Friday, August 19, 2011
The Jersey Financial Services Commission has published feedback on two consultations, on Certified Fund Prospectuses, and on Codes of Practice for Certified Funds, both issued in 2009.
The first consultation paper, number 5 of 2009, sought comment from the industry on proposals to improve disclosure in prospectuses for all types of certified fund. As a result, it is proposed that: a new Order, the Collective Investment Funds (Certified Funds - Prospectuses) (Jersey) Order 201- be introduced; that the Companies (General Provisions) (Jersey) Order 2002 be amended; and the Collective Investment Funds (Unclassified Funds) (Prospectuses) (Jersey) Order 1995 be revoked.
The proposals seek to address the fact that the 1995 Order currently applies only to open-ended funds, not closed-ended funds, and does not apply at all to funds constituted as limited partnerships or limited liability partnerships. Furthermore, there are a number of relatively minor matters required by the International Organization of Securities Commissions' Principles that are not presently required by the local regulatory framework. Lastly, the Companies General Provisions Order is limited to funds that are constituted as closed-ended companies.
The proposals therefore seek to introduce formal regulations covering closed-ended funds constituted as limited partnerships, limited liability partnerships or unit trusts, or open-ended funds constituted as limited partnerships or limited liability partnerships.
The second consultation paper, number 7 of 2009, proposed to introduce Codes of Practice for Certified Funds (the Certified Fund Codes). The key benefit of the introduction of Certified Fund Codes, the Financial Services Commission said, is the simplification of administrative processes whilst maintaining the regulation of fund service providers and certified funds in a manner that is consistent with international standards.
The intention is for the Certified Fund Codes to be introduced towards the end of 2011.