New Codes Of Practice For Funds Issued By JFSC

by Robin Pilgrim, for LawAndTax-News.com, London

26 June 2003

The Jersey Financial Services Commission has issued revised codes of practice designed to make the Island more attractive to fund business, it emerged earlier this month.

Speaking with regard to the new proposals for permit holders of collective investment funds, Roger Bignell, Director of Authorisation at the JFSC, explained that:

'They are part of a new streamlined authorisation process intended to make Jersey more attractive to sponsors of all funds, particularly 'non-retail' funds. This new process has been under discussion for some months and agreement is expected soon.'

According to Mr Bignell, the regulatory framework, when complete, will provide guidance as to the structure of all funds, including:

- Definitions of four different types of fund (which are: retail funds recognised by UK regulators, unclassified retail funds marketed to non-UK investors, expert funds marketed to HNWI and institutional investors, and private fund marketed to institutional investors);

- Information that must be included in the constitutive documents of each type of fund;

- The agreements entered into by service providers to the fund and investors;

- The standards of conduct expected of businesses providing services to funds, including principles governing best practice in the area of corporate governance.

Speaking following the release of the proposed codes of practice, JFSC director, Richard Pratt announced that:

'We believe that the proposals will help Jersey's finance industry continue to grow by streamlining procedures, in particular for funds designed for the specialist and expert investor sectors. At the same time, we will be maintaining rigorous requirements for disclosure of all relevant details for funds aimed at broader groups.'

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