Information about the publication of Ministerial Decisions

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demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
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A decision made 1 February 2013:

Decision Reference: MD-E-2013-0020

Decision Summary Title :

Regulations and Orders made pursuant to the Financial Services (Jersey) Law 1998 and the Alternative Investment Funds (Jersey) Regulations 2012

Date of Decision Summary:

31 January 2013

Decision Summary Author:

Director, Finance Industry Development

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Oral

Person Giving

Oral Report:

Deputy Director, Finance Industry Development

Written Report

Title :

N/A

Date of Written Report:

N/A

Written Report Author:

N/A

Written Report :

Public or Exempt?

N/A

Subject:

The regulation of certain Jersey funds, Jersey managers of EU funds and Jersey depositories acting for Jersey funds that are marketing in the EU and/or EU funds, to ensure appropriate compliance with the European Union Directive 2011/61/EU, the Alternative Investment Fund Managers Directive (the “Directive”).

Decision(s):

The Minister for Economic Development authorised the drafting of amendments including to the Alternative Investment Funds (Jersey) Regulations 2012 (“AIF Regulations”) and the Financial Services (Jersey) Law 1998 (“FSJL”) so as to specify the alternative investment funds (“AIFs”), managers and depositories that are within and outside the scope of such law and regulations.

The Law Draftsman’s Office is to be instructed by the Finance Industry Development Department to draft certain regulations and orders which:

prescribe the schemes or arrangements to which the AIF Regulations apply;

introduce a further new class of “AIF Services Business” under the FSJL; namely providing Depositary Services to AIFs;

expand the existing exemptions in Schedule 2 of the FSJL, exempting those persons conducting AIF Services Business from other elements of the FSJL such as Investment Business, Fund Services Business and Trust Company Business;

amend the Financial Services Business (Financial Services Business) (Jersey) Order 2009 (“FS Order”) to create the new Class of AIF Services Business and two sub classes within that (acting as a Manager and acting as Depositary to an AIF); and

to the extent that the Finance Industry Development Department consider it necessary during the next six month period to ensure that Jersey regulation addresses the requirements of the private placement and passporting regimes under the Directive, amend the AIF Regulations, the FSJL and the FS Order.

Reason(s) for Decision:

It is necessary to limit the scope of the AIF Regulations and recent amendments made to the FSJL (both of which come into force on 2 April 2013) so that they only apply to certain Jersey funds, managers and depositories. Specifically, the AIF Regulations and the recent amendments to the FSJL should not apply to Jersey collective investment funds, recognised funds and those managers and depositories who are authorised to carry on Fund Services Business under the FSJL. The reason being is that it is considered that those funds, managers and depositories are currently subject to an appropriate level of regulatory oversight pursuant to the Collective Investment Funds (Jersey) Law 1988 and the FSJL, and additional regulation would only result in duplication.

The AIF Regulations were purposely drafted widely in 2012 because, at that time, the Level 2 Regulations setting out the detail of the Directive were not known.

The Jersey Financial Services Commission (the “JFSC”), Jersey Finance Limited (“JFL”) and Industry have been (and continue to be) consulted in relation to the proposed drafting instructions to the Law Draftsman. To date, the JFSC, JFL and Industry are all in favour of the proposals set out in the law drafting instructions.

Resource Implications:

There are no financial or manpower implications for the States of Jersey arising as a result of this decision.

Action required:

Instructions are to be produced by the Finance Industry Development Department to go to the Law Draftsman to draft amendments as set out above.

Signature:

Senator AJH Maclean

Position:

Minister for Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Alternative Investment Funds (Jersey) Regulations 2012 and Financial Services (Jersey) Law 1998: Amendments: Law Drafting: Authorisation

Information about the publication of Ministerial Decisions

A decision made 1 February 2013:

The AIF Regulations were purposely drafted widely in 2012 because, at that time, the Level 2 Regulations setting out the detail of the Directive were not known.