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Approval of the Financial Services (Amendment of Law) (No. 3) (Jersey) Regulations 200-

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A decision made (14/03/2008) regarding: Approval of the Financial Services (Amendment of Law) (No. 3) (Jersey) Regulations 200- ("the Regulations").

Decision Reference:  MD-E-2008-0052 

Decision Summary Title :

Financial Services (Amendment of Law) (No 3) (Jersey) Regulations 200-

Date of Decision Summary:

13 March 2008

Decision Summary Author:

James Mews

Finance Industry Development Executive

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

 

Written Report

Title :

Financial Services (Amendment of Law) (No 3) (Jersey) Regulations 200-

Date of Written Report:

13 March 2008

Written Report Author:

James Mews

Finance Industry Development Executive

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:  

Approval of the Financial Services (Amendment of Law) (No 3) (Jersey) Regulations 200- (“the Regulations”)

Decision(s):

The Minister for Economic Development approved the Regulations and determined that it should be lodged au Greffe forthwith in order to secure a provisional date for debate of 29 April 2008.

Reason(s) for Decision:

Following the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008, the Financial Services (Jersey) Law 1998 needs to be revised.  The Regulations will amend the definition of “funds services business” to include functions carried out in relation to unregulated funds.

 

Resource Implications:

No measurable cost or manpower implications arise for the Commission, the States or industry.

Action required:

The Minister for Economic Development to approve the Regulations and the Finance Industry Executive to take such steps as are necessary to lodge them au Greffe in time to be debated on 29 April 2008.

Signature:  Senator P.F.C.Ozouf  

Position:  Minister

Date Signed: 

Date of Decision (If different from Date Signed): 

Approval of the Financial Services (Amendment of Law) (No. 3) (Jersey) Regulations 200-

MINISTER FOR ECONOMIC DEVELOPMENT

 

FINCANCIAL SERVICES (AMENDMENT OF LAW) (NO 3) (JERSEY) REGULATIONS 200- (“THE REGULATIONS”)

  

  1. THE ISSUE AND RECOMMENDATION

 

  1. The Financial Services (Jersey) Law 1998 (“the FSJL”) needs to be revised to allow for the unregulated funds regime introduced by the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008 (“the UFO”).

 

  1. The effect of the amendments is that fund services business will, for the purposes of the FSJL, include functions carried on in relation to unregulated funds and that functionaries in relation to those funds will come under the regulatory provisions of that Law.

 

  1. It is recommended that the Minister approve the Regulations and the Finance Industry Executive take such steps as are necessary to lodge them au Greffe.

 
 

  1. BACKGROUND

 

  1. The Minister will recall that the UFO introduced a new type of fund known as an “unregulated fund” for the benefit of sophisticated institutional and expert investors who did not require the protection of regulation by the Jersey Financial Services Commission (“the Commission”), with its associated costs.
  2. The Minister will also recall that he made the Order on the recommendation of the Commission, by their letter of 12 February 2008, and that in that letter the Commission drew the Minister’s attention to the need for changes to the FSJL.
  3. The Regulations effect the changes referred to by the Commission.  The Commission has recommended the Regulations in their letter of 11 March 2008, which is attached.

 

  1. Proposals

 

  1. The effect of the Regulations is to include the provision of services to an unregulated fund within the definition of “fund services business” in the FSJL.  This means that functionaries of unregulated funds will fall within the Commission’s oversight.  This will ensure that the Commission has available its full range of investigatory powers in relation to functionaries of unregulated funds.

 

  1. An additional benefit of this amendment is that special purpose vehicles which are intended to act as the trustee or general partner of an unregulated fund will be able to apply for a fund services business licence under the FSJL.  Such a licence is required by the terms of the UFO, but without the amendment it is not possible to apply for such a licence purely in relation to an unregulated fund.

 
 

  1. RECOMMENDATION

 

  1. It is recommended that the Minister approve the Regulations and the Finance Industry Executive take such steps as are necessary to lodge them au Greffe.

  
 

JAMES MEWS

Finance Industry Development Executive

14 March 2008

http://sojedmdav/livelinkdav/nodes/24569751/WR_Financial Services (Amendment of Law) (No 3) (Jersey) Regulations 200-.doc


 

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