Jersey intends to follow up its expert fund regime with the launch of a new streamlined authorisation regime for listed investment funds. ...

Jersey intends to follow up its expert fund regime with the launch of a new streamlined authorisation regime for listed investment funds. The Jersey Financial Services Commission is proposing that closed ended investment funds that are listed on European and other leading stock exchanges, including the Channel Islands Stock Exchange, should be subject to a streamlined 72-hour approval procedure. The regime will be available to private equity, property and other alternative investment funds such as hedge funds and funds of hedge funds. The new regime would operate like the existing expert fund regime, but with no selling restrictions attached to these investment funds. The JFSC has concluded that the regulatory environment of products listed on recognised exchanges and promoted by established sponsors already provides enough investor protection so a lighter level of regulation in relation to authorisation is considered appropriate. It is anticipated that a fund will need to meet a number of criteria including: · Having a listing on a recognised stock exchange or market · Being formed as a Jersey closed-ended company · Having a majority of independent directors on the board · Possessing an investment manager with appropriate experience and one which is regulated in its home jurisdiction (or is otherwise approved by the JFSC) · Satisfying the JFSC’s principles of corporate governance · Meeting other requirements similar to those that apply to the expert fund regime. Gary Clark, chairman of the Jersey Funds Association, said that the commission intends to publish its proposals in a new Jersey Listed Fund guide, which has been prepared in consultation with the Jersey Funds Association, later this month. The intention is to introduce the new regime officially before the end of the year. The proposal outlined relates to companies although the commission and the industry are consulting on extending this regime to Jersey limited partnerships and unit trusts at a later date.