Mediaboss Marketing

12 March 2012

The Isle of Man government has launched a consultation on draft legislation to update the regulation of 'Recognized' Collective Investment Schemes.

In the Isle of Man, 'Recognized' Schemes are schemes that are authorized under the laws of certain (designated) countries, which are of a class specified in an Order made by the Manx Financial Services Commission (FSC). The Collective Investment Schemes Act 2008 allows the FSC to make such Orders only if it is satisfied that adequate protection will be afforded to participants in the schemes covered by those Orders.

The consultation document notes that the benefit of such Orders is that they enable the 'Recognized' Schemes to be promoted to investors in the Island, so that residents of the Isle of Man can have access to a variety of investment options, including retail funds.

The existing 'Recognized' Schemes Orders that designate certain schemes in Guernsey, Jersey and the UK, were made in 1989 (Jersey and Guernsey) and 2006 (UK). However, the document points out that since then there have been changes to those other countries fund structures which means that new Orders are now required so as to keep the Isle of Mans schemes legislation in line with that of the designated countries.

The paper explains that Orders designating classes of schemes in Luxembourg and Ireland were updated in 2011, due to there being more significant changes to those countries funds structures. Smaller changes to fund structures in Guernsey, Jersey and UK during the last few years, means it has been less necessary to progress revised Orders in respect of these countries. The Commission has therefore focused its resources more recently on updating legislation where the changes required were more significant. However, it is now thought appropriate to revise the Orders that relate to Guernsey, Jersey and UK schemes.

The Draft Orders will:

The consultation exercise will remain open until March 23, 2012.

Read this article:
IoM Consults On Fund Laws