Isle of Man launches consultation over new fund regulations

News - Funds

Written by Ray Clancy

Friday, 05 March 2010 09:47

The Isle of Man is to change its fund regulations so that it can maintain equivalence with the requirements of the UK’s Financial Services Authority.

The island’s Financial Supervision Commission has launched a consultation on amendments to the Authorised Collective Investment Schemes Regulations and is seeking responses by May 7 this year.

The Financial Supervision Commission is responsible for the licensing and regulation of fund managers as well as the authorisation of collective investment schemes or mutual funds.

It points out that the changes are necessary for the island to retain its Designated Territory status, allowing the Isle of Man to market authorised schemes to the UK public. ‘The Commission views open dialogue with industry and other stakeholders as an essential element in developing an optimal regulatory framework,’ a spokesman said.

While amendments to the UK Authorised Schemes regime have tended to be minimal in recent years, as a result of the European Union UCITS III regime the UK has updated its regime for authorised type schemes. The Isle of Man FSC therefore considers that a full review of the entire Authorised Schemes Regime is needed in order to update the regime and to assist in preserving the existing business being undertaken in the jurisdiction.

In order to maintain parity the Regulations have generally adopted most of the UK FSA’s requirements but with amendments to take account of the Island’s Collective Investment Schemes Act 2008.

As the existing UK requirements are significantly different from the Commission’s current Regulations, there needs to be a major re-write of the requirements produce a ‘road map’ of changes.

Currently the UK FSA is considering whether to permit Authorised Schemes to be structured as protected cell companies (PCCs) and this will be taken into account as part of the review.

The Commission will be liaising with the FSA on developments in this area and should they not go ahead then all references will be removed.