A new Regulated Fund, and updated Specialist and Qualifying Funds, in the Isle of Man - F.S.C Press Release

With effect from 1 May 2010 the Isle of Man Financial Supervision Commission (“the Commission”) is providing a new opportunity with the Regulated Fund type, and is reissuing the Specialist and Qualifying Fund types as Registered Funds.

This move is in response to the new market environment and recognises the importance of appropriate regulatory oversight for funds.

On the basis of the Regulatory Structure the Irish Stock Exchange have confirmed that funds which are Isle of Man Regulated Funds under the Collective Investment Schemes (Regulated Fund) Regulations 2010 are suitable for listing on the Irish Stock Exchange without the imposition of a Euro 100,000 investment threshold criteria.

Mr John Aspden, Chief Executive of the Commission, commented,”I am delighted that, following discussion with industry and a review of our fund range, we have developed a modern flexible Regulated Fund. I view this as a flagship product underlining the quality of the fund range that the Isle of Man can offer. We have already had interest shown in the new fund type and look forward to its future success.

I am also pleased to announce that we have relaunched the Specialist and Qualifying Fund types as Registered Funds. In doing so we have taken the opportunity to review the regulations and introduce further flexibility.

I believe that the Island’s fund offering is first class, balancing appropriate regulatory requirements with the commercial flexibility needed in the modern financial environment.”

For Further details

Please refer to the Key Features Document which sets out the high level differences between the Regulated Fund, Qualifying Fund and Specialist Fund and the new Collective Investment Schemes Handbook which takes effect on 1st May 2010.

Alternatively please contact:

Claire Whitelegg - Tel. +44 1624 689332

Email: claire.whitelegg@fsc.gov.im

Background information:

In 2007 the FSC undertook a review of the Island’s fund products in conjunction with the Treasury sponsored Funds Review Group and “the Smith Report”. This led to 2 new fund types: the Specialist Fund and the Qualifying Fund, being developed and changes to other products. In 2008 the Collective Investment Schemes Act came into effect bringing with it a new, modern, flexible, architecture for funds.

The Regulated Fund is a new type of Full International Scheme which is subject to a relatively high level of oversight by the FSC of the scheme, its governing body and functionaries.

• Each party to the scheme has clearly defined areas of responsibility
• There are mandatory warnings and information that must be included in the scheme’s “offering-document” and promotional materials
• There are clear requirements for the financial information and audit of the fund
• The FSC reviews changes to the fund, its functionaries and documentation
• There are requirements for notifications to the FSC including notification of breaches of the regulatory requirements.

As a result of this regulatory structure, the scheme is allowed to describe itself as a regulated fund.

In developing the Regulated Fund, the FSC consulted with industry and interested parties and worked closely with the IOM Fund Management Association. As part of the development process the Commission considered the regime against its statutory regulatory objectives of:

(a) securing an appropriate degree of protection for the customers of persons carrying on a regulated activity;

(b) the reduction of financial crime; and

(c) supporting the Island’s economy and its development as an international financial centre.

On Friday 23rd of April Isle of Man Finance and the Isle of Man Fund Management Association are holding a joint conference in London entitled “The Offshore Debate – the Future of Funds”. The Regulated Fund, with comes into operation on 1 May, and the rest of the IOM funds products will be promoted at this and other events.

The Regulated Fund complements the existing regulatory structures by introducing a fund that is subject to higher levels of oversight than the less tightly regulated Specialist and Qualifying Funds and the highly regulated Authorised Scheme. The level of regulatory oversight combined with the additional requirements placed on parties acting for the fund mean that the Regulated Fund is not subject to the mandatory entry criteria which are imposed on less regulated funds in order to ensure that they are not sold in a retail context.

22nd April 2010

DisabledGo Information

Terms & Conditions

©2010 Crown Copyright