The number of expert funds being established in Jersey is accelerating as the total reached 70 by ea...
The number of expert funds being established in Jersey is accelerating as the total reached 70 by early May. Around a third of the expert funds launched so far invest in alternatives.
John Pallot, director of securities at the Jersey Financial Services Commission (FSC), said that from the inception of the expert funds regime in February 2004 to the end of January 2005, 36 funds were established. But from the end of January 2005 to the beginning of May, 34 funds had been launched. He said that six more funds are currently being processed.
According to Pallot, of the expert funds established so far, around a third are focused on alternatives, a quarter are property portfolios followed by equity funds and then other asset classes.
Now that the expert funds regime has been in place for more than a year, it has come under review by the FSC. Pallot said: "We are going to issue guidance on which parts of the regime we can provide derogation. For example, if a fund meets the criteria, it does not have to apply for derogation. The fund will qualify automatically. This will speed up the process of launching expert funds."
The FSC is also looking to extend the non-domiciled funds guide. Last year, this was relaxed so it matched the expert funds regime. "We are looking at relaxing the rules for the administration of non-Jersey funds," said Pallot. Rather than each fund being regulated, the service providers would come under full regulation by the FSC.
Jersey is also progressing changes to its companies and trusts legislation. The FSC has announced that the Companies (Jersey) Law 1991 will be amended by the end of 2005 to introduce protective cell companies on the island. Richard Boleat, chairman of the Jersey Association of Trust Companies, said Jersey will differentiate itself from other jurisdictions by allowing each segregated account within a PCC to have its own directors.
According to Boleat, the review of the Trusts (Jersey) Law 1984 is expected to introduce "statutory provision for settlor reserved powers, greater certainty over the validity of Jersey trusts established by non-resident settlors and provisions designed to make the Jersey trust a more attractive vehicle for use in private family trusts and unit trusts."
The consultation on the introduction of foundations was completed in February 2005 and it is expected the draft law will be drawn up and passed by the end of this year.
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