FCA’s Director of Markets Policy and International, David Lawton, has spoken at the Financial Risk International Forum on systemic risk posed by investment funds to the financial system, and the regulatory changes that might limit these risks. Mr Lawton identifies the ability to manage fund redemptions in an orderly way, particularly in the context of […]

There is no specific model for corporate governance that must be applied to Jersey-based investment funds. Codes of practice issued (or to be issued shortly) by the Jersey Financial Services Commission (JFSC) (the Jersey codes) require that both a Jersey-regulated corporate fund and a Jersey-based fund service provider (for example, manager, administrator, custodian) must have […]

The newly introduced Taxation (Implementation) (Disclosure Facility) (Jersey) Regulations 2013 provide that Jersey fund administrators and Jersey funds must make any clients that were resident in the United Kingdom for tax purposes between April 6 1999 and December 31 2013 be aware of the availability of the disclosure facility with Her Majesty’s Revenue and Customs […]

The consultation process in relation to the regulatory treatment of managed accounts has continued, with the JFSC issuing feedback papers in August and October 2013. The aim of the consultation was to simplify the regime by creating a new category of fund services business (that of managing a managed account) and exempting such managers from […]

The JFSC has now published a paper setting out its final position on its Review of Financial Advice (the Jersey equivalent of the UK Retail Distribution Review). The paper confirms that only persons registered to undertake Class C and D investment business will be affected by the review. The review will distinguish between professional clients […]

The US Foreign Account Tax Compliance Act (FATCA) creates a new tax information reporting and withholding regime for payments made to certain foreign financial institutions and other ‘foreign’ persons. The definition of ‘foreign financial institution’ is very broad and includes funds. Failure to report could result in a 30% withholding tax being deducted from US […]

The EU Alternative Investment Fund Managers (AIFM) Directive has now been in force for over two months and funds and their advisers are coming to terms with the new regime in Jersey. Some interesting themes that have been noted in this quarter are as follows: The new alternative investment fund codes contain provisions regarding the […]