The Isle of Man Financial Supervision Commission has announced that Tynwald, the island’s parliament, has approved the legislative orders required to revamp the jurisdiction’s fund legisla
The Isle of Man Financial Supervision Commission has announced that Tynwald, the island’s parliament, has approved the legislative orders required to revamp the jurisdiction’s fund legislation through the launch of Specialist Funds and Qualifying Funds and the updating of Experienced Investor Funds.
The changes were prompted by the Smith Report, published in March by the Funds Review Group established by the Isle of Man government’s Treasury Department to examine future opportunities for the island’s funds industry.
Among its recommendations, the group advocated the introduction of two new fund types, one targeted at the institutional funds market and another aimed at non-retail investors, plus changes to the existing regime for Experienced Investor Funds.
The regulator, which has consulted with the industry in drawing up the new legislation, says it also plans to announce shortly new licensing arrangements for fund managers and asset managers to complement the new regime.
‘I am delighted that the successful partnership of industry, Treasury and the commission has resulted in a new suite of funds appropriate to the modern marketplace for institutional and non-retail investors,’ says the commission’s chief executive John Aspden.
‘It is pleasing that this close co-operation has allowed the island swiftly and commercially to implement these recommendations of the Funds Review Group. I look forward to continuing this partnership as we work to provide the appropriate regulations to support the island’s funds industry now and into the future.’
The review that led to the publication of the report was instituted in September 2006 under the chairmanship of Paul Smith, formerly global head of HSBC’s alternative fund services division. The working group included representatives of both public and private sector bodies including the Isle of Man Fund Management Association and Isle of Man Finance, the government’s industry promotion body.
The terms of reference for the Funds Review Group included consideration of the legal, regulatory and fiscal framework for the establishment, domicile, management and administration of funds in the Isle of Man. It also covered the co-ordination and future structuring of the marketing and promotion of the Isle of Man’s fund sector internationally.
Isle of Man Finance is the promotional division of the Treasury Department responsible for assisting new financial services businesses in establishing themselves on the island, international media relations, international marketing and supporting existing Isle of Man financial services business.