IoM Proposes Changes To Collective Investment Schemes Regime
by Jason Gorringe, Lowtax.net, London
02 May, 2017
The Isle of Man Financial Services Authority, which supervises the island's financial services industry, has released a consultation paper that proposes changes to the regulation of collective investment schemes.
The consultation paper covers three distinct topics and includes draft legislation in respect of each proposed change, including to how the regulator monitors the industry.
The first change would widen the definition of collective investment schemes to include a limited number of closed-ended investment companies. The Authority says this is necessary for the protection of the public, and also to meet certain principles of the International Organization of Securities Commissions, the international body that brings together the world's securities regulators.
The second change relates to the proposed introduction of an exemption for managers, asset managers, and investment advisers to specialist funds. The Isle of Man Wealth & Fund Services Association has submitted proposals to the Authority outlining possible exemptions and, in response, the Authority has said that, while an all-encompassing exemption is not appropriate, an exemption conditional upon certain restrictions may be considered. The consultation paper sets out draft conditions for the proposed exemption.
The third, and final, change proposes draft amendments to keep the Isle of Man's legislation in line with that of Ireland. The Authority describes these amendments as "housekeeping in nature."
The Authority says the consultation paper is likely to be relevant to persons providing services to collective investment schemes, as well as to corporate service providers that provide services to closed-ended investment companies. Interested parties are invited to submit their comments to the Authority by May 26, 2017.
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