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Collective Investment Funds (Unregulated Funds) (Amendment No. 3) (Jersey) Order 2018

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

  • demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision

  • providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 25 January 2018:

MINISTERIAL DECISION REFERENCE:    MD-C-2017-0154

DECISION SUMMARY TITLE:  Collective Investment Funds (Unregulated Funds) (Amendment No. 3) (Jersey) Order 2018

DECISION SUMMARY AUTHOR:

Lead Policy Adviser:  Funds, managed accounts & asset management

IS THE DECISION SUMMARY PUBLIC OR EXEMPT?  

Public

REPORT TITLE:  Collective Investment Funds (Unregulated Funds) (Amendment No. 3) (Jersey) Order 2018

REPORT AUTHOR OR NAME OF PERSON GIVING REPORT:  (if different from Decision  Summary Author)

Lead Policy Adviser:  Funds, managed accounts & asset management

IS THE REPORT PUBLIC OR EXEMPT 

Public

DECISION AND REASON FOR THE DECISION:

The Chief Minister made the Collective Investment Funds (Unregulated Funds) (Amendment No. 3) (Jersey) Order 2018 (the Amendment Order).

The Amendment Order makes miscellaneous changes to the Collective Investment Funds (Unregulated Funds) (Jersey) Order 2008 (the Principal Order).  In particular the Amendment Order:

 

  1. permits the appointment of a market maker by a fund company (being a Jersey structure) or by another person on behalf of the fund where the fund company is a United Kingdom real estate investment trust (REIT) and units in that fund company are listed on one or more of the exchanges or markets listed in Schedule 4 to the Principal Order or on a UK recognised stock exchange.  The market maker will facilitate the trading of those units in the fund company that are listed;

 

  1. sets out a requirement for the notice in respect of Unregulated Exchange-Traded Funds (a type of fund as defined in Article 1 of the Principal Order) to be given to the Registrar before 1st April 2018 in order for a scheme or arrangement not to constitute collective investment fund (CIF) (i.e. to constitute an Unregulated Exchange-Traded Fund).  After 1 April 2018, schemes or arrangements that do constitute a CIF will need to be established as another type of Jersey fund.  Existing Unregulated Exchange Traded Funds and those that give notice to the Registrar before 1 April 2018 will be able to continue in operation until the end of their natural life; and

 

  1. updates the list of stock exchanges and markets set out in the Principal Order to reflect the change in the name of the “Channel Islands Stock Exchange” to “The International Stock Exchange”.

 

The Amendment Order will come into force 7 days after it has been signed.

 

The Amendment Order has arisen as a result of a review undertaken by Government, the Commission and industry of Jersey’s funds regime, including a public consultation on the principles in August / September 2016 (feedback published in March 2017).

 

Finally, in accordance with Article 20 of the Collective Investment Funds (Jersey) Law 1988, the Jersey Financial Services Commission has recommended that the Chief Minister make the Amendment Order.

 

 

RESOURCE IMPLICATIONS:

There are no resource implications save law drafting time for the States of Jersey as a result of this decision.

ACTION REQUIRED:

That the Chief Minister sign and seal the Amendment Order and it be returned to the States Greffe for immediate publication, and that the Greffier of the States be requested to arrange for the making of the Amendment Order to be notified to the States.  

 

SIGNATURE:

 

 

SENATOR IAN GORST

POSITION:

 

 

CHIEF MINISTER

 

 

 

DATE SIGNED

EFFECTIVE DATE OF THE DECISION

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