The regulations currently concerning the registration, promotion and sale of derivatives funds in Europe are covered in other articles of this blog. While these regulations are complex, or alternatively, ill-defined, two generalizations are possible.

The first is that European citizens may buy derivatives funds wherever these funds are registered and in whatever form they take. The second is that it is normally possible to promote derivatives funds to residents of a European country who are not its citizens and who do not naturally speak its language— in other words to the expatriate community of a country—at least as a first option.

Both generalizations require definition. Read more »

Posted: February 10th, 2008 under Future Investing, Future Management.
Comments: 5

GUERNSEY (CHANNEL ISLANDS)

Futures funds can be set up in Guernsey as unit trusts or investment companies, either closed- or open-ended. Open-ended funds are regulated by the Guernsey Financial Services Commission (FSC) under the Protection of Investors (Bailiwick of Guernsey) Law 1987.

Closed-ended funds are regulated by the Advisory and Finance Committee under the Control of Borrowing (Bailiwick of Guernsey) Ordinances 1959 to 1989, although the FSC looks after all funds on a day-to-day basis.

Guernsey’s FSC has a wide responsibility, including protecting and developing Guernsey’s shares of the lucrative financial services industry. This means that only fund management businesses with pedigree and track record will be allowed to establish funds. Read more »

Posted: February 10th, 2008 under Future Fund.
Comments: 6

This article covers the regulatory environment for managed futures funds in a selection of European offshore centers:

• Gibraltar;
• Isle of Man;
• Guernsey;
• Jersey.

GIBRALTAR

There are no specific regulations for futures funds in Gibraltar, but the Financial Services (Collective Investment Schemes) Regulations, 1991 apply to futures funds established in Gibraltar in addition to the Part III of the Financial Services Ordinance.

The regulator of the financial industry in Gibraltar is the Financial Services Commission (FSC) which may impose specific further requirements on particular funds under its discretionary powers. Read more »

Posted: February 10th, 2008 under Future Fund, Future Investing.
Comments: 6