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 Investment
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Flexibility as a Key to the MFSC Approach The MFSC has published Investment Services Guidelines which set out the standards and conditions to be applied generally in the licensing of providers of investment services and Collective Investment Schemes. Detailed conditions are included in the Guidelines for the regulation of schemes available to the public. In appropriate circumstances, the MFSC may adopt a less prescriptive approach, where, for example, the fund is aimed at large and institutional investors. The Guidelines do not form part of the legislation; rather, they set out a comprehensive basis for negotiation between the MFSC and the licence applicant in determining the particular conditions which shall be applied to the licence. The MFSC encourages all potential applicants to engage in a dialogue with the MFSC as early as practicable in the organisational stages of a Collective Investment Scheme or other financial services business in order to identity the particular circumstances of the venture which may warrant a derogation from the standards set out in the Guidelines. The MFSC's approach provides licence holders with the flexibility to develop innovative products and services in order to respond to changing economic and market conditions. The MFSC seeks to maintain its standards of conduct for the businesses it regulates while adapting the licence conditions to the extent possible to accommodate the particular characteristics of each applicant. This regime is likely to prove of particular interest to the managers of funds aimed at non-public investors. In such circumstances, the MFSC may be prepared to be flexible as to the custodial or management arrangements it will accept. Wherever possible, as long as its basic standards are maintained, the MFSC will accept documentation which reflects the particular characteristics of the fund concerned and which is not bound by the strict rules applied in the case of publicly available funds. The
MFSC Investment Services Guidelines are available on request from
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