The fund type, which can be listed on the Irish Stock Exchange and does not carry a statutory minimum investment level, has a number of requirements by which fund managers and promoters must abide.
These include investment risk, risk management, limits on hedging and borrowing, as well as numerous further rules, compliance with which is monitored by Isle of Man regulator the Financial Supervision Commission
(FSC).
John Aspden, chief executive of the FSC, said: “I view this as a flagship product underlining the quality of the fund range the Isle of Man can offer.”
He added: “The level of regulatory oversight combined with the additional requirements placed on parties acting for the fund mean the regulated fund is not subject to the mandatory entry criteria [minimum €100,000 ($123,000)] which are imposed on less regulated funds in order to ensure that they are not sold in a retail context.”
The island has also relaunched its specialist and qualifying fund types, introducing greater flexibility for managers and scheme promoters A fourth fund type, authorised funds, are the most tightly regulated and so most retail-friendly structure available in the Isle of Man.
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