In a move to streamline financial sector compliance and regulatory measures, the International Financial Services Centres Authority (IFSCA) has issued a call for suggestions regarding the review of the IFSCA (Fund Management) Regulations, 2022. This initiative follows an announcement made by the Hon’ble Union Finance Minister in the FY 2023-24 Union Budget, highlighting the need to simplify, ease, and reduce the cost of compliance by revisiting existing regulations. The review process will be open to inputs from both the public and regulated entities.
Detailed Analysis
1. Background to Regulations: The IFSCA (Fund Management) Regulations, 2022, were introduced in April 2022 after an extensive consultative process that involved discussions by an Expert Committee and public consultations. These regulations were put in place to provide a framework for fund management activities within the International Financial Services Centre (IFSC).
2. The Call for Comprehensive Review: To align with the Union Finance Minister’s directive to simplify regulatory compliance, the IFSCA has decided to undertake a comprehensive review of these regulations. This involves seeking suggestions and recommendations from the public and regulated entities.
3. Expert Guidance: In an effort to address complex policy challenges related to the fund management industry, IFSCA recently constituted the ‘Fund Management Advisory Committee.’ This committee’s primary role is to chart a long-term plan for the systematic growth and development of the fund management sector within IFSC. Additionally, it will advise IFSCA on various aspects, including the introduction of new products or services and the prevention of undesirable market practices.
4. The Invitation for Suggestions: IFSCA has now officially invited suggestions for the review of the IFSCA (Fund Management) Regulations, 2022. These recommendations are sought from both the public and regulated entities and represent a crucial part of the review process.
5. Submission Details: Those interested in providing suggestions can send them via email to Mr. Aditya Sarda, Deputy General Manager, at aditya.sarda@ifsca.gov.in. A copy of the email should also be forwarded to Mr. Pavan Shah, General Manager, at pavan.shah@ifsca.gov.in. The deadline for submitting suggestions is set for October 31, 2023.
6. Suggested Format: To facilitate the review process, IFSCA requests that the suggestions be provided in either MS Word or MS Excel format. The suggested format should include:
- Name and details of the person or entity providing the suggestion (organization name if applicable, contact number, and email address).
- Regulation or Sub-Regulation number to be reviewed.
- Text of the Regulation or Sub-Regulation in question.
- The suggested change or recommendation.
- A detailed rationale for the suggestion.
- Any additional supporting information, such as adherence to relevant IOSCO Principles, practices in other financial centers, or practices in other business areas.
Conclusion
The call for suggestions to review the IFSCA (Fund Management) Regulations, 2022, is a vital step towards ensuring the efficiency and effectiveness of regulatory frameworks within IFSC. By inviting input from both the public and regulated entities, IFSCA aims to promote a collaborative approach to regulatory improvements. As the financial sector continues to evolve, this effort to streamline regulations will contribute to a more robust and adaptable regulatory environment within IFSC.
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International Financial Services Centres Authority
PRESS RELEASE
Seeking suggestions towards review of IFSCA (Fund Management) Regulations, 2022
In the Union Budget for FY 2023-24, the Hon’ble Union Finance Minister announced that:
“To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For this, they will consider suggestions from public and regulated entities….”
It may be noted that the IFSCA (Fund Management) Regulations, 2022, which were notified in April 2022, culminated pursuant to an extensive consultative process, comprising of deliberations by an Expert Committee as well as public consultation. Further, with a view to seek guidance in navigating complex policy challenges related to the fund management industry, IFSCA has recently constituted ‘Fund Management Advisory Committee’. The Committee, amongst other things, is expected to lay a longterm plan for the orderly growth and development of the fund management industry in IFSC. The Committee is also expected to advise IFSCA on new products or services, untoward market practices, etc.
In view of the above, IFSCA hereby invites suggestions for review of IFSCA (Fund Management) Regulations, 2022 from public and regulated entities.
Suggestions may be sent by email to Mr. Aditya Sarda, Deputy General Manager, at aditya.sarda@ifsca.gov.in with a copy to Mr. Pavan Shah, General Manager, at pavan.shah@ifsca.gov.in latest by October 31, 2023.
The suggestions should be provided in a MS Word or MS Excel file in the following format:
| Name and Details of the Person / Entity (Organisation name (If applicable), Contact No. and Email address) |
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| S. No. | Regulation No. / Sub- Regulation No. | Text of Regulation / Sub-Regulation | Suggestion | Detailed Rationale | Other supporting information* |
* such as relevant IOSCO Principles, practices prevalent in other financial centres, practices in others business areas, etc.
October 10, 2023
Gandhinagar
