Moves towards a new Jersey funds structure that regulates managers, not underlying investment funds and related vehicles, have been greeted by the head of Ogier's Jersey investment funds team as a welcome innovation for the Island's growing funds sector.

The move has been flagged in a government consultation on simplifying the current legislation and regulation process – the joint consultation exercise by the regulator, the Jersey Financial Services Commission, and the government, the States of Jersey, says formal plans for a "manager-led fund" will be published by the end of the year.

A similar structure was launched in Guernsey in May.

Niamh Lalor, the head of Ogier's Jersey investment funds team, said that the proposal to create the new manager-led product showed welcome flexibility and adaptability from the regulator and the government.

She said: "The positive ESMA passport decision and the continuing growth of the value of assets under administration in Jersey, currently at its second-highest level since 2008, demonstrate the robust health of the investment funds sector in the Island.

"Maintaining and building on that positive position requires continued enhancement and innovation on the part of the industry, the regulator and the government – and it is particularly pleasing to see swift, responsive movement on the announcement of a framework for a manager-led product."

The current consultation trails a forthcoming paper, due by the end of 2016, on a new "Jersey-registered alternative investment fund" or JRAIF. Under that system, the relevant Alternative Investment Fund Manager would be authorised and supervised by the JFSC, who would be responsible for ensuring the JRAIF's compliance with the relevant parts of the Alternative Investment Fund Managers Directive.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.