Introduction to Platform Play in GIFT IFSC
IFSCA Official is working on a new concept that could change how fund management works in GIFT IFSC. This new idea is called "Platform Play" or third-party fund management services. It’s like creating a shared space where different fund managers can work together, using the same infrastructure, just like chefs sharing a kitchen.
What is Platform Play?
Platform Play is a system where investment managers, also known as Fund Management Entities (FMEs), can manage funds for their clients using shared resources. This means that a fund manager doesn't have to set up everything from scratch. Instead, they can use the infrastructure already in place, which saves time and money.
Key Points of the Proposed Rules
Adding a New Chapter: IFSCA plans to add a new section to the Fund Management Regulations of 2022 to include these third-party fund management services.
Clear Definitions: Platform Play allows FMEs to manage their own funds and also manage funds for others, using the same resources.
Who Can Use Platform Play? All FMEs registered with IFSCA can offer these third-party management services to their clients.
Transparency and Disclosure:
FMEs must clearly disclose in their offer documents that they are providing third-party fund management services.
Each fund must have its investment strategy and risks clearly outlined so investors know exactly what they are getting into.
Governance and Oversight:
Every investment strategy under Platform Play must have a dedicated Principal Officer and Compliance Officer.
This ensures that each fund is managed properly, with its own rules and oversight
Growth Threshold:
If a fund grows to manage $10 million in assets, it must be set up as a separate entity. This means it will leave the shared platform and operate independently.
Risk Management:
FMEs must have strong risk management plans to handle any issues that might arise from managing multiple funds on a shared platform.
Regular internal audits will ensure that everything is running smoothly and in compliance with the regulations.
Why is This Important?
The idea behind Platform Play is to make it easier for new fund managers to start their businesses in GIFT IFSC. They can test their strategies without needing a lot of money upfront. It’s a flexible and cost-effective way to foster innovation in the fund management industry.
Global Inspiration
IFSCA’s Platform Play is inspired by successful models from other countries, like Luxembourg’s Management Companies (ManCos). These companies also manage multiple funds using shared resources and follow strict regulatory frameworks.
How to Get Involved
IFSCA invites feedback on the proposed amendments from the general public and stakeholders. Comments and suggestions can be submitted via email to the following contacts by August 26, 2024:
Mr. Mihir Upadhyay: mihir.upadhyay@ifsca.gov.in
Mr. Jasmeet Singh: singh.jasmeet@ifsca.gov.in
Ms. Kanika Singh: singh.kanika@ifsca.gov.in
Mr. Paras Jain: jain.p@ifsca.gov.in
Please ensure that submissions are made in MS Word or MS Excel format.
Format for Providing Comments/Suggestions
When submitting comments or suggestions, please include the following details:
Proposed amendments to IFSCA (Fund Management) Amendment Regulations, 2024
Name and designation of the person
Contact number and email ID
Name of the organization
Comments/suggestions/suggested modifications
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