“The review of the rule book will take most of the year and start in January,” says DFSA chief executive David Knott. “The regime is a work in progress. In the structural sense it is complete. We need to continue to review the rules in the context of products and market practices that are emerging.”

Any issues that arise from the review will go for public consultation. The review will follow the publication of a consultation document on 4 December that outlines a lightening up of the regulatory regime.

Among its proposals, the amended rules would make it easier for firms that meet the European Markets in Financial Instruments Directive (MiFID) to join the centre. In line with MiFID standards, the DFSA proposes to halve the minimum threshold for client net assets from $1m to $500,000.

The proposed changes would alter the collective investment law to facilitate the operation of funds from the centre. Fund operators would no longer be obliged to have their administrators based in the centre.

“It is a major policy review that is a result of taking stock and asks if the regulations as set up three years ago are the ones we want for the next few years. It’s deregulatory. It goes back to examine the risks to make sure that we have not oversubscribed for them,” says Knott.

The paper will be open for consultation until February. Consultation papers address comments received and usually pass into law.