(Investment Business Update Special November 1996)
The ability to establish collective investment schemes targeted towards institutional investors - that is to say, business, experienced or professional investors - has been possible in Guernsey since at least 1963.
Although not specifically referred to as Professional Investor Funds (or PIFs), there are at present 62 Guernsey based PIFs, of which 38 are open-ended investment companies and 24 are open-ended unit trusts. (Data on the number of closed-ended PIFs is not currently available). These funds have been established under Guernsey's Class B scheme rules.
Class B schemes offer more flexibility from the rules than those which govern Class A schemes. For example, for Class B schemes there are no specific investment, borrowing and hedging restrictions and this allows for the possibility of new products without the need for amending regulation. Thus, most fund managers in Guernsey have taken advantage of this facility.
However, in response to local fund managers' requirements, the Investment Business Division of the Commission is considering the development of a separate class of collective investment scheme - with even more flexibility and product design options - in order to more effectively promote funds targeted at professional investors. The Commission anticipates going out for consultation to the industry by the end of the year.
For further information contact Peter Crook on Tel: +44 (0) 1481 712 706 or fax: +44 (0) 1481 712 010 or e-mail: firstname.lastname@example.org
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