In Guernsey, collective investment schemes (open- or
closed-ended) can either be "authorised" or
"registered". The key difference from a regulatory
perspective is that the Guernsey Financial Services Commission (the
"Commission") does not undertake detailed due diligence
on the parties associated with a registered scheme, relying instead
upon certifications by the local "designated manager"
(administrator) of the scheme, who is itself licensed by the
Commission. Registered schemes can take advantage of a fast -track
approval process by the Commission, but, to date, registered
schemes could not be offered directly to the public in
Having monitored and been satisfied overall with the certification process and due diligence carried out by its licensees in respect of registered funds since the registered fund regime was first implemented, the Commission considers that it is no longer necessary to prohibit the direct offering of registered schemes to the public in Guernsey.
The Registered Collective Investment Scheme Rules, 2008 (the "2008 Rules") have therefore been repealed and replaced by the 2015 Rules (made on 6 March 2015). With the exception of certain transitional provisions, the new rules take effect on 1 April 2015. The main change in the 2015 Rules is to allow the direct offering of registered schemes to the public in Guernsey. In addition, the term "designated manager" has been replaced by "designated administrator" to reflect more accurately the role of that party in the scheme, such role being to administer the scheme in accordance with its information particulars. Certain typographical errors in the 2008 Rules have been corrected in the 2015 Rules.
Updated Forms REG and REGSF taking into account the changes to the 2015 Rules will be released by the Commission separately before 1 April 2015.
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.