Promoters of investment funds can access a unique set of custody services in Guernsey.
The Island offers not just standard custody operations but also providers with the knowledge and capacity to take on the responsibility of being a trustee – hence the name 'custodian trustee services'.
Giving You the Full Picture
The requirement for Guernsey open-ended funds (which predominantly comprise B Schemes) to have a Guernsey based custodian is at the cutting edge of regulatory developments to enhance supervision in the wake of the financial crisis.
This obligation, coupled with Guernsey's heritage in providing a wide range of financial services including wealth management solutions, means that the Island is a leader in this field. It is able to offer not just general custody services such as dealing and settlement but also a series of globally renowned providers who can take on a fiduciary role played by a trustee.
Where this is the case, the custodian works with the other parties in the fund structure, such as the administrator, to provide robust support for corporate governance.
This gives the board what is, in effect, another pair of independent eyes. The transparency can be of extra comfort to investors.
Our providers of custodian trustee services view their offering as an integral piece in the jigsaw that allows you to have a complete picture of your fund structure.
Guernsey closed-ended schemes are not required to have a Guernsey custodian trustee but in fact many still do use a Guernsey custodian, perhaps to have another prominent name associated with the vehicle and/or an independent entity to provide oversight. Guernsey custodians are also well equipped to handle funds established in many different parts of the world.
Why Else Would You Choose Guernsey?
- Guernsey – independent from the UK and EU – has a history of political and economic stability.
- The Island is located between the UK and France, within easy reach of and good links to both the London and European markets.
- It is English speaking, uses the British pound Sterling and is in the same time zone as the UK – so business is conducted as far and wide as both the Far East and the US in the same day.
- Guernsey has over the last 50 years established itself as a leading international finance centre.
- There is significant infrastructure and expertise, with the Island boasting nearly 600 CISI members.
- Guernsey plays host to globally renowned finance houses with the knowledge and capacity to act as custodian trustees.
- They have access to global markets, either through their own networks or third-parties.
- There is flexibility to manage a wide variety of structures as well as asset classes.
- Custodian business is not tied to administration – promoters can choose whether to use providers of administration and custody as totally independent entities.
- A wide-range of services such as banking, fiduciary services and stockbroking are also available on-Island.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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.