The Guernsey Financial Services Commission has published a consultation on a draft update to Guernsey's Collective Investment Schemes (Class B) Rules 1990 ("the 1990 Rules").
While the 1990 Rules have been subject to various amendments they have not previously been the subject of a detailed review.
Class B schemes, which are the most common form of open-ended collective investment schemes in Guernsey, range from retail funds aimed at the "general public" via institutional funds to the strictly private funds established for a narrow range of investors, and their investment objectives and risk profiles are similarly wide-ranging.
The results of that review are a set of draft 2012 Class B Rules ("Draft Rules"). Significantly the consultation paper notes that the Rules continue to place emphasis on
- sufficient disclosures being made in documentation offered to investors; and
- investors being given sufficient time after notification of a change to the operation or management of the scheme to redeem their holdings should they wish to do so.
In addition, a number of areas where the GFSC's prior approval was required have been amended to simply require notification.
The GFSC has stated an intention for the Draft Rules to come into effect during the second quarter of 2012 and have requested comments on a number of specific issues as well as more general comments on the Draft Rules. Both the consultation Paper and the full text of the Draft Rules are available here.
Comments must be provided to GFSC by close of business on Thursday 5 April 2012.
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.