Guernsey: Administering Non-Guernsey Funds From Guernsey

Last Updated: 16 May 2011
Article by Helen Crossley

Most Read Contributor in Guernsey, September 2018

Originally published as 'Non-Guernsey Growth' in Contact Magazine, April/May 2011

There has been much handwringing of late over the choice of domicile for fund structures. Depending on the needs of managers and investors, the major funds jurisdictions each offer something different, writes Helen Crossley, Group Partner at Appleby in Guernsey.

Guernsey's funds industry continues to grow its market share. Figures released by the Guernsey Financial Services Commission ("GFSC") show that the value of funds business in Guernsey reached £257.4 billion at the end of 2010. Whilst there was a small rise year on year in respect of the value of open ended funds, and a larger rise in the value of closed ended funds in Guernsey, the most significant growth was in respect of non-Guernsey schemes – for which some aspect of management, administration or custody is carried out in Guernsey – where the value of funds reached £90 billion, an increase of £41.9 billion (87.1%) year on year. This growth in the value of these funds in 2010 results from the large number of non-Guernsey schemes that entered into service agreements with local licensees. It should also be noted that a significant proportion of these schemes are Cayman domiciled.

Guernsey's reputation as a finance centre with first class service providers and sensible, but not onerous, regulation has meant that a number of big names have moved to the Island in recent times to provide services to the funds industry. The significant increase may partly be due to the relocation of fund managers to Guernsey but is also recognition of the quality of management, administration and custody services on offer in the Island.

Where it is proposed to administer a non-Guernsey open ended scheme in Guernsey, GFSC approval is required. The approval process is relatively straightforward and there are certain exemptions.

Obtaining Approval

In considering whether to approve a local licensee to provide services to a non-Guernsey open ended scheme, the GFSC will consider:

  • The protection and enhancement of the reputation of Guernsey as a financial centre, the general nature and specific attributes of the controlled investment business to which the proposal relates and any other factors the GFSC considers appropriate.

The GFSC will apply the same standards as if the non-Guernsey open ended scheme were applying to obtain authorisation under the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended ("POI Law").

  • Notification should be made to the GFSC by letter including confirmation that no other local licensee is acting and providing the scheme particulars for review. The GFSC may undertake checks on the promoters and certain other parties to the scheme (unless the fund may be regarded as a Qualifying Investor Fund and the local licensee chooses to apply using the fast track application regime).
  • Personal questionnaires are required from the directors of the fund, beneficial owners of a promoter which is not a public company (being individuals with 15% or greater ownership or voting control), other key individuals upon which the performance of the fund will depend, and any other persons the GFSC requests.
  • Non-Guernsey open ended schemes fall under the Licensees (Conduct of Business and Notification) (Non-Guernsey Schemes) Rules 1994 (the "NGS Rules"). An application fee of £1,000 and an annual fee of £500 fee which is reduced pro rata in the first year of approval are payable. The scheme is subject to ongoing reporting requirements.
  • Where non-Guernsey schemes are closed ended, there is no fee and the NGS Rules do not apply.

Exempt Non-Guernsey Schemes

Designated Territory status has been granted to:

  • the UK
  • Jersey
  • the Isle of Man
  • the Republic of Ireland

This means that applicants carrying on business in relation to collective investment schemes with a main place of business in any of the above do not require a licence under the POI Law to promote certain collective investment schemes in the Bailiwick, but must give prior notice to the GFSC by completion of Form EX and submission of the latest prospectus and other documents.

An application fee of £1,000 and an annual fee of £500 fee which is reduced pro rata in the first year of approval are payable for schemes other than those domiciled in Jersey.

The NGS Rules do not apply to exempt schemes, but there is an on-going requirement to notify the GFSC of any significant changes, including links to updated prospectuses and published annual report and accounts.

The relevant schemes covered under this exemption are, broadly, highly regulated retail schemes. Schemes which have been recognised in the UK (for example, a UCITS scheme) are also covered in practice.

The Upshot

For growth of the type seen in Guernsey in respect of non-Guernsey schemes suggests Guernsey's progression to a centre of excellence for funds is well on track. Rumoured changes to the NGS Rules to introduce a licensee certification fast track approval are also good news.

For more information about Guernsey's finance industry please visit

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions