Guernsey has been home to listed investment funds since 1953
when the fund now known as Threadneedle UK Select Trust Limited was
admitted to trading on the London Stock Exchange.
Today Guernsey is the domicile of 70 investment funds which are
listed on the London Stock Exchange which is more listed funds than
all other jurisdictions excluding the UK added together. So far in
2014 five funds have been formed in Guernsey and listed on the
London Stock Exchange.
Does tax avoidance push funds to Guernsey? No, it's true
that Guernsey investment funds are exempt from taxation in Guernsey
but then most investment funds in all jurisdictions are rightly tax
exempt. This is morally defensible; collective investment schemes
should not be taxed because the investors in these funds suffer tax
on their income or gains.
So is a desire to avoid regulation pushing funds to Guernsey?
No, Guernsey has adopted regulation equivalent to the Alternative
Investment Fund Managers Directive and of course funds listed on
the LSE have to comply with the Stock Exchange Rules wherever they
So why is Guernsey so popular for these structures? Well we
speak English, use sterling and are in the same time zone as London
with regular connections to UK airports.
Our sixty year track record with listed investment funds means
that lawyers, auditors, company secretaries, regulators and fund
administrators in Guernsey have unmatched expertise.
Furthermore Guernsey's innovative structures and processes
like protected cell companies and the registered fund application
process allow fund managers to launch investment funds efficiently
and in Guernsey we do not penalise funds which invest in
alternative assets like social infrastructure and clean
In this niche area Guernsey contributes to the continuing
dominance of the London Stock Exchange.
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
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