Guernsey's financial services regulator has approved 42 new
investment funds for the second quarter in succession, resulting in
a total of 140 additions during the 12 months to the end of
Figures from the Guernsey Financial Services Commission (GFSC)
show that 30 new funds were approved during the fourth quarter of
2013, 26 in the first quarter of 2014 and 42 during both the second
and third quarters of this year.
Overall, the net asset value of all funds under management and
administration in Guernsey fell by £0.4 billion (1.1%) during
the third quarter to £260.9 billion at the end of
Dominic Wheatley, Chief Executive of Guernsey Finance - the
promotional agency for the Island's finance industry, said:
"It is encouraging to see that Guernsey continues to attract
new funds and that both the open-ended and closed-ended funds
sectors grew in value during the last quarter. The figures
demonstrate the solidity and stability of our funds industry and
the continuing attractiveness of Guernsey as a funds centre.
"For example, only recently Investec Asset Management has
migrated and re-domiciled a US$1.2 billion fund from Ireland to
Guernsey due to our dual regulatory regime in respect of AIFMD [the
Alternative Investment Fund Managers Directive]. This is a huge
vote of confidence in our funds industry. We have also heard that a
number of funds are being moved here from the Cayman Islands
because of the effectiveness of our national private placement
regime for distribution into the EU."
Vic Holmes, Chairman of the Guernsey Investment Fund Association
(GIFA), said he was encouraged by the current health of the
Island's funds industry.
"National private placement regimes are generally working
well in most European countries and proving popular for fund
managers based outside the EU. Since the introduction of AIFMD,
promoters have recognised the advantage of Guernsey's ability
to distribute funds into both European and non-European
jurisdictions to best meet their specific circumstances. We also
remain the preferred jurisdiction, excluding the UK, for the
listing of vehicles on the London Stock Exchange, with figures to
the end of November showing 119 Guernsey-incorporated entities
listed on its various markets.
"Overall, Guernsey's funds sector is in a stable
position. We've seen growth in the number of new funds and a
positive response to our regime under AIFMD. As an association we
will shortly be submitting our response to ESMA's consultation
paper on whether or not AIFMD passports should be extended to third
countries and will do our utmost to ensure that Guernsey is part of
the first wave of approved jurisdictions when the third party
passports come into effect."
The 42 new investment funds approved by the GFSC between the
start of July and the end of September comprised three open-ended
funds, eight closed-ended funds and 31 non-Guernsey open-ended
Taking into account licences relinquished, this represents net
growth of 17 funds during the quarter and takes the total number of
funds currently approved for domiciling or servicing in Guernsey to
Guernsey open-ended funds increased in value by £1 billion
(2.5%) to £41.7 billion, while Guernsey closed-ended funds
also increased by £0.1 billion (0.1%) to £135.8
billion. Non-Guernsey schemes - open-ended funds that are not
domiciled in Guernsey but where some aspect of management,
administration or custody is carried out in the Island - decreased
in value by £1.5 billion (1.8%) during the third quarter to
reach £83.4 billion at the end of September.
Mr Wheatley added: "It was pleasing to see that during the
last quarter we added 22 non-Guernsey schemes. This reflects the
significant substance which already exists in Guernsey, especially
in comparison to some other jurisdictions, something that is likely
to be an increasingly important differentiator moving
Observing a recent discussion between the children of a successful entrepreneur, I was reminded once again of the potential impact of family members being provided with differing information about the family enterprise.
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