In recent months the Island has made several legislative
changes related to funds business and introduced a new set of fund
rules. The result is that the enhanced range of options available
provides extra flexibility to fund managers and
The new fund regime – in a
Both Guernsey open and closed-ended funds can be established as
authorised or registered funds. Authorised funds are regulated by
the Guernsey Financial Services Commission (GFSC) and are subject
to continuing supervision by the Commission. Registered funds
whilst also regulated by the GFSC are not authorised and are
subject to separate rules.
Applications for registered funds are processed by the GFSC
within a three working-day timeframe (this is now also available to
open-ended schemes having previously only been applicable to
closed-ended funds). Authorised funds remain subject to the
traditional approval process unless they are established as
Qualifying Investor Funds (QIFs) when again they will be processed
within three working days.
In addition, a new fast-track procedure will now allow managers
and general partners who need to be licensed under Guernsey law to
service these (registered or QIF) funds to take advantage of a
reduced application period of 10 working days.
Some other key points to note are that:
Authorised open-ended schemes continue to be governed by Class
A, Class B and Class Q Rules.
Registered open-ended schemes – like authorised
open-ended schemes – are required to appoint a Guernsey
licensed administrator and custodian. Both registered and
authorised closed-ended schemes need only appoint a Guernsey
licensed administrator, provided that they can demonstrate to the
GFSC how the assets of the scheme will be held.
GFSC consent is no longer required for the raising of money
through the issue of shares in a company, units in a unit trust or
interests in a limited partnership.
GFSC consent is no longer required in order to form a limited
New prospectus rules set out the disclosures to be included in
the offer documents. The rules do not apply to an issuer registered
in a country that is a member of IOSCO and listed on a stock
exchange (or listed on a stock exchange supervised by an IOSCO
"Global economic conditions are making it difficult for
fund managers and promoters to raise money. Investors have an
increased need for confidence in the product, the service provider,
the domicile and its regulators. In making these changes to our
fund regime we are providing the tools that fund architects are
demanding to enable them to create the funds which will meet the
requirements of the new market place," said Peter
Niven, Chief Executive of Guernsey Finance.
"These changes provide us with a comprehensive menu of
options offering real choice in terms of speed of approval and
levels of supervision while highlighting our hallmarks of high
quality regulation and strong corporate governance. It demonstrates
our continued adaptability and flexibility to be able to meet
current demands of fund managers, promoters and
Please note: All timings are subject to meeting
designated conditions. Visit
www.gfsc.gg/ for more information on these and further details
on the new regime, including transitional arrangements for existing
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