Guernsey: Brexit-Proof Guernsey Reaches All Four Corners Of The Globe

Last Updated: 24 September 2019
Article by Dominic Wheatley
Most Read Contributor in Guernsey, September 2019

"Guernsey provides quick, effective NPPR access to more than 70% of the nominal GDP across continental Europe and 80% of global wealth."

A survey carried out by Guernsey Finance, the promotional body for the financial services industry in the island, at the SuperReturn International conference in Berlin, showed that more than half of managers were seeking better service and looking to cut costs, and would consider splitting fund structures to achieve that.

More than half of firms surveyed are considering reviewing their distribution and structuring of investment funds in the next 12 months. Some three-quarters had reviewed their distribution arrangement in the previous two years.

Market access remains their key priority. And managers are starting to recognise Guernsey's credentials in global distribution – proven routes to market to institutional investors in more than 50 jurisdictions, across five continents, including the EU, the United States and China.

Standards of service are also a factor of growing concern. More than half of managers say that they consider service levels to be extremely important, and that may influence a change of jurisdiction.

And the survey also showed that more than half of managers would consider splitting global and EU distribution where it led to improved service and reduced costs. Whilst costs are being mitigated by technology, they are also rising in response to the ever-growing EU regulatory burden. More than a third said this issue was a significant concern to them.

Guernsey funds are able to reach investors in jurisdictions representing more than 80% of the world economy. Guernsey's European distribution is through National Private Placement Regimes (NPPR), which provide a proven, smarter, faster and cheaper route to access European investors than EU member state alternatives. Our "four corners of the globe" distribution model needs to be more widely recognised.

We are ideally placed to offer access to worldwide markets, greater certainty for managers and promoters, and more cost-effective solutions with higher levels of service than many of our competitor jurisdictions.

Many promoters think that they need to have a Ucits or an AIF but, when they actually analyse who their target market is and what they require from their fund, a Guernsey vehicle very often turns out to be a better regulatory fit, and offers a cheaper, faster solution.

The European Commission's own figures, from just a couple of years ago, show that 70% of all EU funds are registered for sale in just one Member State, and only 37% of UCITS and just 3% of AIFs are sold in more than three Member States.

These figures expose the Ucits "myth" that Ucits is the only real option for fund structures sold in Europe and prove that the AIFMD passport is not the panacea it might appear.

NPPR has been successfully used many times for marketing into Europe and is well understood as a path for distribution for both managers and promoters, supported by Guernsey-based service providers. It is an effective alternative, particularly for those with a targeted list of marketing jurisdictions.

Guernsey provides quick, effective NPPR access to more than 70% of the nominal GDP across continental Europe.

The island is also positioning itself as the stable alternative throughout the Brexit period and beyond, playing on a 50-year heritage of acting as a conduit for inward investment into the UK and Europe – ideally placed as a jurisdiction to provide certainty to managers, promoters and placing agents.

A recent example comes from Guernsey-headquartered financial services group PraxisIFM, which is providing fund administration and governance services to the Aquila European Renewables Income Fund, a UK-domiciled investment trust investing in renewable energy infrastructure investments across continental Europe and Ireland.

The fund is administered by PraxisIFM in London, but the fund's alternative investment fund manager requirements are being provided by PraxisIFM's Guernsey-based company International Fund Management Ltd (IFM), which has more than $5bn of assets under management.

The fund, listed on the main market of the London Stock Exchange, is the first in its sector to be pan-European, investing in hydro power, solar and wind.

"The decision to appoint IFM as manager was not only due to our experience and high service levels, but also Guernsey's position as a non-EU AIFM jurisdiction, which provides clarity in a post-Brexit environment, for both a UK investment manager marketing into Europe, and also a European investment manager marketing into the UK," said Shaun Robert, Director of IFM.

"With Guernsey having mature co-operation agreements in place with the majority of EU jurisdictions, and IFM already successfully marketing into Europe via National Private Placement Regimes, this route will be unaffected post-Brexit."

While most Guernsey-based funds utilise NPPR to sell into two or three European countries there are known cases of funds using the regime to sell in six or seven countries. One Guernsey fund launched earlier this year registered for sale into six European countries as well as utilising registration or exemptions to sell into a number of other countries including Switzerland, Hong Kong and Singapore.

With Brexit uncertainty in the financial sector both in the UK and the EU due to continue until at least 2022, opportunities to use the well-established AIFMD and Ucits route for fund marketing into Europe are likely to be lost to UK funds.

Given that Guernsey's current access to market into Europe via NPPR will be unaffected, this is seen as an opportunity for the island, which is one of only two jurisdictions to be approved by European funds regulator Esma for the third country passporting regime under AIFMD twice without condition.

Guernsey is a mature, highly experienced and transparent jurisdiction, with requisite economic substance as required by the EU's Code Group on business taxation as was confirmed by our tax regime whitelisting by the EU in March this year. It is time for our global distribution strengths to be clearly understood and acknowledged.

Christopher Jehan, Chair of the Guernsey Investment & Funds Association, outlines Guernsey's distribution strengths

One key issue when choosing a fund jurisdiction is the distribution footprint it can achieve. Guernsey funds have pedigree in many key markets and are known to many regulators worldwide.

The island is in the top four jurisdictions outside the US and Canada for Regulation D private placement into the US,is one of the top four jurisdictions for registering funds for sale to retail clients in South Africa andone of only three jurisdictions outside the European Union and European Economic Area to have a retail fund sales Memorandum of Understanding with Switzerland.

All types of Guernsey fund have been successfully registered for retail sale in Bahrain, while a Guernsey umbrella fund is one of only four non-Ucits to register for retail sale in Luxembourg.

Guernsey has all three regulatory Memoranda of Understanding with Chinese regulators, allowing it to reach the widest range of Chinese investors currently possible.

Together with our established NPPR arrangements with EU member states, this delivers one of the widest possible networks for distribution of funds to our clients.

This article first appeared in HFM Global's 2019 Global Distribution special report, August 2019. Click here to read the full publication.

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.

Similar Articles
Relevancy Powered by MondaqAI
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please 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