The Guernsey Financial Services Commission has published a
consultation on a draft update to Guernsey's Collective
Investment Schemes (Class B) Rules 1990 ("the 1990
While the 1990 Rules have been subject to various amendments
they have not previously been the subject of a detailed review.
Class B schemes, which are the most common form of open-ended
collective investment schemes in Guernsey, range from retail funds
aimed at the "general public" via institutional funds to
the strictly private funds established for a narrow range of
investors, and their investment objectives and risk profiles are
The results of that review are a set of draft 2012 Class B Rules
("Draft Rules"). Significantly the consultation paper
notes that the Rules continue to place emphasis on
sufficient disclosures being made in documentation offered to
investors being given sufficient time after notification of a
change to the operation or management of the scheme to redeem their
holdings should they wish to do so.
In addition, a number of areas where the GFSC's prior
approval was required have been amended to simply require
The GFSC has stated an intention for the Draft Rules to come
into effect during the second quarter of 2012 and have requested
comments on a number of specific issues as well as more general
comments on the Draft Rules. Both the consultation Paper and the
full text of the Draft Rules are available here.
Comments must be provided to GFSC by close of business on
Thursday 5 April 2012.
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 Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In this article Maples and Calder's Gwyneth Rees, Kelli L. Moll of Akin Gump Strauss Hauer & Feld, Neil Koren of Shartsis Friese LLP, and Peter Astleford of Dechert LLP discuss the impact of the 2008 financial crisis on the hedge fund industry and the fiduciary duties within English law and Cayman as compared to those of the US.
Guernsey is, for many, the jurisdiction of choice for the establishment and/or administration of all types of collective investment vehicle, including private equity, hedge and property funds, across a wide range of asset classes.
The regulatory and legal framework for securitisation transactions is non-intrusive, flexible as to the assets which may be securitised and at the same time secures the required level of investor protection.
The British Virgin Islands ("BVI") has a long established reputation for providing cost effective corporate structures for raising finance and for acting as efficient gateways for collective investments.
UCITS may invest in financial derivative instruments for investment purposes subject to a variety of conditions as outlined below relating to the nature of the exposures taken, the leverage generated through such positions, the process employed by the UCITS to manage the risks arising from derivatives investment as well as rules relating to OTC counterparty exposure and to the valuation of derivatives positions.