Answer ... The primary piece of legislation governing all types of investment funds in Guernsey is the Protection of Investors (Bailiwick of Guernsey) Law, 1987 (POI Law) and the rules and regulations created thereunder by the Guernsey Financial Services Commission (GFSC).
Answer ... Guernsey has specific rules and regulations governing separate types of collective investment schemes established in Guernsey. These are as follows (in order of highest level of regulatory oversight to lowest):
- ‘Class A’ retail schemes are governed by the Collective Investment Schemes (Class A) Rules 2008;
- ‘Class B’ professional investor/institutional schemes are governed by the Collective Investment Schemes (Class B) Rules 2013;
- ‘Class Q’ qualifying investor schemes are governed by the Collective Investment Schemes (Qualifying Professional Investor Funds) (Class Q) Rules 1998; and
- ‘registered’ funds are those funds registered under either the Registered Collective Closed Investment Scheme Rules 2018 or the Private Investment Fund Rules 2016.
Answer ... The law and relevant rules and regulations governing Guernsey funds apply only in Guernsey. However, they apply to funds operating in or from within Guernsey, and thus capture both Guernsey entities undertaking fund activity elsewhere and non-Guernsey entities operating in Guernsey.
A separate regime governs the provision of restricted activities (eg, investment management) to ‘non-Guernsey’ schemes under the Licensees (Conduct of Business and notification) (Non-Guernsey Schemes) Rules, 1994.
Answer ... The GFSC has signed bilateral cooperation agreements with 27 securities regulators from the European Union and the wider European Economic Area, including the United Kingdom, France and Germany, to allow Guernsey funds to be marketed in those jurisdictions by way of their respective national private placement regimes.
The GFSC also entered into a memorandum of understanding with the UK Financial Conduct Authority in March 2019 to give further certainty to Guernsey fund managers in light of Brexit.
Answer ... The GFSC is the main supervisory body for collective investment schemes in Guernsey. The GFSC was created under the Financial Services Commission (Bailiwick of Guernsey) Law, 1987 and most of its powers as they relate to the regulation of funds and fund managers were created under the POI Law. Under the POI Law, the GFSC has the power to create rules and regulations governing fund structures, and to supervise and oversee their implementation. The GFSC has the power to obtain information, investigate, revoke prior authorisations and levy fines in respect of collective investment schemes.
Answer ... The GFSC undertakes international cooperation though membership of, or association with, international organisations such as:
- the International Organisation of Securities Commissions;
- the International Association of Insurance Supervisors;
- the Organisation for Economic Co-operation and Development (through the United Kingdom’s membership); and
- the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism.
The GFSC also works with the Basel Committee on Banking Supervision and the Financial Action Task Force on money laundering.