Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Alternative Investment Funds
1.
Legislative and regulatory framework
1.1
In broad terms, which legislative and regulatory provisions govern alternative investment funds in your jurisdiction?
Guernsey

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).

For more information about this answer please contact: Paul Wilkes from Collas Crill
1.2
Do any special regimes or provisions apply to specific types of alternative investment funds?
Guernsey

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.

For more information about this answer please contact: Paul Wilkes from Collas Crill
1.3
Do the legislative and regulatory provisions governing alternative investment funds have extra-territorial reach?
Guernsey

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.

For more information about this answer please contact: Paul Wilkes from Collas Crill
1.4
Are any bilateral, multilateral or supranational instruments in effect in your jurisdiction of relevance to alternative investment funds?
Guernsey

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.

For more information about this answer please contact: Paul Wilkes from Collas Crill
1.5
Which bodies are responsible for regulating alternative investment funds in your jurisdiction? What powers do they have?
Guernsey

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.

For more information about this answer please contact: Paul Wilkes from Collas Crill
1.6
To what extent do the regulators cooperate with their counterparts in other jurisdictions?
Guernsey

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.

For more information about this answer please contact: Paul Wilkes from Collas Crill
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Alternative Investment Funds