Comparative Guides

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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
5.
Marketing
5.1
Is the marketing of alternative investment funds subject to authorisation in your jurisdiction?
Guernsey

Answer ... The promotion, or marketing, of ‘controlled investments’ (as defined in the Protection of Investors (Bailiwick of Guernsey) Law (POI Law)) is a restricted activity.

Collective investment schemes fall within the definition of ‘controlled investments’ under the POI Law.

The definition of ‘promotion’ in the POI Law includes:

  • advertising;
  • issuing a prospectus, application form or proposal form; and
  • circulating or making available promotional material.

Carrying out a restricted activity (promotion) in respect of a controlled investment (collective investment scheme) ordinarily requires a licence if carried on in or from within Guernsey, unless one of the statutory exemptions applies.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.2
If so, what criteria must be satisfied to obtain authorisation? Do any restrictions apply in this regard?
Guernsey

Answer ... Obtaining a licence for controlled investment business is covered in question 4.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.3
What is the process for obtaining authorisation and how long does this usually take?
Guernsey

Answer ... Obtaining a licence for controlled investment business is covered in question 4.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.4
To whom can alternative investment funds be marketed?
Guernsey

Answer ... As Guernsey is a designated third country under the EU Alternative Investment Fund Manager Directive, it is unable to avail itself of the passporting regime. Therefore, Guernsey funds looking to market into countries outside of the United Kingdom (where they may freely market themselves) must look at the relevant national private placement regime (NPPR) in the country or territory into which they are looking to market, as to whom such funds can be marketed is generally determined by the rules and restrictions of the relevant NPPR of the country concerned.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.5
What are the content criteria that marketing materials for alternative investment funds must satisfy?
Guernsey

Answer ... Content criteria are set out in the rules of the various authorised funds. Registered funds may be subject to the Prospectus Rules 2018.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.6
What other requirements or restrictions apply to marketing materials for alternative investment funds?
Guernsey

Answer ... Circulation of marketing materials is ‘promotion’ and hence is subject to obtaining a licence for controlled investment business as covered in question 4.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.7
Can alternative fund managers from other jurisdictions market alternative investment funds in your jurisdiction without authorisation?
Guernsey

Answer ... Where restricted activities are conducted by a firm without a base in the Bailiwick of Guernsey at the initiation of the client (ie, on a reverse solicitation basis), a licence is not required.

Additionally, a firm with its main place of business in a country or territory that has been designated for the purposes of Section 29(1)(c) of the POI Law (the United Kingdom is so designated) which promotes collective investment schemes to the public in the Bailiwick of Guernsey does not require a licence, provided that the following requirements are met:

  • The firm does not have a permanent place of business within the Bailiwick of Guernsey;
  • The firm is an entity established in a country or territory designated for the purposes of Section 29(1)(c) of the POI Law and has provided evidence that it is recognised as a national of that designated country or territory;
  • The collective investment scheme falls within the categories specified in the Designated Countries & Territories Regulations that make designations in respect of Section 29(1)(c);
  • The promotion is carried out in accordance with the laws of that designated country or territory;
  • Prior notice is given to the Guernsey Financial Services Commission (GFSC) by completion of a ‘Form EX’ and submission of the requisite documentation (and payment of a notification fee); and
  • The GFSC has issued confirmation of the exemption.

The promotion of collective investment schemes to regulated entities in the Bailiwick of Guernsey will be exempt from licence requirements if:

  • the firm does not have a permanent place of business within the Bailiwick of Guernsey;
  • the firm is an entity established in a country or territory listed in the first column of the Schedule to the Investor Protection (Designated Countries and Territories) (Bailiwick of Guernsey) Regulations 2017 (the United Kingdom is so designated);
  • the promotion is carried out in accordance with the laws of that designated country or territory;
  • the promotion is carried out to regulated entities which are persons licensed to carry on business under any of the following laws:
    • the POI Law;
    • the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law 2000;
    • the Banking Supervision (Bailiwick of Guernsey) Law 1994;
    • the Insurance Business (Bailiwick of Guernsey) Law 2002; or
    • the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law2002; and
  • written notice of the date from which the firm intends to carry out the promotional activity is given to the GFSC by completion of a short notification form on the GFSC’s website, which must include:
    • the name of the entity;
    • its principal place of business;
    • a contact email;
    • the name of the supervisory authority; and
    • the date of intention to start promotion.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.8
Is the appointment of local marketing entities required in your jurisdiction?
Guernsey

Answer ... This is not required (if the promoter has another means of permitted marketing as set out in this section); however, an overseas promoter does not require a POI licence if it engages the services of a person or entity that is licensed to carry on promotion in Guernsey (a ‘POI licensee’) and the POI licensee carries out the promotion in Guernsey on the overseas promoter’s behalf, provided that the overseas promoter enters into the service contract with the POI licensee outside of Guernsey.

For more information about this answer please contact: Paul Wilkes from Collas Crill
5.9
Is it possible to market alternative investment funds to retail investors in your jurisdiction? If so, are there specific requirements?
Guernsey

Answer ... With the appropriate licence, yes, it is possible to market to retail investors in Guernsey.

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