ARTICLE
22 January 2025

A Comparison Of Guernsey Funds Regimes

W
Walkers

Contributor

Walkers is a leading international law firm which advises on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. From our 10 offices, we provide legal, corporate and fiduciary services to global corporations, financial institutions, capital markets participants and investment fund managers.
Guernsey has a number of fund regulatory regimes in place, setting out the requirements to obtain the necessary permissions from the Guernsey Financial Services Commission.
Guernsey Finance and Banking

Key Takeaways

Guernsey has a number of fund regulatory regimes in place, setting out the requirements to obtain the necessary permissions from the Guernsey Financial Services Commission.

The best regulatory regime for a particular fund depends on a number of differing factors.

This guide sets out (in table form) a summary comparison of the key features of the different fund regulatory regimes available in Guernsey.

Introduction

This memorandum describes certain features of Guernsey fund regimes. It is intended to be a summary only, and is not exhaustive. It is not a substitute for detailed legal advice, which can be obtained from your usual Walkers contact or any of the Walkers partners listed at the end of this memorandum.

Private Investment Fund Registered Fund Authorised Closed-Ended Fund Authorised Open-Ended Fund
Category of fund Open or closed Open or closed Closed Open – Class A, Class B and Class Q
Type of fund vehicle Company (including PCC, ICC), limited partnership or unit trust
Is fund vehicle regulated? Yes – very light touch Yes – light touch Yes Yes – level varies between the classes
Guernsey regulated manager required? Not mandatory, except for "Manager PIF" Not mandatory Not mandatory Not mandatory
Regulatory application timeframe One business day (any manager licence done at same time) Three business days (plus 10 business days for any manager licence) Six to eight weeks (plus four weeks for any manager licence), except that Qualifying Investor Fund is three business days (plus 10 business days for any manager licence) Six to eight weeks (plus four weeks for any manager licence)
Investor restrictions

Manager PIF – max 50 investors (max 30 new investors over 12 months); only investors able to sustain loss; no limits on marketing QPI PIF – max 50 investors; only "qualifying private investors"; offers limited to 200 investors

Family PIF – investors must be part of same "family group"

None None, except that only "qualified investors" can invest in "Qualifying Investor Funds" None, except that only "qualifying professional investors" can invest in a Class Q Fund
Guernsey tax treatment of fund vehicle Company and unit trust – 0% or exempt Limited partnership – not taxable
Economic substance rules Fund vehicle is exempt from economic substance requirements, unless it is a "self-managed fund" Licensed manager is subject to economic substance requirements
Local directors of corporate fund required? No – but economic substance requirements apply if "self-managed fund"
Other local service providers Administrator and custodian (if openended) Administrator and custodian (if openended) Administrator Administrator and custodian
Information memorandum content requirements None, except that QPI PIF investors must be provided with and acknowledge a disclosure statement covering risk disclosures, the regulatory status of the PIF and investor suitability Yes Yes Yes
AIFMD – eligible for marketing in UK or EU? Yes
Audit requirement Yes
Reporting to investors

Accounts required

Other reports allowed

Accounts required

Other reports allowed

Accounts required

Other reports allowed

Accounts and annual reports required

Half-yearly reports for Class A Fund

Reporting to Guernsey regulator Very limited Limited Limited More detailed
Regulatory requirements applicable to Guernsey manager None Audit, capital adequacy and conduct of business requirements Audit, capital adequacy and conduct of business requirements Audit, capital adequacy and conduct of business requirements
Vehicle available for Guernsey Green Fund and Natural Capital Fund regimes? Yes Yes Yes Yes
Regulatory fee - application

£4,795 – fund

£3,080 – manager

£4,790 – fund

£3,080 – manager

£4,235 – fund (£4,795 for Qualifying Investor Fund)

£3,080 – manager

£4,795 – fund

£3,080 – manager

Regulatory fee - annual

£4,235 – fund

£2,205 – manager

£4,235 – fund

£2,205 – manager

£4,235 – fund

£2,205 – manager

£4,235 – fund

£2,205 – manager

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.

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