The Guernsey Financial Services Commission (GFSC) has confirmed the approval of its new regime of fast tracked, self-regulated Private Investment Funds.
Following a short consultation process which closed on 10 November, the Private Investment Funds (PIFs) are now available. GFSC announced its plans earlier this year, in a special video interview with International Investment as reported, after agreeing a deal with the regulator to address a “perceived gap in the range of fund products available in the Bailiwick when there is a close relationship between investors and management”. This removes the formal requirement for information particulars and reduces the application process to one day.
The PIF was officially announced at the Guernsey Funds Forum, pictured above, by GFSC head Dominic Wheatley.
Under the new regime, PIFs can be either open or closed-ended; they will be subject to a set of rules governing aspects such as conflicts of interest and the submission of statistical returns and audited accounts but they are restricted to containing no more than 50 legal or natural persons with an economic interest. Additionally, PIFs will be registered funds and will require a licensed manager to provided warranties on the fitness of the promoter and the ability for the investors to assume loss.
Fund sector growth
Mariana Enevoldsen, director of Heritage International Fund Managers, has welcomed the move and is pleased to see Guernsey’s fund sector continue “significant growth” “By constructing a new regime for Private Investment Funds, the GFSC has demonstrated its commitment to the continual evolution of this important sector for the island,” she said.
“We believe that the introduction of Private Investment Funds will ensure that Guernsey remains competitive in an increasingly global marketplace and is therefore welcomed by Heritage. While the new regime maintains the highest levels of corporate governance, it presents a considerable opportunity both for those wishing to launch vehicles of this nature and for Guernsey’s financial services industry.”