EXEMPT NON-GUERNSEY SCHEMES

Under Section 29(1) of the Protection of Investors (Bailiwick of Guernsey) Law, 1987 ("the Law"), the Investor Protection (Designated Countries And Territories) Regulations 1989 and the Investor Protection (Designated Countries And Territories) (Republic Of Ireland) Regulations 1992 ("the Regulations"), Designated Territory status has been granted to:

• The UK

• Jersey

• The Isle of Man

• The Republic of Ireland

An applicant carrying on business in relation to collective investment schemes with a main place of business in any of the above does not require a licence under the Law to promote certain collective investment schemes in the Bailiwick, but must give prior notice to the Commission by completion of Form EX.

Fees are payable for schemes other than those domiciled in Jersey, an application fee and an annual fee which is reduced pro rata in the first year of approval.  Current fee scales are detailed here.

The Licensees (Conduct Of Business And Notification) (Non-Guernsey Schemes) Rules 1994 do not apply to such schemes, but there is an on-going requirement to notify the Commission by e-mail to ibdfundaccounts@gfsc.gg of any significant changes, including links to updated prospectuses and published annual report and accounts.

Schedule 2 to the Regulations defines the collective investment schemes established within each Designated territory that are covered by the Regulations. These are open-ended schemes which are essentially the equivalent of Guernsey Class A schemes. Schemes which have been recognised in the UK (for example, a UCITS scheme) are also covered in practice.

Applications

Form EX  should be completed by potential applicants which must list all applicable schemes the applicant intends to promote within the Bailiwick. The following must also be provided in respect of each scheme:

• a copy of the latest prospectus and other promotional material which will accompany the prospectus;

• a copy of the latest annual report of the scheme;

• documentary evidence from the regulatory authority in the designated country or territory that the scheme is of a class or description specified in Schedule 2 to the Investor Protection (Designated Countries And Territories) Regulations 1989 and 1992.

• the fees specified in the fee schedule. It should be noted that no fee is payable in respect of Jersey schemes.

The completed Form EX must be accompanied by the signed Declaration and Undertaking.