Local fund managers and custodians duly licensed may also provide services in relation to open-ended funds that are not incorporated or established in Guernsey and which do not require licensing under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. These services include management, administration and custody. The provision for these services from within Guernsey for such non- Guernsey open-ended schemes allows fund promoters to choose the domicile with which they are familiar to launch their funds and to take advantage of the time zones that meet their investors' needs.
The Commission must give specific approval to a local licensee before that licensee may commence providing services in relation to a non-Guernsey open-ended scheme. In considering whether or not to approve such a proposal, the Commission will take into account:
The protection and enhancement of the reputation of the Bailiwick as a financial centre; the general nature and specific attributes of the controlled investment business to which the proposal relates; and any other factors that the Commission considers appropriate to consider. Normally, approval will only be given if the non-Guernsey open-ended scheme would have been likely to obtain authorisation under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended.
Approvals Process for Licensees undertaking Administration and/or Management
The Commission's guidance note on the approvals process may be found here. Licensees may chose to use a two-day fast-track approach for approval or the "traditional" approval approach. A Form NGSF(2013) should be completed for the two-day fast-track approach and a Form NGS(2013) for the "traditional" approach.
Approvals Process for Licensees undertaking Custody
Notification of intention to act should be made to the Commission by letter which should include a confirmation that no other local licensee is acting and include a copy of the scheme particulars for review. If unknown, the Commission's normal regulatory and other checks will be undertaken on the promoters and, if appropriate, certain other parties to the scheme unless the fund may be regarded as a Qualifying Investor Fund and the local licensee chooses to apply using the fast track application regime.
Non-Guernsey open-ended schemes fall under the Licensees (Conduct Of Business And Notification) (Non-Guernsey Schemes) Rules 1994. Current fee scales are set out here.
The scheme is subject to on-going reporting requirements.
Where the non-Guernsey scheme is closed-ended, there is no fee and the scheme does not fall under the Licensees (Conduct Of Business And Notification) (Non-Guernsey Schemes) Rules 1994.