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Fast Track Regimes
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Applicable law
Regulatory permissions are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law").
The POI Law does not permit licences to be issued to individuals. Entities seeking to be licensed must familiarise themselves with the scope of Schedules 1 and 2 to the POI Law to identify which categories and restricted activities may be relevant to the prospective business to be undertaken.
Applicants applying to be licensed must read and understand the minimum criteria for licensing set out in Schedule 4 to the POI Law.
Regime
There are 4 fast track application types in respect of Guernsey regulated entities:
- Private Investment Funds ("PIFs"): Please follow this link for the PIFs regime.
- Qualifying Investor Funds (“QIFs”);
- Registered Collective Investment Schemes (“Registered Funds”);
- Fast Track Licence Application for entities acting in respect of QIFs or Registered Funds.
Fast track licence applications are only available to parties seeking to provide management services to QIFs or Registered Funds. To enable fast track processing, the intention of the regime is to enable a fund application, either QIF or Registered Fund, and a licence application to be submitted for simultaneous consideration by Authorisations.
Applications for licensing will, however, be accepted in advance of a fund application for Guernsey managers needing to meet the requirements of the EU National Private Placing Regime. In such circumstances, a business plan must be submitted, together with the licence application that includes the following details:
- Proposed fund objectives;
- Fund strategy;
- Asset classes;
- Target investor;
- Geographical marketing sector.
A licence will be granted, if appropriate, based on that information and the expectation that a fund application will follow shortly thereafter. When the fund application is submitted, it will be scrutinsed to ensure that it reflects the information provided in the Applicant's Business Plan at the licence application stage. In the absence of controlled investment business, being conducted within 12 months from licensing, in accordance with the POI Law, the licence will be cancelled.
All other licence applications will need to apply and be assessed under the Commission's standard track application process.
Specific criteria and principles
The following information is in addition to the guidance found at 'New Applicants'.
ALL APPLICANTS
Licence applications will only be processed for entities that have definite and early plans to conduct controlled investment business. The applicant's proposed business activities detailed in its business plan and the categories and restricted activities requested in the application form must be consistent and relevant to that proposed business.
ADMINISTRATORS’ DECLARATIONS
The fast track application form (Form FTL) requires the proposed administrator of the applicant to make specific declarations. The Commission has a statutory duty in considering applications for licences under the POI Law and the scrutiny of complete and accurate submissions, together with the relevant declarations which will be used by the Commission in expediting the formal application process.
RESOURCES AND DELEGATION
The applicant is required to have adequate resources of personnel, policy, procedures, premises and systems to conduct operations including:
- Record-keeping;
- Compliance;
- Anti-money laundering measures;
- Internal control and other systems.
If the applicant proposes to delegate some responsibilities to other service providers, the arrangements must be acceptable to the Commission and demonstrate that the delegate has the necessary capability.
FINANCIAL RESOURCES REQUIREMENT
The requirement must be met as scheduled in the Licensees (Capital Adequacy) Rules 2010.
Application pack
The fast track licence application pack must contain:
FORM FTL
The form is to be completed, signed and dated by the proposed administrator of the applicant and must be submitted together with the licence application form.
APPLICATION FORM
A fully completed Form RA/1 must be submitted together with all of the supporting documentation requested in that form. The Form RA/1 must be fully completed, signed and dated by two authorised signatories of the applicant.
APPLICATION FEE
The fee is non-refundable; Fees
ESTABLISHMENT
Confirmation that the applicant has been incorporated or established, as appropriate.
DELEGATION AGREEMENTS
Where management of a licensee has been delegated in total or in part, a copy of the relevant agreement(s).
DUE DILIGENCE
A copy of the prospective administrator’s due diligence and assessment in support of the declarations in the Form FTL, of the fitness and propriety of the applicant. We will undertake focused scrutiny of the submission to test the validity of the declarations provided.
EXISTING PROMOTER CONNECTION
If the promoter of the connected fund is already known to the Commission as the promoter of an existing (or previous) Guernsey investment fund, we will accept confirmation of that fact, together with written confirmation that the administrator holds up to date due diligence documentation.
PERSONAL QUESTIONNAIRE (“OPQ”)
OPQs must be submitted through the Online PQ Portal for each natural person who is a beneficial owner, controller, partner, director, company secretary, money laundering reporting officer, compliance officer or manager of the applicant(s).
SHARE CAPITAL
Documentary confirmation that share capital has been received.
Application process
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Timeframe
INDICATIVE TIMEFRAME
We will consider the application for a fast-track licence within 10 business days of receipt of a fully completed application pack. If the application pack is incomplete the application clock will not commence until all documentation and information has been submitted.
APPLICATION QUALITY
Any minor queries resulting from the Commission's initial assessment of the application will be referred back to the prospective Guernsey administrator acting on behalf of the applicant with the aim that resolution of the issue can be achieved within the 10 day period.
WRITTEN RESPONSE
We reserve the right to reset the application clock if the nature and number of issues requiring expansion and clarification are substantial.
Application conclusion
LICENCE
Successful applicants will be issued with a licence by form of letter, setting out the categories and restricted activities the licensee may undertake.
CONDITIONS
Any non-standard conditions which may be imposed on the licence will be scheduled in the letter. Non-standard conditions will have been discussed with applicants in advance.
ANNUAL FEE
Upon licensing, the annual licence fee becomes due, which is reduced pro rata in the first year: an invoice will be sent with the licence.
Qualifying Investors Funds ("QIFs") – Fast Track
Applicable law
Regulatory permissions are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law").
Applicable rules
Depending on the type of scheme for which application is made, one of the following fund rules will also apply:
- The Authorised Collective Investment Schemes (Class B) Rules, 2013;
- The Collective Investment Schemes (Qualifying Professional Investors)(Class Q) Rules 1998;
- The Authorised Closed-Ended Investment Schemes Rules 2008.
Guidance
For full details of the QIF application process please refer to the Guidance on Qualifying Investor Funds.
Specific criteria and principles
The following information is in addition to the guidance found at 'New Applicants'.
APPLICABLE FUNDS
Authorised open-ended and closed-ended schemes can apply as QIFs. The following also applies:
- Only qualified investors are permitted to invest in a QIF;
- A qualified investor is deemed able to evaluate the risks and strategy of investing in a QIF and to bear the economic consequences of investment in the QIF including the possibility of any loss arising from the investment;
- Application Form QIF must be signed by the proposed designated manager of the scheme.
DECLARATIONS
Application Form QIF contains declarations given by the proposed designated manager to the Commission and the Commission attaches great importance to these declarations. It expects applicants to be able to demonstrate that they have documentary evidence to support the declarations given, and to be able to produce that evidence immediately should the Commission request it. Applicants who cannot substantiate their applications may find themselves excluded from participation in the QIF regime.
QIF Application Pack
The QIF application pack must contain:
APPLICATION FORM
A fully completed, signed and dated Form APB/APC/APQ, as appropriate, together with Form GFA.
APPLICATION FEE
The fee is non-refundable; Fees
PROSPECTUS
The final version together with the investor application form, subscription agreement or equivalent documents.
CONSTITUTIVE DOCUMENTS
Evidence that the scheme has been incorporated (if a company) or otherwise established to include the articles of incorporation, trust deed or limited partnership agreement.
AGREEMENTS
All material agreements entered into by the scheme.
CLASS B SCHEMES
Receipt of a certificate from the Manager or from an approved law firm certifying the information scheduled in the Class B Rules.
CLASS Q SCHEMES
Receipt of a certificate from the Manager certifying the information scheduled in the Class Q Rules.
CONTROLLERS, DIRECTORS AND SENIOR OFFICERS OF THE PROMOTER
Must submit OPQ's through the Online PQ Portal.
Application process
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Timeframe
INDICATIVE TIMEFRAME
The Commission will declare the scheme authorised within three business days of receiving the QIF application. If the application pack is incomplete the application clock will not commence until all documentation and information has been submitted.
APPLICATION QUALITY
Any minor queries resulting from the Commission's initial assessment of the application will be referred back to the prospective Guernsey administrator acting on behalf of the applicant with the aim that resolution of the issue can be achieved within the three day period.
WRITTEN RESPONSE
We reserve the right to reset the application clock if the nature and number of issues requiring expansion and clarification are substantial.
Application conclusion
AUTHORISATION
Successful applicants will be issued with authorisation by way of letter.
CONDITIONS AND DEROGATIONS
Any formal conditions to be imposed upon the authorisation of open-ended investment schemes or any derogations from or modifications of the rules will be incorporated into the final authorisation letter.
ANNUAL FEE
Upon licensing, the annual fee becomes due, which is reduced pro rata in the first year: an invoice will be sent with the authorisation letter.
Registered Collective Investment Schemes – Fast Track
Applicable law
Regulatory permissions are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law").
Applicable rules
The Registered Collective Investment Scheme Rules 2015.
Guidance
For full details of the Registered Funds application process refer to the guidance.
Specific criteria and principles
The following information is in addition to the guidance found at 'New Applicants'.
APPLICABLE FUNDS
In order to consider granting the requisite registration to the Registered Funds the Commission must receive a copy of the application form (Form REG), which must be signed by the proposed designated manager of the scheme.
DECLARATIONS
The Form REG contains declarations given by the proposed designated manager to the Commission and the Commission attaches great importance to these declarations. It expects applicants to be able to demonstrate that they have documentary evidence to support the declarations given, and to be able to produce that evidence immediately should the Commission request it. Applicants who cannot substantiate their applications may find themselves excluded from participation in the Registered Fund regime.
Application pack
The application pack must contain:
APPLICATION FORM
A fully completed, signed and dated Form REG.
APPLICATION FEE
The fee is non-refundable; Fees
PROSPECTUS
The final version together with the investor application form, subscription agreement or equivalent documents.
CONSTITUTIVE DOCUMENTS
Evidence that the scheme has been incorporated (if a company) or otherwise established to include the articles of incorporation, trust deed or limited partnership agreement.
AGREEMENTS
All material agreements entered into by the scheme.
CONTROLLERS, DIRECTORS AND SENIOR OFFICERS OF THE PROMOTER
Personnnel who will exercise control or a significant function relating to the application must submit OPQ's through the Online PQ Portal.
Application process
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Timeframe
INDICATIVE TIMEFRAME
The Commission will declare the scheme registered within three business days of receiving the Registered Fund application. If the application pack is incomplete the application clock will not commence until all documentation and information has been submitted.
APPLICATION QUALITY
Any minor queries resulting from the Commission's initial assessment of the application will be referred back to the prospective Guernsey administrator acting on behalf of the applicant with the aim that resolution of the issue can be achieved within the three day period.
WRITTEN RESPONSE
We reserve the right to reset the application clock if the nature and number of issues requiring expansion and clarification are substantial.
Application conclusion
REGISTRATION
Successful applicants will be issued with registration by way of letter.
CONDITIONS AND DEROGATIONS
Any formal conditions to be imposed upon the registration of closed-ended investment schemes or any derogations from or modifications of the rules will be incorporated into the final registration letter.
ANNUAL FEE
Upon registration, the annual fee becomes due, which is reduced pro rata in the first year: an invoice will be sent with the registration letter.
Investment Compartments Qualifying Investor Funds & Registered Collective Investment Schemes – Fast Track– Existing
Applicable rules
Depending on the type of scheme for which application is made, one of the following fund rules will apply, under which approval is issued:
- The Authorised Collective Investment Schemes (Class B) Rules, 2013;
- The Collective Investment Schemes (Qualifying Professional Investors)(Class Q) Rules 1998;
- The Authorised Closed-Ended Investment Schemes Rules 2008.
Specific criteria and principles
A fast track approach is available in respect of the approval of investment compartments (i.e. sub-funds, cells and share classes) of QIFs and Registered Funds.
Application Pack
APPLICATION FORM
Submission of a fully completed signed and dated Form QIFSFor Form REGSF, together with the documentation required by those forms.
APPLICATION FEE
The fee is non-refundable; Fees
Application process
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Timeframe
INDICATIVE TIMEFRAME
The Commission will issue approval to the additional compartment within three business days of receiving the application. If the application pack is incomplete the application clock will not commence until all documentation and information has been submitted.
APPLICATION QUALITY
Any minor queries resulting from the Commission's initial assessment of the application will be referred back to the prospective Guernsey administrator acting on behalf of the applicant with the aim that resolution of the issue can be achieved within the three day period.
WRITTEN RESPONSE
We reserve the right to reset the application clock if the nature and number of issues requiring expansion and clarification are substantial.
Application conclusion
APPROVAL
Successful applicants will be issued with approval by way of letter.
DEROGATIONS
Any derogation which may have been requested by the applicant prior to the application being considered will normally be included in the approval letter.
ANNUAL FEE
No pro rata fee is payable at the conclusion of the application.