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"):
- Qualifying Investor Funds (“QIFs”);
- Registered Collective Investment Schemes (“Registered Funds”);
- Fast Track Licence Application for entities acting in respect of QIFs, Registered Funds or Overseas Collective Investment Schemes.
Fast track licence applications are only available to parties seeking to provide management services to QIFs, Registered Funds or Overseas Collective Investment Schemes.
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 scrutinised 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.
In the case of a manager of an Overseas Collective Investment Scheme the intention of the fast track regime is to enable the simultaneous consideration of a migration into the Bailiwick of Guernsey and licencing of the manager followed by the consideration of any applications to act for any open-ended schemes under the Non-Guernsey Scheme regime.
All other licence applications will need to apply and be assessed under the Commission's standard track application process.
For specific guidance on each regime, please see the below pages.