Regulatory permissions are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended ("the POI Law").
Associated legislation, codes and guidance
Applicants are advised that further relevant information can be accessed from 'Legislation and Guidance' in the Investment Supervision section of our website.
Applicable financial services
The investment sector in the Bailiwick provides a broad range of services including investment advice and management, promotion, fund management and administration, custody of assets to an international clientele and stockbroking. The Channel Islands Securities Exchange Authority Limited providing services in both Guernsey and Jersey, is based in Guernsey.
The term 'Scheme' in investment regulatory laws, rules and regulations has similar meaning to the term 'Fund'. To illustrate the foregoing, a mutual fund and a collective investment scheme have similar attributes.
Guernsey-established collective investment funds
Both open-ended and closed-ended funds have been established as a major investment segment in the Bailiwick for many years. All Guernsey domiciled funds must be authorised by, or registered with, the Commission, and all must be administered by a Guernsey-licensed administrator; open-ended funds must also have a Guernsey licensed custodian.
Promoters of Guernsey funds
Promoters represent many institutions based in other leading financial services centres internationally. New promoters must familiarise themselves with policy and practice of fund proposals within the Bailiwick prior to submitting an application.
The investment sector also provides services, particularly administration, to a wide range of investment funds domiciled in other jurisdictions.
Licensees provide a diverse range of services including:
- Alternative Investment fund management and administration;
- Other fund management and administration;
- Custody of assets;
- Independent advice;
- Private client and institutional stockbroking;
- Non-fund portfolio management.
The following are key products managed and administered by licensees, for which further details can be accessed from the left-hand margin tabs on this website:
- Manager-Led Product;
- Private Investment Fund.
Other investment vehicles
The following is illustrative of some technical investment vehicles for which applications may be submitted, however, it would be expected that applicants take appropriate legal advice before submitting an application.
These investment vehicles are generally formed to invest and divest in the same investments and at the same time as the main fund. They are formed under substantially the same terms as the main fund but with specific differences to accommodate the requirements applicable to the investors in the parallel fund.
Alternative Investment Vehicles
These are special purpose investment vehicles are formed to accommodate the structuring needs of the fund (or its investors) in connection with one or more particular investments. Unlike a parallel fund, which is designed as an umbrella entity for investors to participate as an alternative to the main fund, an alternative investment vehicle is formed so that investors who have subscribed to the main fund (or a parallel fund) can take advantage of efficient structures to hold specific assets if the fund is not the optimal investment vehicle for a particular investment.
These special purpose vehicles are formed by a fund to accommodate investment in the fund by one or more investors.
These are investment vehicles formed by the sponsor to co-invest alongside the fund (and its parallel funds) in specific fund investments. Unlike parallel funds or alternative investment vehicles, these do not necessarily have the same investment terms or fees as the fund.
Private Equity vehicles
Parallel funds, alternative investment vehicles, feeder funds and co-investment vehicles may choose to be established in Guernsey and administered by the same Designated Administrator/Manager as a private equity fund. Should one or more of these vehicles have the attributes of a collective investment scheme, as defined in the POI Law, and are intimately connected to the private equity fund, we will consider authorising/registering a basket of entities as one collective investment scheme. Please note a robust case would need to be made as to why a vehicle should form part of a basket of entities rather than be separately authorised/registered under the POI Law.
We recommends that any application for authorisation/registration of a private equity fund consisting of a basket of entities be made in a "generic" name, relevant to all of the constituent parts, rather than in the name of one of the constituent parts: constituent parts would be listed thereunder. The foregoing facilitates additions (or removal) of further entities in a meaningful manner.
Offering documentation relating to such a fund should reflect the fact that each constituent entity is part of a larger fund consisting of other entities, and also that any authorisation/registration has been granted to the fund as a whole, rather than specifically to certain entities constituting such a fund.