Standard Track Licensing
Licences are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 ("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 businesses 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.
Specific criteria and principles
The following information is in addition to the guidance found at New Applicants.
Licence applications will only be processed for entities that have definite and early plans to conduct a controlled investment business. The applicant's proposed business activities (as detailed in the business plan), along with the categories and restricted activities requested in the application form must be consistent and relevant to the proposed business.
Principal Managers and general partners
Standard track licence applications will only be processed for parties where the first fund that they intend to manage has achieved at least "outline" authorisation. The licence will normally be granted on the same day that the fund receives authorisation.
Resources and delegation
The applicant is required to have adequate resources in terms of personnel, policies, procedures, premises, and systems to conduct operations including:
- 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 capabilities.
Financial resources requirement
The requirement must be met as scheduled in The Licensees (Capital Adequacy) Rules and Guidance, 2021.
Investment licence application pack
The licence application pack must contain:
Application Form and supporting documentation
Application form and supporting documentation: Scan the fully completed application form signed and dated by the relevant officers of the applicant and supporting documentation, as itemised in the application form, together with an explanatory covering letter scheduling the contents and send electronically to [email protected].
Beneficial owner evidence
Copies of authorisation or incorporation certificates relating to the beneficial owners of the applicant may be requested. For natural persons, see Personal Questionnaire ("OPQ") and the Online Application ("OA") below.
Where management of a licensee has been delegated in total or in part, a copy of the relevant agreement(s).
Confirmation that the applicant has been incorporated or established, as appropriate.
The fee is non-refundable.
Online Personal Questionnaire (“OPQ”) and Online Appointment ("OA")
OPQs and/or OAs 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, Money Laundering Compliance Officer, Compliance Officer, or manager of the applicant.
Overseas applicants must provide English translations of the financial statements submitted as part of the application process.
Copies of brochures or fund particulars of existing funds produced by the applicant or fund promoter with which the applicant is connected may also be requested.
Documentary confirmation that share capital has been received.
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion and/or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
We aim to respond to applicants within 28 business days of receipt of a fully completed application pack.
The response time may be advanced or substantially delayed depending on the quality of the submitted application pack.
We will send a written response detailing any matters that require expansion and/or clarification to enable the application to be referred to a decision-maker.
Successful applicants will be issued with a licence in the form of a letter. This will set out the categories and restricted activities that the licensee may undertake.
Any non-standard conditions which are to be imposed on the licence will be scheduled in the letter. Non-standard conditions will have been discussed with applicants in advance.
Upon licensing, the annual licence fee becomes due. This is reduced pro rata in the first year, and an invoice will be sent with the licence.