Standard Track Licensing

New Applicants

Read More

Applicable law

Licences 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.

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.

Principal Managers and general partners

Standard track licence applications will only be processed for these parties when the first fund they intend to manage has achieved at least "outline" authorisation. The licence will normally be granted on the same day as the fund achieves authorisation.

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.

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] .

Application Form RA/1

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 Online Application ("OA") below.

Delegation agreements

Where management of a licensee has been delegated in total or in part, a copy of the relevant agreement(s).

Establishment

Confirmation that the applicant has been incorporated or established, as appropriate.

Application fee

The non-refundable application fee; Fees

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(s).

Financial statements

Overseas applicants must provide English translations of the financial statements submitted as part of the application process.

Promotional literature

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.

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 aim to respond to applicants within 28 business days of receipt of a fully completed application pack.

Application quality

The response time may be advanced or substantially delayed depending on the quality of the submission of the application pack.

Written response

We will send a written response detailing any matters that require expansion or clarification to enable the application to be referred to a decision-maker.

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.