Fund Rules and Guidance
Listed below are all the principal rules and guidance for funds.
- The Authorised Collective Investment Schemes (Class A) Rules 2008
- The Collective Investment Schemes (Class A) Rules 2002
- The Collective Investment Schemes (Compensation of Investors) Rules 1988 (As Amended)
- Guidance note on independence of manager and trustee of Class A Investment Schemes
- The Authorised Collective Investment Schemes (Class B) Rules and Guidance, 2021
- The Collective Investment Schemes (Qualifying Professional Investor Funds) (Class Q) Rules and Guidance, 2021
- The Authorised Closed-ended Investment Schemes Rules and Guidance, 2021
- The Registered Collective Investment Scheme Rules and Guidance, 2021
- The Prospectus Rules and Guidance, 2021
- The Private Investment Fund Rules and Guidance (2), 2021
- The Guernsey Green Fund Rules and Guidance, 2021
- The Natural Capital Fund Rules and Guidance, 2022
- Guidance Notes - Pricing Controls in Respect of Open-Ended Collective Investment Schemes
- Guidance in respect of Qualifying Investor Funds
- Guidance in respect of Registered Collective Investment Schemes
- Guidance for Authorised and Registered Collective Investment Schemes on Measures to Counter the Risk of Greenwashing
- Notice regarding the suspension of the authorisation and registration of funds
Approach To Supervision
The Investment, Fiduciary and Pension Division supervises its Designated Administrators and Designated Custodians ("Designated Persons") by conducting regular desk based monitoring (off site monitoring) supplemented by periodic inspections (onsite monitoring).
Desk Based Monitoring
Designated Persons are required to comply with the Licensees (Conduct of Business) Rules and Guidance, 2021 and the notifications stipulated therein. In addition, Designated Persons are required to comply with the Licensees (Capital Adequacy) Rules and Guidance, 2021. The Designated Persons are also required to comply with the relevant fund rules.
In addition to immediate and annual notification requirements under the rules, the Designated Administrators of all authorised and registered schemes are required to submit quarterly statistical returns regarding the schemes managed, and to supply details of any unresolved complaints against the designated persons; these must be notified to the Commission.
On-site Engagement Visits
The Investment, Fiduciary and Pension Division performs regular on-site visits to its Designated Persons. These enhance the Division's understanding of the licensee's business and also enable a review of the risk management systems and internal controls in operation to ensure compliance with the Licensees (Conduct of Business) Rules and Guidance, 2021 and the various fund rules applicable in respect of the funds to which the licensee provides services.
Changes to Information Particulars
The following note is intended to clarify the Commission’s expectations in circumstances where amendments are to be made to the Information Particulars of an Authorised Closed-Ended Collective Investment Scheme or a Registered Collective Investment Scheme. For the avoidance of doubt the term “Information Particulars” in the following note refers to the Information Particulars by whatever name they are known, including: Prospectus, Scheme Particulars, Offering Memorandum, Explanatory Memorandum, Term Sheet, Admission Document, Subscription Agreement, Listing Particulars, Application Form, or any other equivalent documents.
Authorised Closed–Ended Collective Investment Schemes:
Rule 5.1(2)(a)(ii) of the Authorised Closed-Ended Investment Schemes Rules and Guidance, 2021 (“the Authorised CEIS Rules”) requires a Designated Administrator to make an immediate notification - by means of a written notice - to the Commission of a proposed material change to the Information Particulars of an Authorised Closed-Ended Collective Investment Scheme.
The Commission’s expectation is for the covering letter accompanying such notification to briefly, but concisely, set out the material changes that have been made in the amended document from the current version (i.e. the version most recently submitted to the Commission). For the avoidance of doubt, this expectation remains, even if a “black-lined” version tracking the changes is provided. This is because, as appreciated, such tracked copies are not always of help where documents have been subject to significant changes.
Within the covering letter, the Designated Administrator should also provide confirmation that the contents of the amended document contain all of the relevant disclosures required by Rule 4.1(1) and Schedule 1 of the Authorised CEIS Rules. In this respect, Designated Administrators might find that the document disclosure checklist contained within the Commission’s Form APC is of help in their checking that the appropriate disclosures are included in any amended documents. It is not expected that the checklist form should actually be completed and submitted.
Details of the communications with existing shareholders in respect of the matters which are the subject of the changes (in accordance with 4.1(2) of the Authorised CEIS Rules) should also be copied to the Commission.
A clean copy of the final version of the amended document, which has been certified as a true copy of the original, should be provided to the Commission as soon as it is available.
It should be noted that under the Authorised CEIS Rules, the Commission is not required to issue any form of “approval” in respect of such amendments. No such “approvals” will be issued.
Registered Collective Investment Schemes:
Rule 4.1(1) of the Registered Collective Investment Scheme Rules and Guidance, 2021 (“the Registered CIS Rules”) requires Information Particulars in respect of a Registered Collective Investment Scheme to be prepared, which shall at least contain the matters set out in the Prospectus Rules and Guidance 2021 (“the Prospectus Rules”). For the avoidance of doubt, the Information Particulars only require the disclosures specified in Parts 2 and 3 of the Prospectus Rules.
Rule 5.2(1) of the Registered CIS Rules requires a Designated Administrator to notify the Commission annually of any change in respect of the information contained in the Scheme's application for registration (or a confirmation of no changes, if applicable). Furthermore, 5.1 of the Prospectus Rules includes requirements for investors and the Commission to be notified immediately / as soon as practicable in respect of changes to certain information included in a prospectus.