The investment sector in Guernsey provides a broad range of services including stock broking, investment advice and management, promotion, fund management, fund administration and custody of assets to an international clientele.
These activities, each of which requires a licence under the Protection of Investors (Bailiwick of Guernsey) Law 1987 (“the POI Law”), are regulated by the Commission.
There are close links with the City of London as well as institutions in the European Union, North America, Southern Africa and Asia. The Channel Islands Securities Exchange Authority Limited, providing services in both Guernsey and Jersey, is based in Guernsey.
Collective investment funds, both open and closed-end, have been an important feature of the investment sector for many years. All Guernsey domiciled funds have to 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. In addition, the sector provides services, particularly administration, to a wide range of investment funds domiciled in other jurisdictions. Promoters of Guernsey funds include leading institutions from over 55 financial centres; the Investment Supervision and Policy Division encourages new promoters to consult with them on policy and practice regarding fund proposals.
Other investment firms here provide independent advice, private client and institutional stock broking, and non-fund portfolio management.
For any proposed investment business, the Commission applies the minimum criteria for licensing set out in schedule 4 to the POI Law.