Following initial discussions with the UK Financial Services Authority (“FSA”) and HM Treasury in 2006 the Investment Business Division initiated a project to revise the existing Guernsey Class A open-ended fund rules to bring them into line with more liberal developments in the European Union. The revised rules, based on the UK’s New Collective Investment Scheme Sourcebook (“UK COLL Rules”), have been considered by a working party consisting of industry representatives from the open-ended fund sector and the Investment Business Division. The Commission sought feedback from Investment licensees on the revised Class A Rules in November 2007 and further in August 2008 following the FSA’s amendments to the UK COLL Rules relating to Chapter 5 of the rules (Investment and Borrowing Powers). The feedback received during both consultation periods was considered and where appropriate was incorporated into the Class A Rules.
Following the conclusion of the consultation period the new Class A Rules will be introduced with effect from 24 November 2008.
The rules will be resubmitted to the FSA for confirmation that the rules provide equivalent protections to those accorded by the UK rules, followed by a request to HM Treasury for a new Statutory Instrument designating the rules so that the funds operating in accordance with them may be freely marketable in the UK. The Commission has been working with the FSA and HM Treasury to try to ensure that the designation is achieved as efficiently as possible.
The Commission is issuing the new Class A Rules in advance of the designation by HM Treasury to allow the establishment of new Class A schemes or the conversion of existing Class A schemes making use of the more liberal investment powers but which do not intend at present to market into the UK.
The new Class A Rules and relevant documentation and guidance relating to Class A applications
Process are available from the Investment section of the Commission’s website:
Guernsey Financial Services Commission
La Plaiderie Chambers
St Peter Port
Enquiries to : Peter Moffatt, Director of Investment Business
Tel : +44 (0) 1481 712706
Fax : +44 (0) 1481 713361
E-mail : [email protected]
10 November 2008