Cannabis Funds10th June 2020
The Commission has been approached by the Commercial Bar Association as well as a number of law firms regarding its appetite to register or authorise collective investment schemes which would make cannabis related investments under section 8 of the Protection of Investors (Bailiwick of Guernsey) Law, 1987.
Different jurisdictions around the world have different positions in relation to the legality or otherwise and the production of cannabis or cannabis related products.
The Commission would never countenance an authorised or registered collective investment scheme investing in something which would be illegal either in the jurisdiction of the asset or in the Bailiwick of Guernsey.
The Commission would expect the directors of the fund, the administrator and the promoter to give careful consideration to, and obtain legal advice on, both the legality of the investment in the jurisdiction where the investment is made and, in particular issues relating to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 and the Misuse of Drugs (Bailiwick of Guernsey) Law, 1974.
Subject to the Commission’s normal requirements and processes in relation to the authorisation or registration of collective investment schemes and to the above, the Commission would be willing to consider applications for registration or authorisation of a collective investment scheme which invested in the following classes of cannabis related investments:
a) Synthetic or biosynthetic production of cannabinoids.
b) Pharmaceutical research, development and sales.
c) Medical research, development and sales.
d) Production solely for the purposes of medical, pharmaceutical or wellness sectors.
e) Wellness CBD products.
The Commission would not consider collective investment schemes where one of the investment classes was the production, sale or marketing of recreational cannabis products.