Public Announcement - Qualifying Investor funds Regime
7th February 2005In the second half of 2004, the Guernsey Financial Services Commission announced that it was consulting on proposals to streamline the approval process for both open and closed ended funds aimed at professional, experienced and knowledgeable investors. Following wide spread support for the proposals set out in the Commission's paper, the Commission has today introduced the new regime with immediate effect.
The effect of the proposal is that the Commission undertakes to grant the required fund approval within 3 working days provided that an appropriately licensed Guernsey applicant has certified to the Commission that:-
the fund will be restricted to professional, experienced and knowledgeable investors (Qualified Investors);
the applicant has conducted due diligence on the promoter and associated parties and has found them to be fit and proper;
the applicant is satisfied as to the fund's economic rationale and the disclosure of any risks associated with the investment vehicle.
The certification document to be supplied by the Guernsey licensee and guidance notes on the due diligence associated with QIF applications is available from the Investment Business Division.