The MLP ensures a proportionate risk-based level of regulation, maintaining reporting requirements. By placing the regulations on the AIFM only, duplication of regulatory requirements over several entities is avoided and within 24 hours of receipt of a notification the GFSC will license open-ended or closed-ended funds as well as general partners or managers formed solely for the purpose of such funds.
Announcing the launch of the MLP at the Guernsey Funds Forum in London, Guernsey Finance Chief Executive Dominic Wheatley said: "We see the MLP as offering a very attractive vehicle for managers needing substance in the Island, an area in which we expect to grow. Once an AIFM has been licensed by the Guernsey Financial Services Commission, they will then be able to launch new partnership structures and corporate funds by simple notification. Capital will be concentrated at the AIFM level. This will facilitate the quick and efficient launch of new funds with a minimum requirement for red tape but with no diminution of the quality of regulatory oversight."
Mariana Enevoldsen, director at Heritage International Fund Managers commented: "We welcome the development of the MLP which exemplifies what can be achieved when the regulator and industry work together. The MLP will ensure that Guernsey remains a competitive jurisdiction and comes at a time when other centres such as Malta and Luxembourg have announced similar products utilising the same approach."
For further information on the MLP, click here