Under the new regime, Private Investment Funds can be either open or closed-ended; they will be subject to a set of rules governing aspects such as conflicts of interest and the submission of statistical returns and audited accounts but they are restricted to containing no more than 50 legal or natural persons with an economic interest. Additionally, Private Investment Funds will be registered funds and will require a licensed manager to provided warranties on the fitness of the promoter and the ability for the investors to assume loss.
Commenting on this development, Mariana Enevoldsen, director of Heritage International Fund Managers said, “Guernsey’s fund sector continues to see significant growth and the Bailiwick’s position as a leading jurisdiction for those seeking to bring funds to market is well-established. By constructing a new regime for Private Investment Funds, the GFSC has demonstrated its commitment to the continual evolution of this important sector for the island.
“We believe that the introduction of Private Investment Funds will ensure that Guernsey remains competitive in an increasingly global marketplace and is therefore welcomed by Heritage. While the new regime maintains the highest levels of corporate governance, it presents a considerable opportunity both for those wishing to launch vehicles of this nature and for Guernsey’s financial services industry.”