Regime for Private Investment Funds launched

The Guernsey Financial Services Commission has launched its regime for Private Investment Funds following a consultation process.

The application Form PIF requests both a licence, under section 4 of the Protection of Investors (Bailiwick of Guernsey) Law, and for fund registration under section 8 of the Law. Strong corporate governance is ensured through the requirement for a manager licensed under the Law. If you apply for a licence and fund, your application will be processed and turned around in one business day by the Commission.

The Private Investment Fund is a regulated product with a focus on strong corporate governance, including managing conflicts of interest.  Only the highest principles of corporate governance must be exercised in the use of this product.

The Commission has not required the Private Investment Fund to be a sub-threshold product for AIFMD and that the product may be incorporated as either a protected cell company or incorporated cell company.

This new funds regime offers fund managers greater flexibility and simplicity, removing the formal requirement for information particulars such as a prospectus in recognition of the relationship between management and investors. This ultimately reduces the cost and processing time of launching a fund.

For more details and a full explanation of the regime please click here.

If you have questions over whether a particular structure fulfils the mandatory characteristics of a Private Investment Fund please contact James at PEA who will be happy to help +44 1481 730988

by James Orrick

jamesJames holds a Masters in Corporate Governance from Bournemouth University, a BSc (Hons) in Accounting and Finance from the University of Essex, is a Fellow of the Association of Chartered Certified Accountants and an Associate of the Institute of Chartered Secretaries and Administrators.

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