New PIF rules to bolster Guernsey’s funds offering
23 April 2022 Guernsey
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Amendments to the rules surrounding Guernsey’s private investment fund (PIF) options are set to enhance Guernsey’s funds offering by enabling more investors to take advantage of the structure.
The sector regulator, the Guernsey Financial Services Commission, published a consultation paper last year proposing to amend the rules and after receiving feedback, took the decision to amend the rules which are effective immediately.
While the current approach to registering a PIF will not change, the revised rules will provide new routes to enable a PIF to be created without an attached Protection of Investors Law licensed manager.
In order to use the second path, all investors will need to meet criteria aimed at protecting more vulnerable investors, Guernsey Finance explains.
Guernsey Finance notes that the third path will enable a PIF to be created as a bespoke private wealth structure requiring a family relationship between investors.
Christopher Jehan, chairman of the Guernsey Investment Funds Association (GIFA), comments: “We are pleased to see that the commission has enabled multiple routes towards achieving the same goal.”
Jehan continues: “The PIF has already proven to be a popular product in the Guernsey fund suite and the increased flexibility can only help to increase the appeal of the product. Over the past year, we have seen increasing interest in Guernsey as a fund domicile and the PIF is a key tool in our toolbox.”
Guernsey Finance chief executive Rupert Pleasant says the decision was another demonstration of Guernsey’s pragmatic approach which recognised the needs of the local fund industry and its clients to respond flexibly to their clients’ needs.
“This is a fantastic development for the local fund sector and will ensure that the excellent flow of funds business continues well into the future,” Pleasant adds.
Go to page 18 of Issue 263 of Asset Servicing Times to discover more about Guernsey’s evolving fund industry.
The sector regulator, the Guernsey Financial Services Commission, published a consultation paper last year proposing to amend the rules and after receiving feedback, took the decision to amend the rules which are effective immediately.
While the current approach to registering a PIF will not change, the revised rules will provide new routes to enable a PIF to be created without an attached Protection of Investors Law licensed manager.
In order to use the second path, all investors will need to meet criteria aimed at protecting more vulnerable investors, Guernsey Finance explains.
Guernsey Finance notes that the third path will enable a PIF to be created as a bespoke private wealth structure requiring a family relationship between investors.
Christopher Jehan, chairman of the Guernsey Investment Funds Association (GIFA), comments: “We are pleased to see that the commission has enabled multiple routes towards achieving the same goal.”
Jehan continues: “The PIF has already proven to be a popular product in the Guernsey fund suite and the increased flexibility can only help to increase the appeal of the product. Over the past year, we have seen increasing interest in Guernsey as a fund domicile and the PIF is a key tool in our toolbox.”
Guernsey Finance chief executive Rupert Pleasant says the decision was another demonstration of Guernsey’s pragmatic approach which recognised the needs of the local fund industry and its clients to respond flexibly to their clients’ needs.
“This is a fantastic development for the local fund sector and will ensure that the excellent flow of funds business continues well into the future,” Pleasant adds.
Go to page 18 of Issue 263 of Asset Servicing Times to discover more about Guernsey’s evolving fund industry.
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