Guernsey has announced plans to upgrade its Private Investment Fund (PIF), expanding the regime with two supplemental models.
The revisions remove the need for manager involvement and will create the most comprehensive and flexible suite of options of any private fund regime.
Go deeper with GlobalData
Typically, the fund manager makes declarations in respect of prospective investors’ ability to sustain losses, the maximum number of investors, and the completeness and accuracy of the application.
Under the two new supplemental models, the PIF now provides an alternative for qualifying investors, and a “truly private structure” for family relationships.
Describing 2020 as “an incredible year” for funds in Guernsey, Rupert Pleasant, chief executive of Guernsey Finance, said: “This is the third strategic enhancement to Guernsey’s investment funds sector announced this year, with faster track manager and LP migration regimes introduced in the summer, and with the proposed introduction of the LLC regime announced in the first quarter – testament to the successful co-ordination of strategy development in recent years.”
The PIF, introduced in November 2016, has proven a popular addition to the Guernsey funds regime amongst new and existing fund promoters.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataFollowing a consultation this year, Guernsey Financial Services Commission (GFSC) released a paper inviting comments on three complementary routes to PIF registration. The consultation will remain open until the end of January 2021.
According to Pleasant, “the PIF regime already provided a streamlined, rapid route to market for managers not looking to a large investor base”.
However, the proposed supplemental approaches from the GFSC will enhance Guernsey’s offer, establishing a new benchmark for a private fund regime.
Pleasant concluded: “These changes reflect the responsiveness of Guernsey’s regulator and its willingness to listen to the market. Its tailoring of product to the family office market – an area of growing significance for Guernsey – is commendable.”
This week, the GFSC also opened a consultation, welcoming proposed changes to its Non-Guernsey scheme regime.
The regime will transition away from the requirements for firms to seek prior regulatory approval to administer non-Guernsey schemes, to a de facto notification regime which will require only reporting to be provided via licensees’ annual returns.
