GFSC Fund Guidance Welcomed

by Robin Pilgrim, LawAndTax-News.com, London

12 November 2003

Representatives from Guernsey's fund industry have welcomed new Guernsey Financial Services Commission (GFSC) guidance on closed-ended investment funds, released on Monday.

In a statement, chief executive of the Guernsey Promotional Agency (GPA), John Bridle explained that:

"With closed-ended funds business at almost £20 billion and double digit growth over the 3 month period to the end of September, the GFSC guidance note and statement on the sector is timely and supportive."

Meanwhile, chairman of the Guernsey Fund Managers Association, Chris Hill announced that:

"I welcome particularly the approach taken with the guidance in section one, which will provide a helpful benchmark for promoters and their lawyers as they prepare new fund documentation."

The guidance was divided into two sections, one concerned with minimum disclosure requirements, and the other with ongoing notifications and obligations.

However, in issuing the notes, the GFSC explained that:

"In applying these policies, the Commission remains committed to the flexibility it has always adopted in dealing with fund applications. Cases are considered on an individual basis and the level and extent of disclosure will depend on factors such as the nature of the fund and its investments, ultimate investor base and minimum investment levels."

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