Guernsey Consults On Streamlining Consent Process For Closed-End Funds

by Philip Morton, Investors Offshore.com

11 January 2007

The Guernsey Financial Services Commission on Wednesday commenced public consultation on a proposal to streamline the consent process for closed-ended investment funds.

The main thrust of the proposal is that the Commission will grant the required fund consent under the Control of Borrowing Ordinance within three working days, provided that an appropriately licensed Guernsey service provider has certified to the Commission that:

(i) They have performed sufficient due diligence to be satisfied that the promoter and associated parties are fit and proper;

(ii) Effective procedures are in place to ensure that the fund is not offered directly by the issuer to the public within the Bailiwick of Guernsey; and

(iii) The status of the Registered Closed-ended Investment Fund is specifically referred to in the prospectus, offering document or equivalent so that it is made clear that neither the Commission nor the States of Guernsey Policy Council have reviewed the prospectus, offering document or equivalent and that neither the Commission nor the States of Guernsey Policy Council takes any responsibility for the financial soundness of the fund, or for the correctness of any of the statements made or opinions expressed with regard to it.

The full text of the GFSC consultation on streamlining the consent process for closed-end funds can be found in the Tax News Resources section.

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