Guernsey Regulator Puts Streamlined Fund Proposal To Public Consultation

by Jason Gorringe, Tax-News.com, London

18 October 2004

The Guernsey Financial Services Commission has today commenced public consultation on a proposal to streamline the approval process for both open and closed-end funds aimed at professional, experienced and knowledgeable investors.

The proposals aim to grant the required fund approval within three working days, provided that an appropriately licensed Guernsey applicant has certified to the Commission that:

• they have conducted due diligence on the promoter and associated parties, and find them to be fit and proper;
• the fund will be restricted to professional, experienced and knowledgeable investors; and
• they are satisfied about the fund's economic rationale and that any risks associated with the vehicle are clearly disclosed.

"The investment funds sector in Guernsey goes from strength to strength,” noted Peter Neville, Director General of the Guernsey Financial Services Commission.

He continued:

“This latest initiative, developed in conjunction with the investment funds industry, is designed to assist promoters and sponsors of investment vehicles aimed at professional, experienced and knowledgeable investors by giving greater certainty over the approval timetable, while maintaining the fundamental qualities which have made the investment fund sector such an important element of financial services in Guernsey.”

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