On 16 November 2016, the Guernsey Financial Services Commission (“GFSC”) launched its regime for Private Investment Funds (“PIF”) in order to provide new and existing fund managers with an additional regulated but flexible and simple fund product.
The PIF, which was developed in response to market demand, recognises that certain investment funds are characterised by a relationship between management and investors that is closer than that of a typical agent. The PIF dispenses with the formal requirement for information particulars such as a prospectus in recognition of that relationship, thereby significantly reducing the cost and processing time of launching of a fund.
The PIF, which can be either closed or open-ended, should contain no more than 50 legal or natural persons holding an economic interest in the fund. A key strength of the product is that, where an appropriate agent is acting for a wider group of stakeholders such as a discretionary investment manager or a trustee or manager of an occupational pension scheme, that agent may be considered as one investor. While there is a limit imposed on the number of investors in the PIF, no attempt has been made to limit the number of investors to whom the PIF might be marketed – a feature not available under comparable regimes.
The GFSC has implemented the following regulatory protections that form part of the PIF regime:
Commenting on this development, Mark Douglas, Moore’s Head of Guernsey Fund Services, said:
Guernsey’s fund sector continues to see significant growth and the introduction of the Private Investment Fund regime demonstrates the dynamic and flexible approach of the Island to move with global market trends and demands. It is a welcome addition to fund options available in Guernsey and we believe it will be well received by both existing and new fund managers.
Moore Management is a leading specialist provider of global fund administration and management services, and the PIF regime is well suited to our ability to provide tailored solutions to meet our clients’ specific needs. With a well-established and growing presence in Guernsey, we are ideally placed to assist with all of the service requirements in the Island.
If you’d like to find out more about Guernsey Private Investment Funds, the opportunities they present and how we can help, please don’t hesitate to contact our Funds Director Andrew Maiden today:
T: +44 1481 231 868