Offshore Europe - A Case For Non-UCITS Funds

(Investment Business Update Special November 1996)

A distinguishing characteristic of Guernsey - which is viewed as an advantage by promoters and investors alike - is being outside the European Union. This is considered an advantage for three reasons:

1. there appears to be a trend towards EU investors preferring vehicles established in well-regulated centres outside the EU, largely due to growing concern about investor confidentiality;

2. there is concern amongst some EU regulators that the Investment Services Directive will lead to regulatory arbitrage - and in this respect Guernsey is fortunate to be in a position to determine alone who should be permitted to carry on finance business in its jurisdiction; and