Collas Crill Explains… What Is A Guernsey Fund?

This is part of a series of guides in which we examine areas of Guernsey law that frequently arise in practice. Further guides will be released weekly; click here to subscribe to receive these by email.

Answering the question 'Is this a fund?' takes up a surprising amount of an investment fund lawyer's time, no matter how and from where they have been practising. Guernsey is no different, and understanding the general principles (and subtleties) that apply - and testing your proposed structure against these early - can save a lot of time and effort.

Getting this right is important. A collective investment scheme (a fund) is required to be authorised by or registered with the Guernsey Financial Services Commission; it is a regulated structure. Failing to get a fund authorised or registered can have substantial regulatory consequences. Just as importantly, perhaps, attempting to (or succeeding in) getting a structure authorised or registered that isn't a fund can