Fund managers and investors are becoming increasingly aware of
and interested in economic substance for practical and reputational
reasons.
Guernsey funds lawyer Kate Storey, a Partner at
Walkers, told a webinar organised by The
Drawdown magazine, in association with WE ARE GUERNSEY,
that while BEPS had pushed General Partners and fund managers to
take heed of substance, it was becoming a matter for investors
too.
"This is primarily important to GPs and the fund managers
because they are the entities that have to comply with EU
requirements on economic substance," she said.
"But obviously compliance with economic substance is
relevant to a jurisdiction's reputation and an investor
wouldn't necessarily want to be investing in a jurisdiction
that's been blacklisted, so it is important for the manager and
the investor that economic substance is there."
