Guernsey Funds: Practical Matters To Bear In Mind (December 2021)

When setting up a Guernsey fund, there are certain practical matters to bear in mind to ensure that the establishment and operation proceed smoothly.

The board of directors

Composition and conduct

The Protection of Investors (Bailiwick of Guernsey) Law, 2020 (the "POI Law")

Where the entity is a licensee under the POI Law ("a POI Licensee"), the POI Law requires each director, controller, partner or manager of the POI Licensee to be a "fit and proper person" to hold that position. Factors such as his/her probity, competence, experience and judgment will go to making this determination. The board of directors of the POI Licensee must be comprised of at least two individuals or appropriate standing and expertise who are sufficiently independent of each other. The GFSC requires a board to be comprised of such number of executive and non-executives as it considers appropriate in the circumstances. The business must be conducted in a prudent manner.