Guernsey Updates Private Investment Fund Regime

The Guernsey Financial Services Commission has recently updated the Private Investment Fund regime to improve its attractiveness to new fund promoters.

Until recently the fund's manager had to provide the Commission with a certification to the effect that investors in the fund were able to sustain losses that they may incur in the fund at the time of making their investment. The revised guidance and application form now only requires the manager to provide a declaration that as far as the manager can reasonably ascertain, the investors are able to sustain a loss.

Whilst, the manager will still be expected to make careful and appropriate enquiries prior to making the declaration, it is anticipated that this subtle relaxation of the application requirements will attract more promoters to the Island.