The Guernsey Financial Services Commission
("GFSC") yesterday launched a new regime for private
investment funds, following a brief consultation with
industry.
In summary, a private investment fund will be registered by the
GFSC and the regime dispenses with the need for the preparation of
information particulars in circumstances where the manager has a
closer relationship with investors. The fund must have within
its structure a licensee domiciled in Guernsey, which is
responsible for the management of the fund and, as part of the
application process, that manager will give certain warranties to
the GFSC as to the ability of the investors to assume loss. A
designated administrator licensed by the GFSC must also be
appointed. The fund is not required to appoint a custodian,
although if it is open-ended it must have a designated custodian,
which can be the designated administrator.
