The process of winding up a Guernsey fund involves several
important considerations that boards, fund managers, investment
advisers and administrators must navigate carefully. This article
explores six aspects which we consider to have primary importance,
alongside one key message – proactive planning can safeguard
interests of the fund parties, reduce risks posed by dissatisfied
investors and save costs regardless of whether or not a wind-up is
distressed or "in the ordinary course".
When to surrender
Investment funds in Guernsey must formally surrender their
authorisation or registration with the Guernsey Financial Services
Commission (GFSC).
Until fairly recently, the GFSC has only granted its consent for
the surrender of an investment fund's authorisation of licence
where the fund can demonstrate that it has fully completed its
formal liquidation or winding up process (in the case of a company)
or the dissolution process (in the case of a limited
