Guernsey's New ‘Green Fund' Certification Boosts A Growing Asset Class

Guernsey's new Green Fund offering investors certified environmentally-friendly opportunities is a welcome innovation that creates another clear differentiator for the jurisdiction, says Ogier Group Partner Craig Cordle.

Ethical investments – also known as Environmental, Social and Governance, or ESG, investments - are a growth area. A 2015 Morgan Stanley report that they have been growing in popularity amongst younger investors, and a 2013 German study showed that investors do not necessarily have to sacrifice returns for ESG-friendly investments.

The new Guernsey Green Fund certification available now from the Guernsey Financial Services Commission offers a 'green kitemark' where the funds administrators either: provide a certificate from a suitable independent third party that the fund prospectus meets the criteria; or a signed declaration from the designated administrator that the fund meets the criteria.