Guernsey's New "Manager Led Product"

Introduction and Concept

In May 2016 the Guernsey Financial Services Commission (GFSC) launched a new regulated investment structure, the Manager-Led Product (MLP).

Under the MLP regime the primary alternative investment fund manager (AIFM) in respect of an alternative investment fund (AIF) must be licensed by the GFSC through the normal licensing process (10 business days). However, significantly:

• AIFs managed by that AIFM will be "registered" by the GFSC (as "registered" funds) and associated entities with management responsibilities (such as general partners of limited partnerships) will be licensed by the GFSC within one business day;
• neither those AIFs nor any associated management entities (such as general partner companies) will be subject to any rules. The principal Guernsey regulations for MLP structures are applied to the AIFM.