Guernsey has introduced a Private Investment Fund (PIF) regime
which provides fund managers with greater flexibility and
simplicity.
The PIF, which was developed in response to market demand by the
Guernsey Financial Services Commission (GFSC) in consultation with
the island's £247 billion funds industry, recognises that
certain investment funds are characterised by a relationship
between management and investors that is closer than that of a
typical agent. The PIF dispenses with the formal requirement for
information particulars such as a prospectus in recognition of that
relationship, significantly reducing the cost and processing time
of launching of a fund.
The PIF, which can be either closed or open-ended, should
contain no more than 50 legal or natural persons holding an
economic interest in the fund. A key strength of the product is
that, where an appropriate agent is acting for a wider group of
stakeholders such as a discretionary investment manager or
