Guernsey’s New Qualifying Investor Fund Regime (QIF)

Europe’s role in the global investment fund market has become increasingly prominent. The introduction of alternative investment strategies has created a more competitive arena and, as a result, jurisdictions closer to the European market are increasingly becoming a more attractive platform for offshore investments.

The Guernsey regulator, the Guernsey Financial Services Commission (GFSC) has always adopted a flexible approach to the authorisation of investment funds in Guernsey. Recent regulatory changes are further easing the requirements for establishing hedge funds in Guernsey by allowing certain funds that qualify to benefit from a quasi "self-certificated" process.

The GFSC announced to that effect in February 2005 the introduction of the Qualifying Investor Funds Regime to complement the existing fund approval procedure which will remain unaltered. The effect of the regime is that the Commission will grant the required fund approval within three working days (of receipt of