Introduction
The Guernsey Financial Services Commission (GFSC) has added two new ways to register a private investment fund (PIF) in Guernsey. A public consultation process showed that there was strong support for a PIF model without the attached Protection of Investors (POI) Law 1987 manager, allowing the industry more flexibility while maintaining protection for investors.
Accordingly, on 20 April 2021 the GFSC published The Private Investment Fund Rules and Guidance 2021 (the revised rules). The revised rules take effect immediately and replace The Private Investment Fund Rules 2016.
Unlike the traditional way of registering a PIF (now known as Route One registration), the two additional routes do not require the PIF to have a manager licensed under the POI Law 1987.
Introduction
The Guernsey Financial Services Commission (GFSC) has added two new ways to register a private investment fund (PIF) in Guernsey. A public consultation process showed that there was strong support for a PIF model without the attached Protection of Investors (POI) Law 1987 manager, allowing the industry more flexibility while maintaining protection for investors.
Accordingly, on 20 April 2021 the GFSC published The Private Investment Fund Rules and Guidance 2021 (the revised rules). The revised rules take effect immediately and replace The Private Investment Fund Rules 2016.
Unlike the traditional way of registering a PIF (now known as Route One registration), the two additional routes do not require the PIF to have a manager licensed under the POI Law 1987.
Background
The Guernsey Financial Services Commission (GFSC) has updated
the Private Investment Fund Rules, to offer three alternate PIF
routes, effective from 22 April 2021.
The new PIF options follow on from a GFSC consultation with
industry in 2020, and in addition to the existing Protection of
Investors (POI) Licensed PIF (Route 1), add two new options –
the Qualifying Private Investor PIF (Route 2) and the Family
Relationship PIF (Route 3).
The Three Guernsey Routes
Route 1 – the POI Licensed Manager
PIF is the original PIF model whose criteria is;
fewer than 50 investors (although no limit on the number of
potential investors who can be marketed to), limits on investors in