Guernsey updates Private Investment Fund's rules and guidance

21/03/2018 News Team

The Guernsey Financial Services Commission (GFSC) has amended the Guernsey’s Private Investment Fund's (PIF) rules and guidance following a one-year review.

The PIF which recognises close and longstanding links between fund managers and investors will no longer have a licensed investment manager to warrant an investor’s ability to sustain financial loss. The warranty has been replaced with a declaration, which places a lesser burden on the licensed manager.

The declaration may be satisfied in a number of ways, including the investor having a close relationship with the promoter and manager through previous deals.

Guernsey Finance chief executive, Dominic Wheatley said the new amendments reveal that Guernsey’s regulator is "flexible and proportional."

"The PIF has met a gap in the market, providing a cost-effective regulated product to institutional and private investors, and these latest amendments will enhance its standing further,” he said.

Over the past 15 months, 13 such funds have been launched by domestic and international managers of alternative assets including private equity and real estate.

The PIF which can be closed- or open-ended should contain no more than 50 legal or natural persons holding an economic interest, except where an appropriate agent is acting for a wider group of stakeholders.

The move is expected to improve the take-up of the product, which was launched in November 2016.

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