The Guernsey Financial Services Commission has announced a more streamlined and simplified Private Investment Fund regime, creating an innovative, marketable and flexible fund structure for a range of private capital investment strategies.
The updated Private Investment Fund (PIF) brings together what were routes one and two into a single, streamlined private fund regime, whilst retaining the Family PIF – a family wealth solution with the benefits of a collective investment scheme structure – as a separate route to market, tailored to high-net-worth individuals.
William Mason, Director General, said: “The Commission is committed to ensuring Guernsey is appropriately positioned internationally as an attractive hub for business, with sensible and usable regulations that meet best practice in other significant international finance centres. The new look PIF regime is an example of this commitment, and our focus on enhancing Guernsey through innovation, simplicity and ease of use.
“We have streamlined the private fund regime for qualifying private investors, offering added flexibility with additional options to qualify as a private investor, including licensee warranted investors. We have removed the compulsory audit requirement and there is now no upper limit on the number of qualifying private investors, and no limit to the number of offers that may be made provided it is done so on a private basis to qualifying investors.
“The Private Investment Fund remains a regulated product with a strong focus on corporate governance, including managing conflicts of interest, but with additional flexibility and optionality.”
Gillian Browning (pictured), Deputy Director General – Investment, Fiduciary and Pension Division, added: “We would like to thank industry associations and representatives for their feedback and input into how we could simplify the PIF regime whilst retaining many of the key features. Those applying can still take advantage of the PIF’s speed to market, with regulatory approval in as little as 24 hours. This speed and ease of applications has been further bolstered with the launch of our new Applications and Authorisations Portal.
“The new, secure online portal will make it even easier for those wishing to undertake business in Guernsey, and will support online collaboration and communication throughout the process, both between parties drafting an application prior to submission, and with the Commission post-submission.
“Our staff are available for any enquiries and are happy to talk to those who wish to discuss innovative structures or prospective applications, including PIFs.”
