Partner | Legal
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The Guernsey Financial Services Commission (the Commission) 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 Law, 1987 (POI Law) manager, allowing the industry more flexibility while maintaining protection for investors.
Accordingly, on 20 April 2021 the Commission 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 licenced under the POI Law.
All PIFs registered currently with the Commission will continue to be registered under the traditional regime as they will meet the requirements under Route One. If an existing PIF wishes to change the basis of its registration using either the new Route Two or Route Three paths to registration, the Commission have advised that this will be treated as a new PIF application with a corresponding application fee being payable.
The requirements to qualify as a PIF under each of the three routes to registration are described below:
Route One – POI Licensed Manager PIF
Ogier would be happy to advise further on how this 50 person threshold may be met or exceeded depending on the type of investor concerned;
Route Two – Qualifying Private Investor PIF
To register a PIF through Route Two, all investors will have to meet qualifying investor criteria which are designed to protect more vulnerable investors:
Route Three – Family Relationship PIF
The third route will enable a PIF to be created as a bespoke private wealth structure requiring a family relationship between investors. Accordingly, the following restrictions apply to Route Three:
Which route a fund takes will depend on its needs and desired outcome. Ogier has a wealth of experience in advising on the establishment of PIFs and would be happy to discuss these new requirements with you further.
Ogier is a professional services firm with the knowledge and expertise to handle the most demanding and complex transactions and provide expert, efficient and cost-effective services to all our clients. We regularly win awards for the quality of our client service, our work and our people.
This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.
Regulatory information can be found under Legal Notice
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