GFSC clarifies rules around surrender of Guernsey Collective Investment Scheme authorisation

The Guernsey Financial Services Commission (the "GFSC") has issued timely guidance on the procedure and requirements regarding the surrender of a Collective Investment Scheme's ("CIS") authorisation or registration.

The updated guidance amends the previous update from 12 months ago, following industry feedback, clarifying that the previous guidance amounts to the default position and that the GFSC is prepared to be more flexible in certain circumstances.

The key points are that:

• the surrender of authorisation or registration is not effective unless prior written consent has been issued by the GFSC;
• consent will typically be forthcoming where the GFSC has received evidence that the liquidation or winding down of the CIS is complete, and there are no outstanding regulatory issues – the default position;
• where a CIS is constituted as a company, a request may also be considered when the scheme has entered into liquidation in non-contentious circumstances or where the scheme is in an advanced state of managed wind down;
• similarly, where a CIS is constituted as a limited partnership, a request may be considered when the scheme has entered into the dissolution process or where the scheme is in an advanced state of managed wind down;
• where a request is submitted prior to the dissolution of the CIS, the GFSC will expect prior discussion of the proposed AML/CFT/CPF compliance arrangements following the surrender; and
• the GFSC is unlikely to consent to the surrender where it judges there to be an undue risk to investors, or where it deems the surrender not to be in the interests of the public or the Bailiwick as an international financial services centre.

Where managers and administrators are seeking to surrender authorisation or registration, they should seek legal advice about the full process and the GFSC's requirements.

If you would like any further information, please get in touch with your usual Bedell Cristin contact or one of the contacts listed.