New Registered Collective Investment Schemes Rules 2015 (the "2015 Rules")

13 Mar 2015

In Guernsey, collective investment schemes (open- or closed-ended) can either be "authorised" or "registered".

The key difference from a regulatory perspective is that the Guernsey Financial Services Commission (the "Commission") does not undertake detailed due diligence on the parties associated with a registered scheme, relying instead upon certifications by the local "designated manager" (administrator) of the scheme, who is itself licensed by the Commission. Registered schemes can take advantage of a fast -track approval process by the Commission, but, to date, registered schemes could not be offered directly to the public in Guernsey.

Having monitored and been satisfied overall with the certification process and due diligence carried out by its licensees in respect of registered funds since the registered fund regime was first implemented, the Commission considers that it is no longer necessary to prohibit the direct offering of registered schemes to the public in Guernsey.

The Registered Collective Investment Scheme Rules, 2008 (the "2008 Rules") have therefore been repealed and replaced by the 2015 Rules (made on 6 March 2015). With the exception of certain transitional provisions, the new rules take effect on 1 April 2015. The main change in the 2015 Rules is to allow the direct offering of registered schemes to the public in Guernsey. In addition, the term "designated manager" has been replaced by "designated administrator" to reflect more accurately the role of that party in the scheme, such role being to administer the scheme in accordance with its information particulars. Certain typographical errors in the 2008 Rules have been corrected in the 2015 Rules.

Updated Forms REG and REGSF taking into account the changes to the 2015 Rules will be released by the Commission separately before 1 April 2015.

For more information on Guernsey authorised or registered collective investment schemes, both open- and closed-ended, please contact Kate Ovenden or Mark Helyar.