Guernsey Authorised Fund

Key Features

If a vehicle established in Guernsey satisfies the criteria for a “collective investment scheme” (see below) or “fund”, it must either be registered or authorised by the Guernsey Financial Services Commission (“GFSC”) and no Guernsey-licensed entity can provide services to such a vehicle without it being so registered or authorised.

The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended (the “POI Law”) creates two categories of Guernsey fund:

1. authorised collective investment schemes; and
2. registered collective investment schemes.

Open-ended funds may be Authorised:

• Class B: the most popular open-ended structure typically established for marketing to institutions and high net worth/sophisticated investors. The rules applying to Class B scheme documents and administration are less comprehensive than those applying to Class A schemes; or
• Class A: eligible for marketing to the general public in the UK and certain other jurisdictions. There are comprehensive rules which regulate the documents by which a Class A scheme is established, the content of the relevant scheme particulars, the general administration of the scheme and the investment parameters; or
• Class Q: restricted to qualifying professional investors. The rules governing such schemes are less prescriptive than those for Class A and Class B schemes and a fast track approval process should be available.

 

Legal Requirements

Requirements	Description
General
Corporate  vehicle permitted	Jersey Company,  Incorporated cell company (ICC) or a Protected cell company (PCC), Limited Partnership, Unit trust
Local physical office required	No
Share capital or equivalent
·         Minimum paid up capital	None
·         Minimum investors	None
Directors
Minimum number	1
Corporate directorship allowed	Yes
Local director required	No
Service Providers Required
Custodian	No
Fund manager/Investment manager	Yes
Fund administrator	No
Auditors	Yes

 Tax Treatment

There is no capital, value added or inheritance taxes in Guernsey, nor any stamp or document duties except in respect of Guernsey real property.

With the exception of certain businesses, companies (including funds) now pay a standard rate of 0% income tax on profits. Funds still have the option to apply for exempt company status (on payment of an annual fee of £600).

Duration to Set Up

3 months

Distinctive Benefits of Licence

• Robust yet flexible regulatory environment
• Professional infrastructure and quality of workplace
• Tax neutrality and Tax Exchange Agreements
  

The Valsen Advantage

• End to end comprehensive service
• Speedy and efficient service
• Expert advice on structuring options
• Dedicated ongoing compliance support
• Extensive network pool of service providers