GUERNSEY Law and Practice Contributed by: Matthew Brehaut, Carey Olsen
Promotion to the public of certain categories of funds as mentioned in 2.3.6 Rules Concern- ing Marketing of Alternative Funds requires a GFSC notification (to which the GFSC must issue a confirmation), and the promoter must be able to satisfy the following: • that it carries on that activity (ie, the promo - tion of the funds) in or from within the Baili - wick, in a manner in which it is permitted to carry on such activity in or from within, and under the law of, a designated country or ter - ritory which, in the opinion of the Committee for Economic Development, affords (in rela - tion to activities of that description) adequate protection to investors; • that it has its main place of business in that country or territory and does not carry on any restricted activity from a permanent place of business in the Bailiwick; and • that it is recognised as a national of that country or territory by its law. Promotion to entities licensed by the GFSC by a firm with a main place of business in one of the countries or territories designated for the pur - poses of Section 44(1)(d) of the POI Law (which includes the UK) does not require a licence, pro - vided that a GFSC notification is made and that the promoter is able to satisfy the following. • The firm does not have a permanent place of business within the Bailiwick. • The firm is an entity established in a country or territory designated and listed in the first column of the Schedule to the Investor Pro - tection (Designated Countries and Territories) (Bailiwick of Guernsey) Regulations, 2017. This list is extensive and includes signatory countries to the Multilateral Memorandum of Understanding Concerning Consulta - tion and Cooperation and the Exchange of
Information, established by the International Organisation of Securities Commissions in May 2002 – the authors note that the UK is included. • The promotion is carried out in accordance with the laws of that designated country or territory. 2.3.9 Post-Marketing Ongoing Requirements Firms making use of marketing to the pub - lic regime must pay an annual fee (following an initial fee). Otherwise, there are no ongoing requirements, provided the circumstances do not change. 2.3.10 Investor Protection Rules Regarding investor protection provisions, see 2.2.3 Restrictions on Investors. Regulatory reporting requirements depend on the relevant fund type and may be summarised as follows. • For Class A funds, Class B funds and Class Q funds, the manager must provide to the GFSC: (a) reports issued to investors; and (b) either an annual notification of any changes to the information contained in the application form, or a confirmation that there are no changes. • For RCIS funds and PIFs, the manager must provide to the GFSC: (a) either an annual notification of any changes to the information contained in the application form, or a confirmation that there are no changes; (b) an audited annual report and accounts within six months of the year-end; and (c) a quarterly statistical return. • Audited financial statements must be submit - ted annually to the GFSC.
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