GUERNSEY
There are sound pragmatic reasons for Guernsey's reputation as the jurisdiction of choice for an increasing number of leading funds promoters.
The island is a mature vibrant and innovative international finance centre which plays host to a number of very experienced firms involved with the structuring, launch and administration of funds and providing high quality legal, accounting, valuation, company secretarial and audit services.
Guernsey's fund sector is renowned for its professionalism, quality of service, responsiveness, and breadth of experience.
This reputation is protected by financial legislation and regulations which have been recognised as of the highest standards by many global authorities including the International Monetary Fund, the Financial Action Task Force and the United Kingdom government.
The Guernsey Financial Services Commission (GFSC), a statutory, autonomous, non-governmental body meets with the industry regularly to ensure that Guernsey's regulatory regime continues to be pragmatic, as well as meeting international standards.
The GFSC and the local fund community are proactive in maintaining a leading fund environment to attract fund managers from around the world.
- Guernsey was the first offshore financial jurisdiction to introduce protected cell company (PCC) legislation, which enables several classes of funds to be established under the same PCC with no possible contagion between one class and another.
- In 2005 the introduction of the Qualifying Investor Fund Rules, which handed the task of collating and certifying diligence on a fund, its promoter and manager to a licensed service provider, streamlined the authorisation process for funds with only qualified investors. The GFSC undertakes to grant fund approval within three working days of receipt/resolution of all the application issues.
- More recently legislation enabling the establishment of Incorporated Cell Companies (ICCs) was introduced. An ICC has cells like a PCC but they are separately incorporated and distinct legal entities. This provides an extra layer of protection for investors who may be concerned about the legal standing regarding ring fencing in PCCs.
Through the Guernsey-based Channel Islands Stock Exchange, primary or secondary listings can be obtained for many different types of funds.
Other practical advantages include political stability based on self-government dating back to 1205 and the absence of political parties, which means that the island is not prone to pendulum swings in regime or policy. As an ancient British Crown Dependency, Guernsey is not part of the UK and has a special relationship with the EEC, through Protocol 3 of the Treaty of Accession. This protocol places Guernsey within the Common Customs Area and the Common External Tariff, which allows access to EEC countries of physical exports without tariff barriers. Other Community rules do not apply to Guernsey.
The island has a skilled, experienced, English speaking workforce. It is in the same time zone as London and frequent air links to London and other United Kingdom airports permit one-day business trips.
Guernsey is quite simply one of the most stable, experienced and well regarded of international finance centres. |
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