PIF to offer 'flexibility and simplicity'

The private investment fund regime was developed in response to market demand by the Guernsey Financial Services Commission and the island's funds industry. It removes the formal requirement for information particulars such as a prospectus in recognition of the relationship between management and investors, reducing the cost and processing time of launching a fund.

Emma Bailey, director of the investment supervision and policy division at the Guernsey Financial Services Commission, said that the move was part of 'filling a gap in our existing suite of funds and offering an opportunity across all sectors' and part of a broader, longer-term commitment to a complete investment offering.

Earlier this year the commission launched the 'manager-led product', a regime designed in light of the Alternative Investment Fund Managers Directive, which places the regulatory burden on the manager and not the fund.

Mrs Bailey said that the longer-term vision was 'still a work in progress' and would include a similar manager-led product for the rest of the world. 'Continued communication between ourselves and industry will be vital to achieving a suite of products which is simple, flexible and comprehensive,' she said.

Mrs Bailey said that the commission also welcomed the fact that industry had wanted the PIF to be a regulated product and not unregulated as in other jurisdictions.

Industry has also welcomed the advent of the PIF and the MLP.