'Property is for the long term'

THE GFSC has defended Guernsey against criticism that 'unauthorised' UK commercial property funds have left investors with big losses.

Business news website breakingviews. com reported that some £40bn had been ploughed into unregulated investment vehicles, most of which were registered in Guernsey and Jersey.

The investors had been attracted by the combination of tax advantages and the ability to borrow heavily, as the funds were not regulated by the UK Financial Services Authority. However, since the market turned in 2007, gearing has contributed to some 'nasty losses', according to breakingviews.

GFSC director general Peter Neville said that such funds should always be seen as a long-term investment.