Guidance update good news for fund managers
INCREASED interest in the offering from Guernsey’s fund sector is on the cards following an update to private investment fund guidance.
The action by the Guernsey Financial Services Commission removes the need for a licensed investment manager to warrant an investor’s ability to sustain financial loss, replaced by a declaration – which places a lesser burden on the manager.
‘The FAQs provide a most welcome clarification to the PIF regime, which we expect to end any ambiguity about the nature and extent of managers’ responsibilities,’ said Craig Cordle, pictured, group partner at law firm Ogier.
The PIF is based on a close relationship between investors and managers.
Mr Cordle said that the requirement for managers to make a straightforward declaration to the regulator regarding investors’ ability to sustain losses should not be onerous.
‘The new FAQs have been published at a time when the PIF option is gaining traction and momentum and we fully expect these helpful FAQs to build on that traction by clarifying the rules for the wider market,’ he added.
‘The PIF is an exciting part of our product set in the Guernsey funds sector, suitable for both private and institutional clients.
‘I look forward to seeing this market develop over the course of the year,’ said Paul Smith, chairman of the Guernsey Investment Fund Association.
