Guernsey: Investment Funds – Why Use Guernsey?

Our track record

40 Successful Years – Guernsey’s fund industry has successfully grown over nearly four decades. This has developed experience, infrastructure and accumulated intellectual capital which ensures the Island remains at the forefront of fund centres conducting cutting-edge fund business.

The highest reputation and standards – Fund business can be transacted with confidence in Guernsey as the Island has been scrutinised and endorsed by the International Monetary Fund and the Financial Action Task Force.

Fund flexibility – Funds domiciled in other jurisdictions can be serviced in Guernsey. The Island is also a ‘Designated territory’ under UK financial services legislation. There are bilateral public market access treaties with Australia, Hong Kong, Japan, The Netherlands, Republic of Ireland, South Africa, Sweden and Switzerland. The Island has also signed a Memorandum of Understanding with both The Netherlands and Dubai.

Fast track capability – Self-certification Qualifying Investor Funds (QIFs) enable very short authorisation times for funds run by experienced investors. A parallel streamlined consent process for registered funds is also being introduced.

Innovative legislation – Modern company law remains advanced through continuous improvement. Legislation permits PCCs, ICCs, limited partnerships and the amalgamation and migration of companies.

Strong corporate governance – Guernsey has an experienced and qualified pool of non-executive directors.

Exchange listings – Listings are available through the CISX. Additionally, Guernsey is one of only a very few jurisdictions where investment funds can be listed on the Amsterdam Euronext without obtaining a Netherlands licence. The Dutch AFM considers Guernsey to have adequate ‘home’ supervision.

Competitive tax environment – Funds are exempt from paying income tax and from 2008 there will be a zero rate for corporate entities. There is no withholding tax on dividends paid, no capital gains tax or VAT.

Pragmatic regulation – The Guernsey Financial Services Commission promotes robust yet pragmatic regulation and is renowned for being approachable, accessible and open to new ideas.

Conveniently located – The Island’s location between Europe and the UK places it in a time zone between the US and the Far East. This makes Guernsey a convenient place to carry out business with many different countries. Travelling to the Island is also quick and easy as there are frequent air and sea links to both Europe and the UK, with a flight time from London taking less than an hour.

A ‘one day business solution’ – Guernsey has a broad-based financial services industry (including support services) and all of the Island’s businesses and key institutions are in close proximity to each other so an extensive array and high volume of business can be carried out face-to-face and in a short amount of time.

Highly developed business support infrastructure – Carrying out business in Guernsey is quick and easy because the Island has a high quality infrastructure, including a newly upgraded first class telecommunications network that is unsurpassed offshore.

Special relationship with the EU – Businesses based on the Island have the advantages of being in a jurisdiction that is within the Common Customs Area and Common External Tariff without all the implications of operating from a full member of the EU. For example, directives such as those on fiscal harmonisation, financial services and company law do not have effect in Guernsey.

Stability – Continuity within Guernsey’s democratic government offers political and economic stability and thereby a safe and secure environment on which business can rely.

Independence – Legislative and fiscal independence allows the Island to respond quickly to the needs of business.

For more information about Guernsey's finance industry please visit www.guernseyfinance.com.

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