You can read our infographic version of Guernsey Private Investment Fund (PIF) here.
Guernsey is one of the world's leading funds domiciles, with a pedigree stretching back 50 years and a net asset value of funds under management and administration of £276 billion (30 June 2018).
The island is the number one choice for non-UK entities listed on the London Stock Exchange and is one of just five non-EU jurisdictions to have been given an "unqualified and positive assessment" by ESMA for a third-country passport under the Alternative Investment Fund Managers Directive (AIFMD).
Ogier's partner-led team of Guernsey investment funds specialists advise on all stages of the investment funds life-cycle, and work closely with colleagues from BVI, Cayman, Hong Kong, Jersey, London, Luxembourg, Shanghai and Tokyo offices.
Guernsey's PIF regime demonstrates the island's flexibility – the regime recognises that there is a category of fund where management has a closer relationship with investors than is typical, and sets the regulatory framework accordingly.
We specialise in parallel fund structures utilising multiple jurisdictions.
Recent awards include Offshore Law Firm of the Year (Chambers Europe 2018) and International Law Firm (Legal Week Innovation Awards 2018).
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5 things to know about the PIF regime
No limit on the number of prospective investors to whom the PIF may be marketed to.
No minimum investment required.
The PIF allows a maximum of 50 legal or natural persons to hold an ultimate economic interest, except where the investment is made by an investment manager acting as agent for a group of stakeholders. The PIF can add up to 30 new ultimate investors in any rolling 12-month period.
There is no requirement for a prospectus and, where one is issued, there are no specified contents requirements.
PIFs may be either open-ended or closed-ended collective investment schemes.
5 things to know about PIF approvals
Regulatory approval obtained in one business day.
No prospectus or other fund documents are required to be submitted to the regulator.
There is no requirement to demonstrate track record; instead the designated administrator must be satisfied that the proposed promotor of the PIF is 'fit and proper'.
Managers must provide a declaration to the regulator in respect of investors' ability to sustain any losses incurred in respect of the PIF at the time of their investment.
The PIF requires a Guernsey domiciled licensed manager to be appointed.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.