Guernsey Pitches For More Hedge Fund Business With Fast-Track Approval Process

The Guernsey Financial Services Commission (GFSC) has streamlined the approval process for both open and closed ended funds aimed at sophisticated investors. The GFSC has undertaken to grant the necessary fund approval within three days of receipt from an appropriately

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The Guernsey Financial Services Commission (GFSC) has streamlined the approval process for both open and closed ended funds aimed at sophisticated investors.

The GFSC has undertaken to grant the necessary fund approval within three days of receipt from an appropriately licensed Guernsey applicant of certification that the fund is restricted to appropriately “qualified” investors; the applicant has performed sufficient due diligence checks on the promoter and other associated parties to satisfy itself that they are fit and proper; and the applicant is satisfied as to the fund’s economic rationale, and that any risks are clearly disclosed in the documents.

“As a member of the Guernsey Investment Fund Association involved in the discussion process, we welcome this pragmatic approach from the GFSC in looking further to enhance Guernsey’s reputation not only as a well-regulated highly respected jurisdiction, but also as one that responds swiftly and appropriately to the ever-changing demands of the vibrant fund industry,” says Patrick Firth, Managing Director of Butterfield Fund Services (Guernsey) Limited. “The level of co-operation between the Regulator and the fund industry which led to the release of this new initiative will be viewed as extremely positive by sponsors, promoters and introducers of offshore funds who wish to establish their business in Guernsey.”

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