Guernsey launches Manager-Led Product fund category

May 18, 2016

On 11 May 2016, the Guernsey Financial Services Commission (GFSC) confirmed the launch of a new fund category, the Manager-Led Product (MLP).

The MLP is targeted at the Alternative Investment Fund Manager (AIFM) of both closed ended and open ended Alternative Investment Funds (AIFs). The GFSC has recognised that the AIFMD Rules place significant regulatory obligations on the AIFM and the MLP regime avoids placing any further regulatory burden on the AIF. In addition, any associated prospective licensee, such as a Guernsey general partner to a limited partnership AIF, will not need to be licensed.

Service providers to the AIF, including the Designated Administrator in the case of Elian, will continue to be regulated in Guernsey. The MLP therefore avoids sacrificing regulatory oversight, yet provides an efficient fund formation process which focuses capital concentration at the level of the AIFM. We expect it to particularly appeal to AIFMs with multiple AIFs in Guernsey and the reaction from the fund management industry has already been incredibly positive.

The introduction of MLPs further enhances Guernsey’s reputation for effective regulation which is capable in responding rapidly to market pressures, in this case from AIFMD. In addition to the MLP launch, a consultation process is also due to commence in June in relation to a ‘very private fund’ regime.

For a copy of the Guidance Notes issued by the GFSC in respect of the MLP category and the application/notification process, please click here.