Protection of Investors (Bailiwick of Guernsey) Law, 2020

Status per Guernsey Legal Resources (guernseylegalresources.gg) (as at 2026-07-25)

Summary

This is the core primary legislation governing investment business and collective investment schemes in the Bailiwick of Guernsey. It establishes the licensing regime for persons carrying on controlled investment business, the authorisation or registration regime for collective investment schemes, and the Guernsey Financial Services Commission's supervisory, rule making and enforcement powers over both.

Licensing: Prohibits carrying on, or holding out as carrying on, controlled investment business in or from the Bailiwick without a Commission licence, and sets out application, grant, refusal, conditions and surrender procedures.
Collective investment schemes: Restricts activities in connection with collective investment schemes unless the scheme is authorised or registered, and allows the Commission to impose conditions and accept surrender of authorisation or registration.
Rules, codes and directions: Empowers the Commission to make investment business rules (accounting, conduct of business, promotion, indemnity and compensation, scheme rules), regulations (fees, exemptions, unsolicited calls, cancellation), codes of practice, principles of conduct, and directions binding on licensees and schemes.
Information and supervision: Gives the Commission powers to require information and documents, appoint skilled persons, regulate supervised roles (vetted and approved), require auditor appointments and communications, and obtain meetings with auditors or actuaries.
Exempt persons: Allows certain persons or classes of person to be exempted from the licensing requirement, subject to conditions the Commission may impose.
Annual returns and disclosure: Requires licensees and authorised or registered schemes to file annual returns, restricts disclosure of information obtained by the Commission (with defined exceptions), and sets out representation, appeal and enforcement mechanisms.
Offences and penalties: Creates criminal offences for carrying on controlled investment business without a licence or in breach of the Law, with associated penalties, director liability provisions and a due diligence defence.

The Law applies across licensing, conduct, disclosure and enforcement, and is supplemented by five schedules covering the categories of controlled investments, restricted activities, requirements for authorised or registered schemes, minimum licensing criteria, and the meaning of holding and subsidiary company. It has been amended several times since 2020, including insertion of an ongoing duty to notify the Commission of material changes to information supplied in a licence application.

Key obligations

Persons must not carry on, or hold themselves out as carrying on, controlled investment business in or from the Bailiwick except under the authority of and in accordance with the conditions of a Commission licence.
A Bailiwick body must not carry on controlled investment business from outside the Bailiwick unless licensed for that jurisdiction and the business would be lawful if carried on in the Bailiwick.
Persons must not carry on restricted activities in connection with collective investment schemes unless the scheme is authorised or registered by the Commission (subject to exceptions).
Applicants for a licence must supply the information, particulars, fee and supporting documents required by the Commission and must comply with any further information or report requests made under section 3.
Where any fact, circumstance or previously supplied information changes after a licence application, the applicant must inform the Commission as soon as practicable and in any event within 14 days (or such other period as the Commission determines), failing which the licence may be refused or revoked.
Licensees and authorised or registered collective investment schemes must file an annual return with the Commission.
Licensees must appoint auditors as required under section 43 and ensure auditors communicate prescribed matters to the Commission.
Licensees and scheme operators must comply with investment business rules, conduct of business rules, promotion rules, indemnity and compensation rules and principles of conduct issued by the Commission.
Persons subject to section 33 must provide information and produce documents to the Commission when required, and retain documents as required under section 37.
Holders of supervised roles (vetted or approved) and notifications of changes in such holders must be made to the Commission as required under sections 39 to 42.

Applies to

licensees carrying on controlled investment business, authorised or registered collective investment schemes and their operators, applicants for an investment business licence, persons holding supervised (vetted or approved) roles, auditors of licensees and schemes, exempt persons under Part IV, Bailiwick bodies carrying on investment business outside the Bailiwick

Deadlines

within 14 days of becoming aware of a change (or such other period as the Commission may determine): Applicant must notify the Commission of any change of fact, circumstance or previously supplied application information under section 3(6A).
a period of three months (or such longer period as the Commission specifies): An application is deemed withdrawn if the applicant fails to provide required information or documents within this period, subject to a further 14 day notice period under section 3(6).
annually: Licensees and authorised or registered collective investment schemes must file an annual return under section 52 (specific filing date/period not stated in the extracted text).

Protection of Investors (Bailiwick of Guernsey) Law, 2020

Summary

Key obligations

Applies to

Deadlines

Related documents

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