Consultation Paper on Proposals for Non-Guernsey Schemes (December 2020)

Summary

This is a GFSC consultation paper (issued 8 December 2020) seeking feedback on proposed changes to the Non-Guernsey Scheme regime under the Protection of Investors (Bailiwick of Guernsey) Law, 1987. It follows an earlier Funds Growth Discussion Paper and sets out detailed proposals to revoke the Licensees (Conduct of Business and Notification)(Non-Guernsey Schemes) Rules 1994 and replace prior approval/notification requirements with an annual data submission via the licensee's Annual Return.

• Revocation of Non-Guernsey Scheme Rules: Proposes removing the requirement for PoI licensees to give prior notice and obtain Commission approval before undertaking management, administration or custody activities for a Relevant Scheme.
• Expanded Annual Return: Proposes extending the PoI licensee Annual Return to capture data on non-Guernsey scheme activity, including total number of schemes, assets under management, NAV per fund, asset type and investor type.
• Fees falling away: The current notification fee (£1,108) and annual approval fee (£553 per approval) under the Fee Regulations would not be carried over if the Rules are revoked.
• Scope clarification: Confirms the proposed data collection would apply to both open ended and closed ended overseas collective investment schemes, not just open ended schemes as under current practice.
• Licensing unaffected: Notes that regardless of any revocation, any entity carrying out a restricted activity in or from the Bailiwick in connection with a collective investment scheme will still need to be licensed under the PoI Law.

The Commission asks three specific consultation questions on the proposed revocation and the additional annual return data requests, and states that any amended annual return details will be published before implementation. This is a draft proposal only and does not bind licensees unless and until finalised.

Key obligations

• Interested parties wishing to comment must submit responses to the Consultation Paper by 27 January 2021 via the Commission's Consultation Hub
• Under the current (unrevoked) Non-Guernsey Scheme Rules, PoI licensees must give prior written notice to the Commission and obtain approval before commencing management, administration or custody activities for each Relevant Scheme, and pay associated notification and annual fees

Applies to

PoI licensees (Protection of Investors Law licensees), Non-Guernsey Schemes (collective investment schemes not established, authorised or registered in Guernsey)

Deadlines

• 27 January 2021: Closing date for responses to the Consultation Paper on Proposals for Non-Guernsey Schemes