Discussion Paper on Ancillary Vehicles (August 2020)

Summary

This is a Guernsey Financial Services Commission discussion paper seeking industry feedback on a proposed new notification and exemption regime for 'ancillary vehicles' connected to Guernsey funds. It follows the States of Deliberation's approval of the draft 2020 Fiduciaries Law and 2020 PoI Law, which would introduce a statutory licensing exemption for certain fund-related vehicles (replacing the current discretionary exemption process) once notified to the Commission under rules to be made under section 20 of the PoI Law.

• Scope proposed: General partners of carried interest limited partnerships and co-investment limited partnerships linked to a registered or authorised Guernsey fund would qualify for the new statutory exemption if notified to the Commission.
• Notification process: The administrator of the exempt entity would submit a notification form (details may include entity name, registration number, directors/shareholders/beneficial owners, structure chart, administrator name, and other activities carried out).
• Possible time limit: The Commission is considering imposing a time limit on notifications (similar to the existing 3-year discretionary exemption time limit) with a requirement to renew.
• Existing discretionary exemptions: Entities already holding a discretionary exemption would not be forced to switch immediately, but the Commission encourages surrendering the DE and making a new notification when there is a natural touch point with the Commission (e.g. a new related vehicle is established).
• Questions posed: The paper asks five specific consultation questions on the scope of the exemption, proposed definitions of co-investment and carried interest vehicles, other activities that could be included, notification process details, and general comments.

This is a consultative discussion paper, not a final rule; the underlying laws remain in draft form and have not yet been approved by the Chief Pleas of Sark or the States of Alderney. No binding obligations currently arise from this paper itself. The Commission intends to consider feedback before issuing a more detailed Consultation Paper later in the year.

Applies to

fiduciary licensees, fund administrators, general partners of carried interest vehicles, general partners of co-investment vehicles, registered and authorised funds, ancillary vehicles

Deadlines

• 5 October 2020: Deadline for interested parties to submit responses/feedback on the Discussion Paper via the Commission's Consultation Hub.