Guidance Note: Unclaimed Investor Money under the Protection of Investors (Bailiwick of Guernsey) Law, 2020

Summary

This is GFSC guidance explaining regulatory expectations for how Guernsey collective investment schemes should handle Unclaimed Investor Money and Blocked Investor Money. It is non-binding guidance rather than a rule, but sets out the Commission's expectations for a documented Policy that Scheme Boards should adopt.

• Scope: Applies to collective investment schemes authorised or registered under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, excluding Private Investment Funds. Does not apply to closed ended schemes or open ended schemes no longer accepting subscriptions that were already operating when the guidance was issued, though they may voluntarily adopt it.
• Policy content: The Policy, approved by the Scheme Board, should cover: identification of a Responsible Entity (a PoI Law regulated firm); a contact timeframe and reasonable tracing efforts (generally at least annual contact attempts, not ceasing before six years after the first attempt); reporting arrangements to the Scheme Board; any de minimis amount below which tracing is not required; and how administrative costs of tracing are allocated.
• Disclosure: The Scheme's Unclaimed Investor Money Policy should be explained and disclosed to investors in the Scheme Particulars.
• Blocked Investor Money: Treatment must ensure compliance with the Handbook on Countering Financial Crime and the Proceeds of Crime Law, and may be treated differently from other unclaimed money; money subject to sanctions or FIU no consent notices falls outside this guidance.
• End of scheme life: On liquidation, responsibility for Unclaimed Investor Money passes to the liquidator, from the date of appointment if appointed before surrender of the scheme's registration or authorisation.

Because this is guidance rather than binding rules, the Commission expects schemes to consider their own duties under applicable law when compiling their Policy rather than treating this document as a checklist of legal requirements.

Key obligations

• Schemes (other than Private Investment Funds) should have a documented Unclaimed Investor Money Policy approved by the Scheme Board
• The Policy must identify a Responsible Entity, which should be a firm regulated under the PoI Law, decided by the Scheme Board with the Designated Administrator before launch
• The Policy must prescribe a contact timeframe, with reasonable efforts generally including at least one contact attempt per year and continuing for at least six years after the first contact attempt before ceasing
• The Policy must detail how and how often the Scheme Board is kept informed of Unclaimed Investor Money
• The Policy should address allocation of administrative costs relating to Unclaimed Investor Money
• The Scheme's Policy should be disclosed to investors within the Scheme Particulars
• The treatment of Blocked Investor Money must ensure compliance with the Handbook on Countering Financial Crime and the Proceeds of Crime Law
• On liquidation, the liquidator becomes responsible for Unclaimed Investor Money from the date of appointment

Applies to

collective investment schemes authorised or registered under the Protection of Investors (Bailiwick of Guernsey) Law, 2020, Scheme Boards, Designated Administrators, Responsible Entities regulated under the PoI Law, liquidators

Deadlines

• once per year: Minimum expected frequency of reasonable contact attempts to trace investors or rightful owners of Unclaimed Investor Money
• six years after the first contact attempt: Efforts to contact investors and/or rightful owners should not cease before this period has elapsed