Notice regarding the suspension of the authorisation and registration of funds (2022-11-17)

Summary

This notice clarifies the Guernsey Financial Services Commission's approach to collective investment schemes whose authorisation or registration has been suspended, typically because the scheme has reached the end of its life and entered liquidation. It confirms that suspended schemes remain authorised or registered under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 and the Enforcement Powers Law, and therefore remain subject to all applicable laws, rules and AML/CFT obligations.

• AML/CFT: The AML/CFT Handbook continues to apply before and throughout suspension; a POI licensed firm must be nominated for investor CDD and may continue in that role during suspension, though a registered Prescribed Business liquidator may be nominated instead in appropriate cases.
• Periodic returns: Suspended schemes must submit annual returns (Form 143), quarterly statistical returns (Form 141), and the Financial Crime Risk Multi-Scheme Intermediary Return (Form 152) via the online portal, commencing from 1 January 2023.
• Annual fees: Annual fee invoices will be raised for suspended funds from the 2024 fee cycle onward, with 2023 treated as a transitional waiver year; no fees will be charged retrospectively for schemes suspended in 2022, 2023 or earlier years.
• Audit derogations: The Commission may consider requests to derogate from auditor appointment or audited accounts requirements for schemes suspended due to non-adverse liquidation, instead requiring unaudited financial accounts via Form 143 within the same timeframe as audited accounts would be due.
• Other derogations: Requests to derogate from other Fund Rule requirements will be considered case by case, but are unlikely to be granted where they would reduce regulatory oversight or investor protection.

Overall, the notice signals that suspension does not relieve a scheme or its service providers of ongoing regulatory, reporting, fee and AML/CFT obligations, though limited relief is available for audit requirements in appropriate non-contentious liquidations.

Key obligations

• Suspended schemes must continue to comply with all applicable AML/CFT Handbook requirements and maintain a nominated firm responsible for investor CDD.
• Suspended schemes must submit annual returns (Form 143), quarterly statistical returns (Form 141), and the Financial Crime Risk Multi-Scheme Intermediary Return (Form 152) via the Commission's online portal, commencing from 1 January 2023.
• From 1 January 2024, suspended schemes will be liable for the same annual fees applicable to their scheme type, with 2023 fees waived as a transitional measure.
• Where a derogation from audit requirements is granted, suspended funds must submit unaudited financial accounts via online Form 143 within the same timeframe as audited accounts would otherwise be due.
• Any request to derogate from other Fund Rule requirements must be submitted to and considered by the Commission on a case by case basis.

Applies to

Guernsey regulated collective investment schemes, suspended funds, POI licensed firms, service providers to suspended schemes, liquidators registered as Prescribed Business

Deadlines

• 1 January 2023: Commencement of required submission of annual returns (Form 143), quarterly statistical returns (Form 141), and Financial Crime Risk Multi-Scheme Intermediary Return (Form 152) for suspended funds.
• 2023: Transitional year in which annual fees for suspended funds will be waived.
• 1 January 2024: Commencement of annual fee invoicing for suspended funds, applying the fee applicable to the relevant scheme type.