Regulation
Investor Protection (Designated Countries and Territories) Regulations, 1989
In forceView on GFSC's website Source document
Summary
This 1989 Guernsey statutory instrument, made under the Protection of Investors (Bailiwick of Guernsey) Law 1987, designates the United Kingdom, the Bailiwick of Jersey and the Isle of Man as countries or territories whose investor protection laws are recognised as adequate for certain purposes. It sets out the practical effect of that recognition for promoters of collective investment schemes and for Guernsey licensees dealing with schemes authorised in those jurisdictions.
- Designation (Schedule 1): UK, Jersey and Isle of Man laws are designated as affording adequate investor protection for the restricted activity of promotion of specified authorised unit trusts, Jersey collective investment funds with a permit, and Isle of Man authorised schemes respectively.
- Designation (Schedule 2): The same three jurisdictions are designated for the purposes of section 29(2) of the Law in relation to the classes of collective investment scheme described in the Schedule (UK authorised unit trusts, Jersey permitted funds, Isle of Man authorised schemes).
- Unlicensed promotion allowed: A person without a permanent place of business in the Bailiwick who is recognised under UK, Jersey or Isle of Man law and promotes a scheme there in a permitted manner may promote that scheme in the Bailiwick without a Guernsey licence, provided they notify the Commission and otherwise comply with section 3(1) of the Law.
- Licensee flexibility: A Guernsey licensee may carry on a restricted activity for which it is licensed in connection with any UK or Isle of Man authorised scheme, or a Jersey permitted fund, if it observes the requirements applicable to that activity in the relevant jurisdiction.
- Content of section 29(1)(c)(iv) notice: A notice given to the Commission to rely on the exemption must identify the designated country or territory, name each collective investment scheme to be promoted, state the manner of promotion, and certify that the promoter is permitted to promote each scheme in that manner in the designated country or territory.
- Notification fee (new regulation 3A of the Fees Regulations 1988): A fee of £500 is payable per collective investment scheme identified in the notice, unless the designated country or territory is the Bailiwick of Jersey, in which case no fee is payable (reflecting reciprocal treatment of Guernsey schemes in Jersey).
The Regulations came into force on 1 November 1989 and remain part of the Bailiwick's investor protection framework linking Guernsey licensing exemptions to recognised overseas regimes.
Key obligations
- A person relying on the section 29(1)(c)(iv) exemption to promote a collective investment scheme in or from the Bailiwick without a licence must give the Commission a notice identifying the designated country or territory, naming each scheme, stating the manner of promotion, and certifying permission to promote each scheme in that manner in that country or territory.
- Such a person must pay a notification fee of £500 per collective investment scheme identified in the notice, unless the designated country or territory is the Bailiwick of Jersey, in which case the fee is nil.
- A Guernsey licensee carrying on a restricted activity in connection with a UK, Isle of Man, or Jersey-permitted collective investment scheme must observe any requirements applicable to that activity in the relevant jurisdiction.
Applies to
persons or bodies promoting collective investment schemes without a Bailiwick licence, licensees under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, collective investment schemes authorised in the United Kingdom, Isle of Man, or holding a Jersey permit
Deadlines
- 1st November 1989: Commencement date of the Regulations.