Consultation Paper on Proposals for Private Investment Funds

Closed 1 Feb 2021

Opened 9 Dec 2020



In July 2020 the Guernsey Financial Services Commission published a Fund Growth Omnibus Discussion Paper[1] (the “Discussion Paper”) seeking feedback on proposals in relation to the Private Investment Fund Rules 2016 (the “PIF Rules”)[2]. The PIF Rules require that a Private Investment Fund (“PIF”) has within its structure a licensee responsible for management. When considering an application for the registration of a proposed PIF, the Commission relies on certain declarations made by the proposed licensed fund manager. The fund manager makes declarations in respect of:

  • prospective investors’ ability to sustain losses;
  • the maximum number of investors; and
  • the completeness and accuracy of the application.

The Discussion Paper invited comments on three proposed alternative approaches to PIF registration which might be introduced in addition to the current approach. Each suggested approach would not place reliance on a licensed manager, thereby potentially removing the need to make a related Protection of Investors Law[3] (PoI) licence application, along with the associated costs, in respect of each new PIF application.





[2] The Discussion Paper made a number of different proposals in addition to those relating to the PIF Rules. Each of these proposals will be addressed in separate consultations, based on appropriate timetables. A Consultation Paper on Proposals for Non-Guernsey Schemes was published on 8 December 2020.

[3] Protection of Investors (Bailiwick of Guernsey ) Law, 1987


  • Consumer
  • Financial Advisor
  • Financial Services Business