Consultation Paper on Unclaimed Money under the Protection of Investors (Bailiwick of Guernsey) Law, 2020
Results updated 17 Dec 2024
The Commission has today issued Unclaimed Investor Money Guidance under the Protection of Investors (Bailiwick of Guernsey) Law, 2020. Taking forward proposals consulted upon earlier in the year, the new guidance addresses the need for funds to have a policy for unclaimed investor money, to identify a responsible entity for overseeing this policy and to make appropriate disclosure to investors.
During the consultation, the Commission received 13 responses which have been taken into account in the new guidance. Most respondents were in favour of the Commission issuing guidance on the approach to the treatment of unclaimed investor money, but views varied on the scope of such guidance and the level of prescription that should be given. The new guidance takes a proportionate, principles-based approach, allowing scheme management flexibility.
It has also been decided to take forward the consultation proposal to remove the unclaimed money provisions in the Authorised Collective Investment Scheme (Class B) Rules. This change will come into effect on 20 December 2024 but will apply only to schemes authorised after this date.
Copies of the new guidance and amendment rules can be found at the link below.
Links:
Overview
During 2022 and Q1 2023 the Commission undertook a Thematic Review regarding Unclaimed Money1; the Thematic Review focused on how these monies are dealt with by the various relevant parties, primarily being the Designated Administrators, Scheme Boards and Liquidators. The scope of the Thematic Review was limited to authorised and registered schemes, which included Schemes whose authorisation/registration had been suspended but not those which had been surrendered. Therefore, whilst the Thematic Review identified that as a proportion of the Collective Investment Scheme industry’s overall NAV, Unclaimed Money does not represent a significant percentage, the Commission is mindful that, in many cases, Unclaimed Money will only be identified at the end of the Scheme’s life.
One of the main findings from the Thematic Review was that Unclaimed Money is not dealt with in a consistent manner within the Collective Investment Scheme industry, and the Commission is mindful that, other than in the Class B Rules, there is no guidance or rules relating to Unclaimed Money for Guernsey Schemes.
This consultation paper proposes the creation of a new policy and seeks industry’s views on key points which would be covered by the policy. This consultation paper also seeks industry’s views on the current rules regarding Unclaimed Money.
This consultation paper is a working document and does not prejudge any final decision to be made by the Commission.
1See report published here: https://www.gfsc.gg/news/thematic-review-unclaimed-client-money-collective-investment-schemes
What happens next
Following the consultation period, the Commission will collate and consider responses provided, with a view to publishing its policy shortly thereafter.
Audiences
- Anyone from any background
Share
Share on Twitter Share on Facebook