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Guernsey – Centre of Excellence for Private Equity and Venture Capital Funds
Guernsey as an international finance centre is a Centre of Excellence for all things funds, and especially Private Equity and Private Equity Funds. But you need not take our word for it.
- The island’s regulator confirmed that the net asset value of private equity funds in the island passed £120 billion for the first time in Q3 2018, and this figure had increased by a further £3 billion by the end of the next quarter
- Guernsey has been awarded Best Centre for Fund Administration two years on the trot (2017 and 2018) by Investment Week
- According to the Director General of the British Private Equity and Venture Capital Association, Guernsey offers authority and certainty; expertise, culture, common law and confidence. He also noted that the Channel Islands generally were a realm which has real international status, standing and credibility, in the way that certain competitors might claim to have, but that claim is at best untested and at worst suspect
Guernsey is also an innovative international finance centre; the concept of the Protected Cell Company originated here and spread through the world. Guernsey has recently launched the branded Green Fund; providing another world first as the first jurisdiction to offer these funds as Regulated entities. Our flexible rules and regulations also helped to create another first – the first London-listed vehicle to offer an attractive and growing level of income and capital growth by investing in music is a Guernsey fund.
This London Listed vehicle is just the tip of the iceberg as far as London Listings are concerned. In Guernsey we have a long history of getting vehicles listed on the various London Exchanges, and as at the end of December 2018 Guernsey was home to more non-UK entities listed on the LSE markets than any other jurisdiction globally. We had 113 entities listed; our nearest rival only had 72.
On the subject of Regulation, Guernsey is well regarded there too. The EU Council’s Code of Conduct Group and the European Council of Finance Ministers have recognised our substance laws as meeting their legal substance requirements. The Economic and Financial Affairs Council of the European Union have confirmed that Guernsey is a cooperative jurisdiction with respect to tax good governance principles.
MONEYVAL rated Guernsey very well. They found that Guernsey has in place a range of measures to facilitate various forms of international cooperation and plays host to competent authorities and financial institutions that are highly competent, knowledgeable and aware of their obligations.
“The Economic and Financial Affairs Council of the European Union have confirmed that Guernsey is a cooperative jurisdiction with respect to tax good governance principles.”
Cooperation and coordination between Guernsey authorities was also found to be effective. The European Securities and Markets Authority deemed Guernsey to have equivalent regulation to Europe and was poised to grant us a Passport for marketing funds within the EU. Whilst the whole issue of Passports has been put on hold due to Brexit, Guernsey still has excellent access to the European Markets via individual country’s National Private Placement Regime (“NPPR”). Indeed many entities are now finding that using the NPPR is easier and quicker than complying with the full regime required for passporting.
Although Guernsey has a well-regarded Regulatory environment, it is not one which should fill you with dread when you wish to apply for a licence to operate in Guernsey. Once the application package is put together and submitted to the Regulator, approval usually comes within four weeks.
This is in sharp contrast to jurisdictions like Luxembourg, where the process could easily take eight to twelve weeks, and they charge far higher regulatory fees too. At Beauvoir, we can help you through the regulatory application process required in apply for the General Partner to be licenced in Guernsey, allowing you to retain your focus on your main job.
Once licenced, we then give your entity substance. We do this through the provision of Directors, compliance services, company secretarial services and operational support. This is real substance – substance that can be tested and substance that meets European requirements.
So Guernsey is an award winning jurisdiction, highly regarded around the world for its level of regulation, with highly competent and knowledgeable service providers. Why on earth would you domicile your fund anywhere else?
