Private Investment Fund Flyer

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Private Investment Fund A quick and flexible solution to a fund launch The PIF regime was introduced by the Guernsey Financial Services Commission (GFSC) in recognition that a flexible, cost-effective and timely product is sometimes required for a fund launch. This is particularly attractive to first-time managers or promoters looking to swiftly supply a simple product. A PIF is regulated by the GFSC and must meet the definitions of a Collective Investment Fund under the Protection of Investors Law. The product has a strong focus on robust governance, particularly in managing conflicts of interest. The GFSC expects the highest levels of corporate governance to be exercised.

PIF requirements

No more than 50 legal or natural persons holding economic interest in the fund

No more than 30 new ultimate investors can be added into the fund annually post inception

No attempt has been made to limit the number of investors

Only one adviser is permitted per structure

Management must make declaration of investors’ ability to assume losses

An external auditor must be appointed

Following a revision in 2021, there are three routes to register a PIF:

Using an established manager

A fund where all investors are considered to be Qualifying investors

Investors share a familial relationship

Why use a PIF

Flexibility in legal character

A straightforward application where only a declaration is required

No prospectus required

Regulatory approval can be obtained in 24 hours

Low set-up cost

The fund can be open/closed-ended

guernseyfinance.com


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