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
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