All authorised and registered open-ended collective investment schemes must have a designated manager and a designated trustee or custodian incorporated and resident in Guernsey. The fund may appoint an investment manager established in any jurisdiction but it is usual for a promoter to establish its own management company to act as investment manager in Guernsey. The manager may have a physical presence in Guernsey or may be an administered entity and it may delegate investment management to a manager in the promoter’s group or to a third party manager.
For a B Scheme the designated trustee or custodian has a dual function, to safeguard the assets on the one hand and on the other to exercise oversight of the management and administration of the fund by the manager. For a Q Scheme, the role of the designated trustee or custodian is broadly limited to that of responsibility for the custody of scheme property and ensuring that sub-custodians are fit and proper.
The regime for closed-ended funds is more flexible than that for open-ended funds. There is no obligation to appoint a custodian. However, the GFSC’s expectation is that closed-ended funds will at least need to be satisfied that appropriate arrangements are in place for the safekeeping of the assets. It is, however, always necessary for a Guernsey-based administrator to be appointed to a Guernsey fund.
Guernsey has a choice of high quality service providers with the resources and experience required to deliver the necessary advice required when launching funds through to their day to day administration. The infrastructure and proximity of the service providers in Guernsey, as well as the GFSC, results in effective and efficient access to everything and everyone related the funds business.