Guernsey Funds Forum

Thursday 16 May 2019

Guernsey Funds Forum 2019

Why Guernsey? 1

Debt & alternative finance 2

Private Equity UK 3

Luxembourg vs Guernsey 4

Guernsey Green Finance 5

Bermuda vs Guernsey 6

Company Law 7

Cayman vs Guernsey 8

  1. Guernsey has been an international finance centre for more than 50 years and there are five core pillars to its finance industry: insurance, investment funds, trust & company (including pensions), investment management and banking. Our Why Guernsey? brochure goes into further detail about Guernsey's financial services offering and the attributes which set it apart from others.
  2. In the decade since the financial crisis, a slew of regulations have increased the capital requirements of traditional lenders, leading to a huge reduction in their lending capabilities. This has presented an opportunity for alternative finance. Among them, investment funds and peer-to-peer (P2P) lending platforms are serving as a conduit between lenders and borrowers.
  3. Guernsey has an investment funds industry which has found its niche as a centre for private equity and especially those seeking to raise capital through international stock exchanges. The fact that Guernsey has experience dating back to the early 1980s when private equity funds were in their infancy is reassuring for fund promoters looking for a jurisdiction where private equity works.
  4. As currently implemented, the Alternative Investment Fund Managers Directive (AIFMD) leaves most fund managers with two choices when marketing their products to EU investors. This guide compares the passport with NPPR and concludes that the latter offers access to most European investors and does so quickly and cheaply.
  5. The Sustainable Development Goals, a collection of 17 global goals set by the United Nations, are mankind’s most ambitious effort to date to secure its future on earth. The International Panel on Climate Change estimates that around USD 2.4 trillion or roughly 2.5% of global GDP annually needs to be invested in the energy system between 2016 and 2035 to meet the 1.5 degree goal. It is therefore important for financial centres such as Guernsey to adapt to the increasing demand for green investments. As a responsible global citizen, it is Guernsey’s intention to contribute its expertise and experience as a global finance centre to the fulfilment of these goals through the work of Guernsey Green Finance – our dedicated initiative to green and sustainable finance.
  6. In recent times, Bermuda has become the de-facto choice when insurers or their customers are choosing an offshore centre for (re)insurance. However, more than ever before, Guernsey provides a credible alternative. This guide compares both jurisdiction’s social, political and macroeconomic environments and makes the case for European (re)insurers to consider an offshore base closer to home.
  7. Guernsey is a popular jurisdiction in which to incorporate companies for use on a wide range of transactions, including investment funds, private equity, structured finance and securitisations. Along with providing an at-a-glance comparison of company law in Guernsey, Jersey, the British Virgin Islands and the Cayman Islands, this guide sets out the types of company available under Guernsey law, and the basic principles of Guernsey law in respect of companies.
  8. All of the base erosion and profit shifting (BEPS) actions have the potential to affect investment fund structures, many of which are wholly or partially domiciled in international finance centres (IFCs) such as the Cayman Islands or Guernsey, and now is the time to ensure that sufficient ‘substance’ is located in your chosen IFC. This guide compares both jurisdictions’ record on investment and risk management, corporate governance and tips its cap to Guernsey’s new private investment fund.