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Guernsey launches the Manager Led Product

31 May 2016

Written by James Travers

On May 11 the Guernsey Financial Services Commission (the Commission) announced the launch of the Manager Led Product (MLP).

As announced at consultation, this phase of product development is aimed at alternative investment fund managers (AIFMs) seeking to market into one or more EU Member States under the national private placement regime (NPPR).

The MLP follows the announcements of similar products by Luxembourg and Ireland but, unlike the RAIF and GIAIF, was available for use by managers and promoters on May 11.

Quick & Easy

Under the MLP regime, all regulatory standards are borne by the AIFM and, by virtue of the AIFM’s sponsorship, no alternative investment fund or underlying licensee will have rules imposed on it. The MLP regime avoids duplicating regulatory requirements over several entities and derogation requests acceptable to the host country will be considered by the Commission.

The Commission will be able to register the fund and license any underlying licensee within 24 hours of notification.

Unless it meets one or more of the exemptions set out in the AIFMD, the MLP regime allows the AIFM to manage AIFs whatever their legal form.

Ensuring protection of investors

Investor protection is ensured through the Commission imposing the AIFMD Rules and the Licensees (Conduct of Business) Rules on the AIFM.  Administrators and depositaries are also required to comply with the Licensees (Conduct of Business) Rules.

Incidence of capital adequacy requirements fall solely on the AIFM.  There will be no further requirements at the level of any general partners (or other managers formed solely for the purpose of a fund structure).

To learn more, download the Guidance Note on Applications/Notifications in respect of the Manager-Led Product here.

Next steps

It is the ambition of the Commission to extend Guernsey’s suite of MLPs to include a similar offering for marketing outside the European Union.  Watch this space!

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