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GFSC updates Guernsey Green Fund rules

15 July 2021

Updates to the Guernsey Green Fund Rules will provide assurance to investors and those thinking of making green investments that funds which make use of the Accreditation are investing in projects that comply with the criteria for green investments set out by multi-lateral development banks.

The Guernsey Financial Services Commission has amended the rules, following feedback gathered during a thematic review of the Guernsey Green Fund Regime earlier this year.

The regulator has also updated the rules to extend the frequency of monitoring for closed-ended funds from a monthly to a quarterly basis.

The rules require a Guernsey Green Fund’s designated administrator to monitor the Guernsey Green Fund against the notified green criteria and investment criteria and are designed to reduce the administrative burden on designated administrators while maintaining the integrity of the Guernsey Green Fund regime and investors’ confidence in it.

A further modification seeks to offer greater flexibility on how a fund can meet the requirement to disclose its designation as a Guernsey Green Fund by allowing a market announcement on a recognised stock exchange as a method of making this disclosure.

GFSC Director General William Mason said: “We were happy to see the Guernsey Green Funds regime working to protect investors from greenwashing and to be able to take on board feedback by liberalising a couple of aspects of the reporting regime to reduce the administrative burden on firms and funds.”

Stephanie Glover, Green Finance Manager, welcomed the updated rules. She said:

“This update by the GFSC further demonstrates a willingness on the part of the regulator to engage with industry and to protect investors from greenwashing. Investors and those who are considering making green investments can be assured that funds which use the Guernsey Green Fund Accreditation comply with the notified criteria for green investments.

“It further cements Guernsey’s position as a leader in the green and sustainable finance space and is certain to increase the island’s attractiveness as a jurisdiction for the domiciliation of green funds.”

Responses to the paper were largely supportive. A feedback statement addressing the consultation feedback has been published on the Commission’s Consultation Hub.

The amended rules came into effect on 6 July and can be view on the GFSC’s website.

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