Guernsey Authorised Fund

Authorized collective investment schemes

Registered collective investment schemes

As Class A Funds

Class A funds are authorized for distribution to the general public and retail investors, requiring the highest level of regulatory oversight and investor protection measures, including strict investment restrictions, detailed disclosure requirements, and ongoing reporting obligations to the GFSC.

As Class B Funds

Class B funds are designed for more sophisticated investors and have a wider range of permitted investments compared to Class A funds, offering greater flexibility in investment strategy while still maintaining the regulatory standards required by the GFSC for authorized funds.

As Class Q Funds

Class Q funds are authorized specifically for distribution to qualifying professional investors, offering a more flexible regulatory framework with fewer restrictions on investment strategy, making them suitable for institutional and high-net-worth investors seeking access to a broader range of asset classes.

As Closed-Ended Funds

Closed-ended authorized funds in Guernsey have a fixed number of shares or units that are not redeemable on demand, making them suitable for longer-term and less liquid investment strategies such as private equity, real estate, and infrastructure investments.

GFSC Authorization Requirement

All Guernsey Authorised Funds must obtain formal authorization from the GFSC before commencing operations, with the application requiring a detailed prospectus, constitutional documents, and evidence that all service providers meet the required regulatory standards.

Appointment of Key Service Providers

An authorized fund in Guernsey must appoint a licensed fund administrator, custodian, and auditor, all of whom must be approved by the GFSC and meet the required standards of competence and integrity to support the fund's operations.

Ongoing Compliance and Reporting

Authorised funds must fulfill ongoing compliance obligations, including annual financial reporting, regular NAV calculations, timely investor disclosures, and immediate notification to the GFSC of any material changes to the fund's structure or investment policy.

Investor Protection Measures

Guernsey Authorised Funds must maintain strong investor protection measures, including proper asset segregation, clear risk disclosures, and robust governance procedures that ensure the fund is always managed in the best interest of all investors.

Tax Neutral Framework

Guernsey Authorised Funds benefit from a tax-neutral environment, meaning the fund itself is not subject to Guernsey income tax on investment income or capital gains, ensuring that investors are only taxed at the individual level based on their own jurisdiction's tax rules.

No Capital Gains Tax

Guernsey does not levy capital gains tax on funds or their investors, allowing the full value of investment gains to be retained within the fund and distributed to investors without any additional tax deduction at the fund level.

No Stamp Duty on Share Transfers

There is no stamp duty payable on the transfer of shares or units in a Guernsey Authorised Fund, reducing transaction costs for investors and making the fund a more attractive and cost-efficient investment vehicle.

Extensive Tax Treaty Access

While Guernsey itself has a limited number of formal tax treaties, funds domiciled in Guernsey can benefit from various tax arrangements and exemptions available through the jurisdiction's strong relationships with major financial markets worldwide.