Guernsey, Ogier updates

Banking & Financial Services

Contributed by Ogier
Regulatory investigations: overview
  • Guernsey
  • 27 April 2021

The Guernsey Financial Services Commission (GFSC) routinely visits Guernsey licensees to check on their compliance with the local regulatory law, regulations and rules. The GFSC will examine and may identify deficiencies in a regulated licensee's corporate governance, management or internal controls. In those circumstances, the GFSC will require the licensee to carry out remediation work to address any contraventions or misconduct to ensure that the entity is returned to full compliance as soon as possible.

The Carlyle case – the final chapter
  • Guernsey
  • 09 March 2021

The long-running Carlyle case recently came to an end when the parties reached a non-confidential settlement. The case arose from the March 2008 collapse of Carlyle Capital Corporation Ltd, a Guernsey fund which invested mainly in residential mortgage-backed securities issued by US government-sponsored entities Fannie Mae and Freddie Mac. The case is of particular relevance now during the COVID-19 pandemic, which will likely lead to more fund collapses.

Guernsey works for hedge funds
  • Guernsey
  • 13 October 2020

This article answers FAQs relating to Guernsey hedge funds. Topics covered include funds regulation, available structures, nexus requirements, the Guernsey Green Fund and registration and authorisation timeframes.

Competition & Antitrust

Contributed by Ogier
CICRA issue new merger control guidance
  • Guernsey
  • 28 September 2017

The Channel Islands Competition and Regulatory Authorities (CICRA) have issued new guidance on the process for obtaining their approval of a notifiable merger or acquisition in the Channel Islands. The guidance implements some procedural aspects of the recommendations for the islands' merger control regime overhaul which CICRA published in September 2016.

Corporate & Commercial

Contributed by Ogier
Snapshot: application to court for restoration of Guernsey company
  • Guernsey
  • 03 May 2021

In Guernsey, there is a relatively quick and easy process for restoring companies to the Register of Companies when they have been struck off and dissolved. Applications can be made by various parties to the Non-contentious Court, which will deal with the matter 'on the papers'. However, if a party is likely to oppose the application to restore, an application should be made to the Ordinary Court and court attendance will be required.

Director disqualification: 12-year disqualification penalty imposed
  • Guernsey
  • 19 April 2021

When considering the penalties imposed on directors of Guernsey companies for misconduct or breaches of the Companies (Guernsey) Law 2008, arguably the most serious penalty which can be imposed is a disqualification order. Such an order can, at its highest, be career ending for a director, with the maximum period of disqualification being 15 years. This article examines a recent decision in which the Royal Court imposed a disqualification period of 12 years.

Guernsey companies – an overview
  • Guernsey
  • 26 October 2020

The benefits of using a Guernsey company are extremely wide but generally include separate legal identity, limited liability for shareholders and ease of transfer of ownership. These features, coupled with a tax-neutral environment in Guernsey for most companies, enable Guernsey companies to be structured to meet a wide variety of business purposes – from commercial trading and joint ventures to investment holding vehicles.

Migration of foreign limited partnerships into Guernsey
  • Guernsey
  • 24 August 2020

The States of Guernsey has adopted regulations permitting foreign limited partnerships to migrate or continue into Guernsey using the statutory migration process set out in the Limited Partnerships (Guernsey) (Migration) Regulations 2020. In conjunction with the fast-track process for the licensing of managers, Guernsey now provides an expedient and streamlined process for migrating fund structures into the jurisdiction.

Directors' duties and corporate governance
  • Guernsey
  • 17 August 2020

Directors' duties are the duties owed by executive and non-executive directors to the companies to which they are appointed and are personal to each director. By comparison, corporate governance is the collection of principles and practices surrounding how a company is operated and is the collective responsibility of the board of directors as a whole rather than each individual personally.

Corporate Finance/M&A

Contributed by Ogier
Guernsey ticks right boxes to attract increasing private equity investment from United States
  • Guernsey
  • 04 November 2020

Guernsey ticks all the right boxes when it comes to private equity – both private and listed. Importantly, Guernsey's private equity regime is simple and established, with sensible proportionate regulation which recognises the sophistication of managers and their investors. Guernsey is the ideal gateway to the United Kingdom and the European Union for US managers who continue to make use of private placement regimes in all of the key markets.

Resilience and sustainability in a changed environment
  • Guernsey
  • 09 September 2020

As the world emerges from the COVID-19 pandemic, every industry must take stock and evaluate the changes that are here to stay and the adaptations required to suit the new environment. This article examines the developments in and resilience of Guernsey's funds industry. Notably, it is clear that the government continues to support the funds industry and recognises the importance that private equity and sustainable finance play in the longevity of Guernsey as a financial centre.

Secured lending in Guernsey
  • Guernsey
  • 12 August 2020

Guernsey entities continue to be popular in asset-holding structures and, accordingly, lenders are regularly asked to put in place financing arrangements involving Guernsey entities. This article provides an overview of the mechanism under Guernsey law for the creation and enforcement of security over certain Guernsey-situated assets, such as the shares in a Guernsey company, certain contract rights and monies in a Guernsey bank account.

Practical comparison between two of Guernsey's most flexible regulated fund products
  • Guernsey
  • 05 August 2020

This article provides a practical comparison between two of Guernsey's most flexible regulated fund products: the registered collective investment scheme (registered schemes) and the private investment fund (PIFs). Both registered schemes and PIFs are used across all fund types and asset bases – from private equity funds investing in sustainable energy to hedge funds investing in smart technology.

New fast-track licensing regime for managers of overseas collective investment schemes
  • Guernsey
  • 22 July 2020

The Guernsey Financial Services Commission recently announced the launch of a new fast-track application regime for managers of overseas collective investment schemes. The intention is to make the process as simple as possible for such managers looking to apply for a Guernsey licence. The regime is available for managers migrating to Guernsey, as well as managers looking to establish a new Guernsey entity.

Corporate Tax

Contributed by Ogier
Economic substance update: COVID-19 concessions, self-managed funds and partnerships
  • Guernsey
  • 05 February 2021

For many Guernsey tax-resident companies, the onset of the COVID-19 pandemic created difficulties in complying with economic substance requirements. As such, in November 2020 the Revenue Service released guidance confirming that it will take a pragmatic approach when assessing whether the substance requirements have been met by a company during periods where government-imposed restrictions were in place (including restrictions imposed by governments in other jurisdictions).