For over fifty years, Guernsey has been a leading jurisdiction from which to conduct investment funds business.
The Island’s close geographical proximity to the main European finance centres was originally a cornerstone for the development of the industry. However today, investment funds established in the Island are promoted or sponsored by leading institutions in more than 55 finance centres.
The Island has expertise in a wide range of asset classes including traditional open-ended equity, fixed income and fund of funds as well as an ever- increasing number of private equity and property funds. In recent years Guernsey has enjoyed a growing reputation in the field of other alternative investments, notably fine art, fine wine and forestry-related.
The Island is able to offer fund promoters a wide range of investment vehicles including unit trusts, Protected cell companies, Incorporated cell companies and limited partnerships, as well as conventional limited companies.
The Cayman Islands are one of the world’s leading domiciles for institutionally focused, specialised, financial services and are a widely-used jurisdiction for the structuring of financial services products.
With in excess of 7500 registered mutual funds, the Cayman Islands are recognised as a leading global centre for funds and are well established as home to many of the world’s most well known and respected hedge funds.
The Cayman Islands offer asset managers and fund promoters a developed infrastructure, a favourable regulatory environment and access to professional services including world class law, accounting, audit and fund administration services.
The Mutual Funds Law gives fund promoters a choice of regulatory categories. Registered mutual funds are the most common type and are exempt from the requirement to be licensed or administered by a licensed mutual fund administrator based in the Cayman Islands. Other categories of mutual fund may be exempt from regulation if for example they have 15 or fewer investors the majority of whom can control the appointment of the operator of the fund. Private equity and other closed-ended funds are not currently regulated by the Cayman Islands Monetary Authority under the Mutual Funds Law.
The legislative framework provides for a broad range of structures and coupled with the flexible nature of the regulatory regime allows for sophisticated investment strategies to be utilised in the management of the fund’s assets.