by Paul Bannier | Sep 23, 2022 | News
Representatives from Icorserv recently attended events on the first day of Sustainable Finance Week 2022. Participants in panel discussions included Emma Howard Boyd, Chair of the UK’ s Environment Agency, who gave the audience insight into the challenges faced by organisations when factoring nature and biodiversity into their ESG programmes. The most interesting news that broke on that day was that Guernsey is to supplement its existing Green Fund regime with a new Natural Capital Fund. The Natural Capital Fund is intended to provide a regulatory “overlay” to the existing fund regimes. We expect it to be attractive to fund promoters wishing to target investments in biodiversity and natural capital projects that make a positive contribution to the natural world. Notably, the regulatory designation is also open to investment funds whose portfolio assets aim to significantly reduce harm to the natural world, even though such assets may not otherwise be viewed as “green”. This may include investment projects that aim to reduce pollution, or technological developments that improve existing environmentally damaging processes, thus mitigating or reducing the impact of such processes. If you would like to know more about the Natural Capital Fund, the existing Guernsey Green Fund or indeed any of fund structuring options available in Guernsey, please do not hesitate to contact...
by Paul Bannier | Apr 19, 2022 | News
Recent tragic events in the Ukraine have bought into focus the potential need to side pocket or ring fence assets that are either hard to price, illiquid or otherwise subject to some form of sanctions. The creation of side pockets, liquidating trusts and special purpose holding structures, all of which were designed to achieve a similar outcome was widespread at the time of the 2007/8 financial crisis, particularly in the hedge fund industry. For those not familiar, a “side pocket” is a mechanism used by open ended funds in particular to ring-fence or otherwise segregate from the rest of the investment portfolio assets for which a price cannot readily be determined or are otherwise cannot be sold. Such action is needed to allow the fund to operate in a relatively normal manner and accept subscriptions and redemptions from investors. Before issuing side pockets – or more particularly the Class S shares by which investors hold their exposure to side pockets, it is essential to review the fund’s constitutional documents very carefully and to ensure that the fund’s administrator and custodian / prime broker have a clear understanding of how the side pocket will operate – and have the systems are in place to support the specified method of operation. There are a number of pitfalls for the unwary. Careful thought needs to be given to how the costs of servicing the side pocket will be met and how investors will eventually receive value when the sanctioned or illiquid asset becomes realisable or a fair price can otherwise be established. The team at Icorserv have experience in the structuring, operation...
by Paul Bannier | Sep 27, 2021 | News
I recently attended an excellent Chartered Governance Institute conference which examined how Covid-related lockdowns had forced most boards to meet using virtual means and whether such virtual meetings were as effective as when board members are sitting together around the board room table. The answer to that particular question is one for a separate article but one of the panel sessions considered how boards deal with ESG topics. The panellists made a number of quite thought-provoking points one of which got me thinking about governance in the context of ESG. In the last thirty years a number of reviews were carried out in the UK into standards of corporate governance. These were largely triggered by a series of high-profile corporate failures. Sadly events at Carillion, Wirecard and others show that perhaps unsurprisingly, these continue to occur today. In particular the panel discussions made me wonder whether governance (at least in the context of ESG) has been somewhat overshadowed by the arguably more fashionable environmental and social factors. With good reason there has been plenty of focus both from investment managers, shareholders and various other pressure/ interest groups on the need to ensure companies reduce their carbon footprint and take other tangible measures to combat the effects of climate change. Likewise, companies are regularly questioned about the treatment of their own workforce and that of their supply chain in order to ensure that the principles of diversity, fair pay and human rights are respected. Responsibility for the governance of companies ultimately rests with the board of directors which sets the tone for the organisation. It involves interaction between the board,...
by Paul Bannier | Mar 15, 2019 | News
Well, what a week this has been in UK politics! After several days of fierce debate, the UK parliament voted yesterday to ask the EU for a delay to Brexit. No doubt for those managing UK-based businesses, this is likely to lead to a further period of uncertainty. In contrast, this week has seen two significant announcements in Guernsey which further enhance the Island’s reputation as a stable, secure financial centre. The first was an announcement that the EU Council’s Code of Conduct Group and the European Council of Finance Ministers has confirmed that the Island has satisfied its legal substance requirements for entities operating in or through the jurisdiction. This effectively removes the Island from the “grey list” and arguably gives the Island a competitive advantage over the likes of Cayman, BVI and Bermuda. The second was news that the Guernsey Financial Services Commission has signed a Memorandum of Understanding with the Financial Conduct Authority in the UK. This MOU is separate to the market access agreement with the 28 EU Member States that is already in place and was necessary to ensure continued market access for Guernsey investment funds into the UK after Brexit. As a long-established finance centre, clients choosing to domicile or invest in funds and other structures in Guernsey can do so confident that the Island meets international standards and has the stability which is so often lacking in other jurisdictions. If you would like to know more about either of the above topics or require further information about setting up an investment fund or fund management company in Guernsey, please contact Independent Corporate...
by Paul Bannier | Oct 15, 2018 | News
Icorserv was pleased to see that Guernsey has been recognised in the 2018 Investment Week awards as the Best Centre for Fund Administration for the second year in a row. The jurisdiction faced stiff competition from Luxembourg, Dublin, Cayman and others, but the judges considered that Guernsey offered a wide range of administration support for the fund management industry on an international basis. Key to the Island’s success were examples of innovation, new financial products and technology including the Guernsey Green Fund and blockchain solutions for private equity. Recent statistics released by the Guernsey Financial Services Commission show increases in the net asset value of Guernsey-domiciled funds under management and administration across both open and closed ended fund sectors. In addition there was a significant increase in the value of funds for which management or administration is carried out on the Island, although the fund itself is domiciled...
by Paul Bannier | Sep 23, 2018 | News
Representatives of Icorserv will be attending the annual GIFA/AIMA Autumn Update in London on 7 November 2018. The panel of speakers at this popular event are due to discuss current topics including the options facing fund promoters as they try to attract new investors into alternative investment funds. The panel will also be discussing the increasing attention being paid, particularly by tax authorities, to substance – or in some cases, the lack of it! If you would like to attend this breakfast-time event, please contact us at...
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