The Range
The GFSC's Ancillary Vehicles Consultation
Need a quick overview?
We’ve found these proposals very constructive and you can comment on them until 17 June through GFSC consultation hub here.
Here’s our outline of the proposals in case you’ve yet to digest them and respond:
What's proposed to be exempt?
For carried interest vehicles:
if structured as a limited partnership, acting as GP and/or as director of the GP
if a company, acting as director
For co-investment vehicles:
if structured as a limited partnership, acting as GP and/or as director of the GP
if a company, acting as director
For single investment vehicles (SIVs):
if structured as a limited partnership, acting as GP
NOT acting as director of the GP nor of an SIV which is a company.
What would not be exempt?
Administration of an AV - it’s not a controlled investment so administering it is a fiduciary activity
Any activity in relation to single asset vehicles, but discretionary exemptions may still be available
Any activity in relation to non-Guernsey funds.
Timing points
Initial notification must be made before the activity is undertaken by way of business
No need to wait for any approval or no objection from GFSC
Ongoing notifications – within 14 days of changes or the end of the notifiable activity
Notifications do not expire or need renewal.
General points
All exemptions depend on the vehicle being administered by a fiduciary licensee (the definitions include this) and on the notification
They also depend on the vehicle being within the relevant definition – you can’t expand by analogy or “take a risk-based approach”. The structure chart submitted with the notification should explain how the vehicle is ancillary
Notifications can only be made by a fiduciary licensee, which is responsible for AMLCFT oversight of the AV and must confirm this in its declaration
Where an individual’s directorship is exempt under these proposals, it does not count towards his/her “up to 6 directorships” which are exempt under Fiduciaries Law s3(1)(g).