Guernsey: ‘Fund managers sanguine over Brexit’

As private fund managers try to decipher the UK Prime Minister’s latest remarks on Brexit, the Channel island has reported no rush to domicile firms in the jurisdiction.

Guernsey has not seen a rise in private equity firms domiciling on the island, following the UK’s vote to leave the EU.

“Fund managers have been a little more sanguine about it,” Chris Anderson, partner at Guernsey law firm Carey Olsen, told pfm. “There’s been no direct impact on fund managers’ interest in Guernsey, either positive or negative, as result of the Brexit vote.”

UK Prime Minister Theresa May has said that the country will not seek membership of the single market or the customs union, in a Brexit speech this morning. 

She also said any EU deal should give British companies the maximum freedom to trade with the bloc, without being a member.” I do want us to have a customs agreement with the EU… I have an open mind on how we do it. It is not the means that matter, but the ends,” she said.

Guernsey has adjusted its regulatory regime to make it more attractive to private fund firms.

The new Private Investment Fund (PIF) regime has two deregulatory elements to attract managers. “Funds are not required to make disclosures to the Guernsey Financial Services Commission (GFSC) and investment managers of PIFs will no longer be subject to any rules from Guernsey. This means significantly less regulation and lower costs for administration of managers. Nonetheless the GFSC has been clear that it expects the high standards of corporate governance to be maintained.”