Qualifying Investor Funds (“QIF”)
Applicable law
Regulatory permissions are issued under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 ("the POI Law").
Applicable rules
Depending on the type of scheme for which application is made, one of the following fund rules will also apply:
- The Authorised Collective Investment Schemes (Class B) Rules and Guidance, 2021;
- The Collective Investment Schemes (Qualifying Professional Investor Funds)(Class Q) Rules and Guidance, 2021;
- The Authorised Closed-Ended Investment Schemes Rules and Guidance, 2021.
Guidance
For full details of the QIF application process please refer to the Guidance on Qualifying Investor Funds.
Specific criteria and principles
The following information is in addition to the guidance found at 'New Applicants'.
APPLICABLE FUNDS
Authorised open-ended and closed-ended schemes can apply as QIFs. The following also applies:
- Only qualified investors are permitted to invest in a QIF;
- A qualified investor is deemed able to evaluate the risks and strategy of investing in a QIF and to bear the economic consequences of investment in the QIF including the possibility of any loss arising from the investment;
- Application Form QIF must be signed by the proposed designated manager of the scheme.
DECLARATIONS
Application Form QIF contains declarations given by the proposed designated manager to the Commission and the Commission attaches great importance to these declarations. It expects applicants to be able to demonstrate that they have documentary evidence to support the declarations given, and to be able to produce that evidence immediately should the Commission request it. Applicants who cannot substantiate their applications may find themselves excluded from participation in the QIF regime.
QIF Application Pack
The QIF application pack must contain:
APPLICATION FORM
A fully completed, signed and dated Form QIF, Form APB/APC/APQ, as appropriate, together with Form GFA.
APPLICATION FEE
The fee is non-refundable.
PROSPECTUS
The final version together with the investor application form, subscription agreement or equivalent documents.
CONSTITUTIVE DOCUMENTS
Evidence that the scheme has been incorporated (if a company) or otherwise established to include the articles of incorporation, trust deed or limited partnership agreement.
AGREEMENTS
All material agreements entered into by the scheme.
CLASS B SCHEMES
Receipt of a certificate from the Manager or from an approved law firm certifying the information scheduled in the Class B Rules.
CLASS Q SCHEMES
Receipt of a certificate from the Manager certifying the information scheduled in the Class Q Rules.
CONTROLLERS, DIRECTORS AND SENIOR OFFICERS OF THE PROMOTER
Personnel who will exercise control or a significant function relating to the application must submit Online Personal Questionnaires through the Online PQ Portal.
Application process
We will assess and review the application pack and inform the applicant, or its professional advisers, of any matters requiring expansion or clarification. Once all queries have been satisfied, the application will be referred to a decision-maker. A formal response will follow decision-making.
Timeframe
INDICATIVE TIMEFRAME
The Commission will declare the scheme authorised within three full business days of receiving the QIF application. If the application pack is incomplete the application clock will not commence until all documentation and information has been submitted.
APPLICATION QUALITY
Any minor queries resulting from the Commission's initial assessment of the application will be referred back to the prospective Guernsey administrator acting on behalf of the applicant with the aim that resolution of the issue can be achieved within the three day period.
WRITTEN RESPONSE
We reserve the right to reset the application clock if the nature and number of issues requiring expansion and clarification are substantial.
Application conclusion
AUTHORISATION
Successful applicants will be issued with authorisation by way of letter.
CONDITIONS AND DEROGATIONS
Any formal conditions to be imposed upon the authorisation of open-ended investment schemes or any derogations from or modifications of the rules will be incorporated into the final authorisation letter.
ANNUAL FEE
Upon licensing, the annual fee becomes due, which is reduced pro rata in the first year; an invoice will be sent with the authorisation letter.