The business environment in Guernsey offers:

• A long-standing reputation for allowing only quality business
• Sophisticated telecommunications and business infrastructure
• Closely regulated business environment with a high degree of political stability
• No exchange controls, low taxation levels on income and no taxes on capital gains,
  succession or inheritance
• A wealth of expertise in financial management, with many of the world’s major banks and
  accounting firms established on the island
• A central time zone, conveniently located between the North American and Asian time zones

Guernsey Law Relating to Collective Investment Schemes

Guernsey’s legal system, although initially coloured by the legal process of the Duchy of Normandy, now follows the principles of English law with regard to contract, tort, criminal and company law. This has been confirmed with English as the official language and the training of advocates as
barristers or solicitors in England and Wales, Scotland or Northern Ireland as a prerequisite of their being called to the Guernsey Bar.

Finance business in Guernsey is closely supervised and regulated by the Guernsey Financial Services Commission (GFSC), a statutory body that was established in February 1988. To ensure Guernsey’s fund sector remains competitive, the GFSC consults with the local finance community when undertaking legislative changes.

All entities formed in or administered from Guernsey intending to raise money from the public by means of an issue of shares or units, need approval from the GFSC acting on behalf of The States of Guernsey Advisory and Finance Committee under the terms of the Control of Borrowing (Bailiwick of Guernsey) Ordinances, 1959 to 1989, as amended (COBO) and clearance from the local Income Tax Administrator.
In addition, Collective Investment Schemes require authorisation under The Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended (POI Law).

The GFSC’s duty is to protect and enhance the island’s reputation as a financial centre andconsequently there is a policy of selectivity which means that, in considering an application for a fund, great weight is given to the status of the intended promoters.