The new regulations allow a range of structures, such as private equity vehicles and collective investment funds, to locate in Guernsey.
Guernsey has introduced new regulations which will allow limited partnerships to migrate to the island. This comes after the international financial centre adopted a law in June to fast-track moves of funds and managers.
The Limited Partnerships (Migration) Regulations 2020 will allow limited partnerships - commonly company structures, private equity vehicles or collective investment funds - seeking the security of a jurisdiction such as Guernsey.
The island’s limited partnerships law was introduced 25 years ago. Guernsey, like its peers in Europe and further afield, continues to compete for business, seeking to attract private client and corporate entities.
“Companies and fund managers today are looking to jurisdictions that can and have met new global standards on economic substance,” Rupert Pleasant, Guernsey Finance chief executive, said. “Guernsey has always had genuine substance in financial services. Our whitelisted position genuinely sets us apart from other jurisdictions which have not met these criteria, and we will continue to build on this position of strength.”
Pleasant’s reference to “substance” refers to transnational organisations - such as the Organisation for Economic Co-Operation and Development and the European Union - stipulating that offshore-registered entities should involve a certain level of economic activity (offices, staff, processes, etc) rather than just a registration address.