1) Q The global funds market faces constant change. Can you describe the key challenges and opportunities facing your business in the current market?
A The competition to attract funds to international finance centres is intensifying. Traditional centres - Dublin, Luxembourg, Cayman, Jersey and Guernsey - are continually appraising the market, regulation and current service offerings to develop enhanced regimes to stay ahead of competitor jurisdictions. The UK entered the market with the real estate investment trust (“REIT”) Onshore jurisdictions are looking to attract typical offshore work back onshore. The AIFM directive is driving Managers to consider their operations and the correct fund domicile. The demand for alternative investment products continues to grow and the challenge is to ensure the regulation, staff resources, legal and advisory services keep up with the pace. Property funds are expanding into new markets such as Russia and China where local partners have to be trained to work to the high standards required by the major stock exchanges. Real Estate Fund Administration staff resources and training are key and the Guernsey Training agency is well placed to support the industry with over 17,000 students having passed through its doors. Jurisdictions will need to be nimble and efficient in bringing laws onto the statute books to provide a sound regulatory infrastructure that is robust and yet offers speed and flexibility in the authorization process. The Registered Funds regime in Guernsey is examples of regulatory bodies moving with the times and Guernsey’s regulation will maintain Guernsey as one of the pre-eminent fund domiciles.
2) Q Guernsey recently introduced legislative change within its funds industry including a new Prospectus Law and various other significant amendments. What impact are these changes likely to have on the business prospects of Guernsey going forward?
The changes have facilitated the streamlining of existing pieces of legislation into a focused set of rules with the objective of having a pragmatic and risk based legislative framework to attract business to the island. It will be a partnership between industry and regulator to oversee the industry. The changes have created a modern infrastructure, which will enable businesses to supply their services more efficiently to a wider network of clients, including those funds domiciled outside of Guernsey. Guernsey aims to be the centre of excellence for the Real Estate Fund Administration and Private Equity Fund Administration and needs to embrace the new opportunities while maintaining its high standards.
3) Q In terms of business prospects, the Channel Islands have increasingly highlighted their respective advantages over rival centres such as Cayman for alternative fund servicing. How is the drive to attract Cayman style business to the islands progressing and what key advantages can the islands offer the promoters of alternative investment products?
A While Cayman continues to be the domicile of choice for most US based hedge fund managers, Real Estate Fund Administration and Private Equity Administration has grown in Guernsey. The knowledge in these areas has been built up by a generation of fund administrators in Guernsey who appreciate the importance of offshore domicile for investors and promoters alike.
Author Resource:
Bob Boutaleb is the author of this article on Real Estate Fund Administration .
Find more information on Guernsey Fund Administrators here.
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