Guernsey updates

Banking & Financial Services

Guernsey works for hedge funds
Ogier
  • Guernsey
  • 13 October 2020

This article answers FAQs relating to Guernsey hedge funds. Topics covered include funds regulation, available structures, nexus requirements, the Guernsey Green Fund and registration and authorisation timeframes.


Corporate & Commercial

Guernsey companies – an overview
Ogier
  • Guernsey
  • 26 October 2020

The benefits of using a Guernsey company are extremely wide but generally include separate legal identity, limited liability for shareholders and ease of transfer of ownership. These features, coupled with a tax-neutral environment in Guernsey for most companies, enable Guernsey companies to be structured to meet a wide variety of business purposes – from commercial trading and joint ventures to investment holding vehicles.

Migration of foreign limited partnerships into Guernsey
Ogier
  • Guernsey
  • 24 August 2020

The States of Guernsey has adopted regulations permitting foreign limited partnerships to migrate or continue into Guernsey using the statutory migration process set out in the Limited Partnerships (Guernsey) (Migration) Regulations 2020. In conjunction with the fast-track process for the licensing of managers, Guernsey now provides an expedient and streamlined process for migrating fund structures into the jurisdiction.

Directors' duties and corporate governance
Ogier
  • Guernsey
  • 17 August 2020

Directors' duties are the duties owed by executive and non-executive directors to the companies to which they are appointed and are personal to each director. By comparison, corporate governance is the collection of principles and practices surrounding how a company is operated and is the collective responsibility of the board of directors as a whole rather than each individual personally.

Electronic signing of documents in light of COVID-19
Ogier
  • Guernsey
  • 04 May 2020

With self-isolation and social distancing now the rule rather than the recommendation, working from home has become the norm. Although these actions have proven necessary, they also present certain logistical and administrative obstacles to companies continuing their business efficiently and effectively. Key questions in this regard are whether the directors of a Guernsey company can execute documents electronically and whether they can rely on documents executed in such a manner.


Corporate Finance/M&A

Guernsey ticks right boxes to attract increasing private equity investment from United States
Ogier
  • Guernsey
  • 04 November 2020

Guernsey ticks all the right boxes when it comes to private equity – both private and listed. Importantly, Guernsey's private equity regime is simple and established, with sensible proportionate regulation which recognises the sophistication of managers and their investors. Guernsey is the ideal gateway to the United Kingdom and the European Union for US managers who continue to make use of private placement regimes in all of the key markets.

Resilience and sustainability in a changed environment
Ogier
  • Guernsey
  • 09 September 2020

As the world emerges from the COVID-19 pandemic, every industry must take stock and evaluate the changes that are here to stay and the adaptations required to suit the new environment. This article examines the developments in and resilience of Guernsey's funds industry. Notably, it is clear that the government continues to support the funds industry and recognises the importance that private equity and sustainable finance play in the longevity of Guernsey as a financial centre.

Secured lending in Guernsey
Ogier
  • Guernsey
  • 12 August 2020

Guernsey entities continue to be popular in asset-holding structures and, accordingly, lenders are regularly asked to put in place financing arrangements involving Guernsey entities. This article provides an overview of the mechanism under Guernsey law for the creation and enforcement of security over certain Guernsey-situated assets, such as the shares in a Guernsey company, certain contract rights and monies in a Guernsey bank account.

Practical comparison between two of Guernsey's most flexible regulated fund products
Ogier
  • Guernsey
  • 05 August 2020

This article provides a practical comparison between two of Guernsey's most flexible regulated fund products: the registered collective investment scheme (registered schemes) and the private investment fund (PIFs). Both registered schemes and PIFs are used across all fund types and asset bases – from private equity funds investing in sustainable energy to hedge funds investing in smart technology.

New fast-track licensing regime for managers of overseas collective investment schemes
  • Guernsey
  • 22 July 2020

The Guernsey Financial Services Commission recently announced the launch of a new fast-track application regime for managers of overseas collective investment schemes. The intention is to make the process as simple as possible for such managers looking to apply for a Guernsey licence. The regime is available for managers migrating to Guernsey, as well as managers looking to establish a new Guernsey entity.


Employment & Immigration

Expanded powers for Employment and Discrimination Tribunal
Ogier
  • Guernsey
  • 18 November 2020

The Employment and Tribunal (Guernsey) Order 2020 enhances the tribunal's powers to dismiss or strike out complaints without merit. This is fantastic news for both employers and employees with valid defences or claims facing unnecessarily difficult opponents. The tribunal's powers are now significantly increased to be able to dismiss unmeritorious claims at the outset and bring cases to an end at any stage of proceedings where the conduct of either side becomes unacceptable.

COVID-19: government financial support for employers
Ogier
  • Guernsey
  • 17 June 2020

This article outlines the financial support available to employers in Guernsey that have been adversely affected by measures introduced to manage the spread of COVID-19. Such support includes the payroll co-funding scheme, grants for small businesses and the self-employed, the Hardship Fund and deferrals of social security.

Often overlooked competition law aspects of restrictive covenants in contracts
  • Guernsey
  • 19 June 2019

The perennial conversations around restrictive covenants in employment contracts and service contracts of a similar nature are familiar. Employers want maximum restriction on employees who leave but must be careful not to overstep the mark as covenants which are unduly restrictive risk being struck out by the courts.


Insolvency & Restructuring

Company administration regime
Ogier
  • Guernsey
  • 19 June 2020

The Companies Law provides for companies, protected cell companies, incorporated cell companies and cells thereof to be placed into administration and for an administrator to be appointed to manage their affairs while the administration order remains in force. In January 2020 an ordinance was passed, introducing various changes to insolvency law in relation to both administrations and liquidations. This article sets out the changes which affect new administrations.

COVID-19 restructuring and corporate recovery measures
Ogier
  • Guernsey
  • 22 May 2020

Many of the key emergency legislative measures put in place to combat the effects of COVID-19 have been aimed at protecting the local economy, with the focus on the prevention of insolvency rather than insolvency itself. These measures include a payroll co-funding scheme, a grant for small businesses and the self-employed and a guarantee scheme, under which the states will work with the high street banks to provide loans to trading businesses with an annual turnover of less than £10 million.

2020 heralds insolvency law changes
Ogier
  • Guernsey
  • 07 February 2020

The States of Guernsey recently passed the Companies (Guernsey) Law 2008 (Insolvency) (Amendment) Ordinance 2020, making Guernsey an even more desirable forum for insolvency proceedings. The changes show that Guernsey is prepared to arm insolvency office holders with the necessary tools and powers to tackle, draw in and preserve the assets of an insolvent company for the benefit of creditors.

Royal Court issues letter of request to High Court
  • Guernsey
  • 11 January 2019

Two joint administrators recently applied to the Royal Court of Guernsey seeking an order that it issue the High Court of Justice of England and Wales with a letter of request to act in aid of and auxiliary to the Royal Court in recognising their appointment as administrators of a company. While the Royal Court has dealt with incoming letters of requests, in making the application, counsel was unaware of any case where the Royal Court's jurisdiction to issue a letter of request had previously been considered.