Consultation Paper on Guidance for Custodians of Open-ended Collective Investment Schemes with Indirectly Held Assets

The Commission has issued a Consultation Paper seeking views from interested parties on a proposed Guidance Note for Custodians of open-ended collective investment schemes made under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 (the “PoI Law”).

Rules made under the PoI Law for authorised and registered open-ended collective investment schemes place requirements on the Designated Custodian to safeguard custody scheme property. Such assets may be held directly or indirectly through the use of separate legal holding structures. In seeking to fulfil its duties under the PoI Law, Designated Custodian must consider the circumstances under which it is necessary to “look through” such holding structures to the ultimate asset.

The Commission, following engagement with the local custody industry, proposes issuing guidance to assist custodians in making this consideration and providing examples of how the requirements under the PoI Law may be met.

A copy of the Consultation Paper and the Draft Guidance can be found here: https://www.gfsc.gg/commission/legislation-and-guidance

Respondents are encouraged to submit their comments by 21 October 2020, online here.

For further information or guidance, please contact the team at Aspida via info@aspidagroup.com

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