The long-awaited review of the investment sector legislation and regulation in Guernsey is approaching its final stages. The finance industry policy working party has reviewed the current legislation not only in Guernsey but elsewhere. It has considered the proper focus of such regulation and also how that focus can be applied appropriately in a competitive environment.
By way of background, as at 31 December, 2005, there were 233 open-ended funds (1,103 separate portfolios, value £48.2bn) and 351 closed-ended funds (value £31.1bn). Over five years, open-ended portfolios have broadly doubled in number and tripled in value; closed-ended funds have increased by about 30% in number and 2.5 times in value. Interestingly, non-funds-specific investment business accounts for approximately 65% of all licences issued under the Protection of Investors (POI) Law.
