The Guernsey Financial Services Commission (FSC) has announced a streamlined and simplified Private Investment Fund (PIF) regime.

The new regime seeks to create an innovative, marketable, and flexible fund structure for a wide range of private capital investment strategies.

It merges the two routes of the previous PIF regime into a single pathway for qualifying private investors.

The Family PIF, a structure tailored to family offices and high net worth individuals, will be retained as a separate route to market.

“The commission is committed to ensuring Guernsey is appropriately positioned internationally as an attractive hub for business, with sensible and usable regulations that meet best practice in other significant international finance centres,” said Guernsey FSC director general, William Mason.

“The new look PIF regime is an example of this commitment, and our focus on enhancing Guernsey through innovation, simplicity and ease of use.”

The streamlined regime for qualifying private investors will look to add flexibility with additional options to qualify as a private investor, including licensee-warranted investors.

The commission has also removed the compulsory audit requirement and the upper limit to the number of offers that can be made, as long as it is done on a private basis to qualifying investors.

“The PIF remains a regulated product with a strong focus on corporate governance, including managing conflicts of interest, but with additional flexibility and optionality,” Mason added.

Also commenting on the announcement, Guernsey FSC deputy director general – investment, fiduciary, and pension division, Gillian Browning, said: “We would like to thank industry associations and representatives for their feedback and input into how we could simplify the PIF regime whilst retaining many of the key features.

“Those applying can still take advantage of the PIF’s speed to market, with regulatory approval in as little as 24 hours. This speed and ease of applications has been further bolstered with the launch of our new Applications and Authorisations Portal.

“The new, secure online portal will make it even easier for those wishing to undertake business in Guernsey, and will support online collaboration and communication throughout the process, both between parties drafting an application prior to submission, and with the commission post-submission.

“Our staff are available for any enquiries and are happy to talk to those who wish to discuss innovative structures or prospective applications, including PIFs.”

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