Regulatory Alerts2020-11-23
Collective Investment Schemes (Compensation of Investors) Rules 1988
The Guernsey Financial Services Commission establishes a compensation scheme to protect investors in Class A authorised collective investment schemes by creating dedicated funds and defining participant liabilities. The rules mandate that the Commission pay up to 90% of eligible liabilities to investors when a participant defaults, subject to specific caps and exclusions for professional or experienced investors. To fund these payouts, the Commission levies contributions on all participants, enforces subrogation rights to recover costs from defaulting entities, and requires full cooperation from licensees and their administrators.
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