Regulatory Alerts2023-07-21
Thematic Review of Unclaimed Client Money of Collective Investment Schemes
The Guernsey Financial Services Commission conducted a thematic review to assess the prevalence and handling of unclaimed client money within the Collective Investment Scheme industry. The review found that while unclaimed funds represent a negligible percentage of total industry assets, the issue is disproportionately concentrated in older, open-ended schemes due to factors like outstanding customer due diligence and lost investor contact. Consequently, the Commission plans to issue a consultation paper to establish consistent guidance or rules for managing unclaimed monies, emphasizing the need for clear provisions in scheme constitutional documents.
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