Guernsey is set to launch the world’s first regulated green investment fund product after the island’s financial services regulator, the Guernsey Financial Services Commission (GFSC), published a set of draft green fund rules for consultation.
Guernsey will now enable fund managers to apply for a green label for their funds if they can demonstrate compliance with defined green rules.
The fund will be open to all types of new and existing funds, authorised, registered, Guernsey private investment funds, open-ended and closed-ended, with different levels of certification available.
The international finance centre has focused on green investment as one of five strands of its new financial services development strategy, rolled out at the beginning of the year.
According to Guernsey Finance, the fund will assure investors that their investments are being used for environmental purposes, which are established and monitored against a reliable set of standards.
Andy Sloan, acting director of strategy at the industry promotional agency at Guernsey Finance, said: “This move is part of our strategy to be the leading jurisdiction for green investment, offering the most comprehensive product, and we believe this is a world-first.”
He added: “Guernsey has the benefit of already being a secure and experienced jurisdiction in which to hold investments and has the wealth of knowledge and expertise necessary to build a green fund platform on top of existing versatile structures.”
“Showing that we are capable of committing finance to the environment is a strong indication that Guernsey is an innovative and forward-thinking place in which to do business and demonstrates that we are mindful of international climate obligations.”
