Updates to Guernsey Green Fund Rules For ESG Funds

On 6 July 2021, The Guernsey Green Fund (Amendment) Rules, 2021 came into effect introducing two key changes to the Guernsey Green Fund Rules following a thematic review earlier this year.

A fund can be designated a Guernsey Green Fund if it complies with the Guernsey Green Fund Rules, which confirms that the fund meets strict eligibility criteria of green investing and has the objective of a net positive outcome on the planet’s environment.

The changes aim to reduce the administrative burden where possible, while continuing to protect investors from potential greenwashing, which is an increasing concern given growing popularity of ESG investing.

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The first change is to extend the minimum frequency over which the designated administrator is required to monitor a closed-ended fund against the notified green criteria and investment criteria from monthly to quarterly.

The minimum frequency for an open-ended fund for such monitoring remains monthly.

The second change is to introduce an ability to disclose Green Fund status via stock exchange market announcement (provided the stock exchange is recognised by the Guernsey Financial Services Commission, for example the London Stock Exchange and The International Stock Exchange), offering greater flexibility on how this disclosure requirement is met.

You can see the Guernsey Green Fund (Amendment) Rules, 2021 in full at this link on the GFSC website.

About Walkers investment fund team

Walkers has a dedicated investment funds team in Guernsey who work with a broad base of clients on a diverse range of products. We can provide a complete package of Guernsey regulatory, corporate, partnership and tax advice in relation to fund formation and on-going advice during the investment fund life-cycle. Our Guernsey team works closely with our investment funds experts across our global network to ensure that each client obtains the appropriate multi-jurisdictional advice

Matt SandersManaging PartnerT +44 (0) 1481 748 914matt.sanders@walkersglobal.com
Kate StoreyPartnerT +44 (0) 1481 748 924kate.storey@walkersglobal.com
Chris Hutley-HurstSenior CounselT +44 (0) 1481 758 950chris.hutley-hurst@walkersglobal.com
Jessica RobinsonSenior AssociateT +44 (0) 1481 748 932jessica.robinson@walkersglobal.com
Chris KnowlesAssociateT +44 (0) 1481 748 923chris.knowles@walkersglobal.com