Introducing Fund as a Service (FaaS)

International Investment Funds PCC Limited ("IIF") is a self managed open-ended investment Protected Cell Company, established in Guernsey and governed by the provisions of the Companies (Guernsey) Law, 2008, as amended .

In short that means IIF can host multiple segregated fund cells within its single legal identity. Each fund cell operates independently, meaning that the assets, liabilities and financial risks of one fund cell are insulated from, and do not imapct on, those of other fund cells.

Each fund cell therefore benefits from:

• Independence: Each fund cell functions independently, with its own management, investment strategy, financial performance and investors.
• Shared Governance: While fund cells are independent, they all share a common governance structure and legal identity, including the board of directors which oversees the overall PCC and all fund cells.
• Cost Efficiency: By operating under one legal entity, our fund cells can share central base costs, leading to potential savings as new fund cells are added and total assets increase.
• Third-party providers: IIF has contracted with a number of top-tier providers across banking, custody, administration, audit and legals, providing significant time and cost efficiencies for new fund celll establishment when compared with launching a standalone fund.

Yes, International Investment Funds PCC Limited ("IIF") as a whole, including all fund cells, is regulated by the Guernsey Financial Services Commission ("GFSC"). It's worth taking another look at the structure, but from a regulatory persepctive to understand what is permissable. 

• Regulatory Oversight: IIF is an Authorised Class B Scheme open-ended investment Protected Cell Company regulated by the GFSC. This means it has obtained authorisation to operate in accordance with the GFSC's requirements, ensuring compliance with laws and regulations.
• Investor Types and Fund Information: Class B Funds can be marketed to institutional or professional investors and advisers. The Class B rules lay down requirements as to the information which must be contained in the principal documents (including the Offering Memorandum and Supplemental Scheme Particulars for individual fund cells),
• Investment Flexibility: The Class B rules do not impose specific restrictions on investment, borrowing or hedging powers. This allows for a wide range of investment strategies and asset classes.
• Risk and Disclosure: The Class B rules are generally designed to be flexible whilst at the same time reflecting best practice. The overriding requirement is that the assets of a Class B Fund must be invested with the aim of spreading risk and risk disclosures are provided to ensure that investors are aware of the potential risks associated with the investments.
• Compliance Requirements: While they enjoy greater flexibility, Class B Funds must still adhere to specific compliance obligations, including ongoing reporting and governance standards to protect investors and maintain market integrity.

Guernsey continues to be a stable and resilient jurisdiction for fund managers looking to raise and  deploy capital across the world, tried and tested over the last 50 years.  

Choosing to host a fund in Guernsey presents several advantages:

• Access to Global Investors and Connectivity with Global Markets: 80% of global wealth is accessible by a Guernsey fund.
• Robust Regulatory Environment: Overseen by the Guernsey Financial Services Commission, managers and investors enjoy the security of this well-regulated financial system. 
• Tax-Neutral Jurisdiction: Managers and investors can take advantage of a tax environment that supports business and investment growth.
• Experienced Financial Services Ecosystem: This award-winning international finance centre is populated with experienced and expert professionals and service providers.

For further information on Guernsey and it's status as a leading international finance centre, you may want to visit the Guernsey Finance website.

As previously discussed, one of the advantages of a Guernsey fund is that it can be accessible by 80% of the world's wealth. Funds may be invested in from all over the world - you can see where in this useful document, produced by Guernsey Finance. 

For marketing in specific countries and jurisdictions, the fund may need to be registered for distribution. We can refer you to our legal partner, Carey Olsen, to provide guidance and advice. 

Yes, as funds grow and mature a manager may need to transition a fund into a standalone vehicle, if required. The PCC structure provides the ability for underlying fund cells to spin out with the portfolio and existing investor base intact. Our Board and legal advisers can help with the process and this is what makes International Investment Funds an ideal fund incubator.

There is, however, no maximum size for individual fund cells or the PCC as a whole so it can make sense for managers and their fund investors to remain part of the broader IIF structure, continuing to benefit from shared central costs across all fund cells.

Just get in touch.

We can then look at the options. If our FaaS solution of a new fund cell within IIF is the right way forward, the next step will be for our administrator and compliance provider to carry out relevant due diligence. We can then together draft Supplemental Scheme Particulars, ensuring all the relevant investment information, risk parameters and disclosures are included. Registrations for jurisdictions the fund is to be marketed in should also be made. The Supplemental Scheme Particulars document will then be submitted to the GFSC and if successful, the fund cell can then be created.  

As IIF itself is already authorised and regulated and agreements are already in place with Vistra, our fund administration partner and registrar, as well as Butterfield Bank, for custody and banking services, the process of establishing a new fund cell is considerably quicker and cheaper than establishing a standalone fund.