Holding Restrictions - Investment Funds - Guernsey
There is no statutory nominee concept under the laws of Guernsey for investment funds. In the absence of any provisions of the constitutional documents of the Investment Fund, CBL as the nominee will be recognised as the legal and beneficial owner of the relevant interests in the investment fund. Beneficial interest of CBL’s customers may be recognised in practice depending on provisions of the constitutional documents governing the investment fund or AML requirements.
Customers are advised to consult with appropriate counsel before holding fund units/shares through CBL in Guernsey. By holding such securities, CBL customers are deemed to be aware of any law, regulation, rules and policies applicable thereto.
Restrictions on customers
No general restrictions on customer residency for holdings held through CBL.
However, certain funds may impose specific restrictions on investor domicile. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
Sanctions legislation may also impose restrictions or a ban on dealing with entities of which the ultimate beneficiaries would have ties to certain (sanctioned) countries.
Restrictions on settlement
There is no general restriction on settlement of Guernsey investment funds through CBL. However, certain funds may impose specific settlement/transfer restrictions. Customers must refer to and abide by the restrictions (if any) contained in the fund prospectus before entering into transactions.
The information contained in the Holding Restrictions is based on the legal opinion obtained by CBL that was issued on 3 December 2020. CBL believes the information to be correct as of that date but disclaims any responsibility as to the accuracy and completeness of the information after that date. In the case of discrepancy between the information provided by CBL and the local laws and regulations, the latter shall prevail. The Holding Restrictions do not constitute legal advice and customers should seek advice from independent professional counsel.
Customers are responsible for ensuring compliance with the disclosure requirements and agree to indemnify and hold harmless CBL, for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.