Guernsey Welcomes the Launch of a New Security-focused Corporation
In a significant stride towards advancing its reputation as a global leader in sustainable finance, Guernsey has recently launched a Protected Cell Company (PCC) under the Guernsey Green Fund kitemark. This world-first innovation marks a milestone in the island's commitment to green finance, showcasing its ability to develop sophisticated green financial products that cater to investor demand, regulatory standards, and environmental goals simultaneously [1][2].
The newly launched PCC, named Fundline PCC Limited, houses two distinct investment cells: the Core Resilience Cell and the Regenerative Growth Cell. These cells focus specifically on climate, biodiversity, and impact investments, underscoring Guernsey's dedication to sustainable finance [1][2].
The Core Resilience Cell and the Regenerative Growth Cell have been authorized by the Guernsey Financial Services Commission as a Class B scheme. This designation reinforces Guernsey’s regulatory expertise and commitment to offering cutting-edge, cross-border fund solutions tailored for sustainable finance [1][2].
Key international finance players, including Carey Olsen (legal advisors), Suntera Global (fund administrators), and Butterfield Bank (Channel Islands) Limited (custody services), have supported the launch, demonstrating the strength and maturity of Guernsey’s financial ecosystem [1][2].
The PCC model offers flexibility and protection for investors, combining the benefits of the green fund framework with segmented investment strategies, which is pioneering globally [1][2]. Being approved as a Class B scheme under Guernsey Financial Services Commission approval enhances investor confidence and promotes international standards in sustainable investing [1][2].
Rupert Pleasant, Chief Executive of Guernsey Finance, stated that the Guernsey Green Fund provides certainty and pragmatism in the face of international sustainable finance regulation changes [1]. Jacob Cockcroft, Chief Commercial Officer at Butterfield, expressed pride in being part of the launch, noting Butterfield's extensive experience providing custody services in the Channel Islands [2].
This innovative development also extends to the insurance sector, as the transaction underscores Guernsey's position as a leading jurisdiction for innovative insurance solutions, marking the first time active members have been included in a Guernsey-based longevity swap, covering approximately £2 billion in liabilities for 14,500 pensioners [3].
The launch of Fundline PCC demonstrates the value of the Guernsey Green Fund kitemark and Guernsey's expertise in sustainable finance. The new report, commissioned by Guernsey Finance, highlights the vital role the financial services industry can play in achieving a just transition to a net zero future, identifying opportunities for the industry in supporting the transition to net zero [4].
In conclusion, the Protected Cell Company under the Guernsey Green Fund kitemark is a world-first innovation that advances Guernsey’s sustainable finance credentials, promotes investor confidence through regulatory excellence, supports groundbreaking green fund structures, and consolidates Guernsey’s standing as a preferred jurisdiction for sustainable and impact investing [1][2].
References: [1] Guernsey Finance. (2023). Press Release: Guernsey Launches World's First Green Fund Protected Cell Company. Retrieved from https://www.guernseyfinance.com/news/press-releases/2023/guernsey-launches-worlds-first-green-fund-protected-cell-company
[2] Butterfield. (2023). Butterfield Bank (Channel Islands) Limited Provides Custody Services for the Launch of Guernsey's First Green Fund Protected Cell Company. Retrieved from https://www.butterfieldgroup.com/news-and-events/press-releases/2023/butterfield-bank-channel-islands-limited-provides-custody-services-for-the-launch-of-guernsey%E2%80%99s-first-green-fund-protected-cell-company
[3] MMC UK Pension Fund. (2023). MMC UK Pension Fund Announces First Longevity Swap Transaction Covering Active Members. Retrieved from https://www.mmcpensionfund.co.uk/news/mmc-uk-pension-fund-announces-first-longevity-swap-transaction-covering-active-members
[4] Guernsey Finance. (2023). Report: The Financial Services Industry's Role in Achieving a Just Transition to a Net Zero Future. Retrieved from https://www.guernseyfinance.com/resource-library/reports/the-financial-services-industry%E2%80%99s-role-in-achieving-a-just-transition-to-a-net-zero-future
The newly launched Fundline PCC Limited, under the Guernsey Green Fund kitemark, is a pioneering global financial product that caters to climate, biodiversity, and impact investments. Regulation and investor confidence have been enhanced through the Authorization of the Core Resilience Cell and the Regenerative Growth Cell as a Class B scheme by the Guernsey Financial Services Commission.
