Case Study 2

Joint Venture: Sydney Charles Insurance Advisers, Infrastructure Project

Overview

Sydney Charles' corporate structure was more focussed on insurance business and was not necessarily going to fit easily into the criteria demanded by the Investment Division of the Guernsey Financial Services Commission ("GFSC");

They did not possess the all important investment business license from the GFSC, which would allow them to conduct investment business activities and manage a collective investment scheme;

They had no existing fund documentation with which to draw up a model of how the fund would work and create an offering memorandum.

The Active Solution

Active formed a joint venture company with Sydney Charles, specific to investment business and which tied in all of the expertise and skills of Active Group with the qualities and specific requirements of Sydney Charles. The structure was designed to fit the criteria to satisfy the GFSC, with Active Group directors and shareholders providing palpable experience, oversight and input on the control of the new fund management company;

Active created a tailored application to the GFSC for the new fund management company's investment license and followed this through from inception, with business plans, financial models, regulatory documentation and leading on the regulatory dialogue with the GFSC during the course of the entire application;

Active conceived the structural requirements for the type of fund to fit the business model required and drafted a set of scheme particulars to meet administrative and regulatory requirements.  Active 'project managed' the liaison between all the involved parties and organised legal documentation and administrative reviews of the paperwork, finally taking the fund documentation through the GFSC application process to a successful conclusion.

All the while Active still maintained its original compliance support activities for its client while this project was undertaken - thus demonstrating the broad scope of services available from basic support, through to project management, joint venture companies, regulatory applications and drafting of fund documentation.

The end result is an already established Guernsey business having set up a new licensed fund management company dedicated to managing a bespoke collective investment vehicle for a complex infrastructure project.  Sydney Charles were able to assist their client with a solution which accommodated all of the problems and hurdles, at the same time creating for themselves an expansion to their own business model and activities with our support.