02 October 2014
Carey Olsen advises on innovative bullion coin fund
Carey Olsen has advised on the legal and regulatory structure of the first ever gold bullion coin investment fund, The GB Gold Fund LP. The Fund was recently authorised by the Guernsey Financial Services Commission (“GFSC”) as an open-ended Class Q Scheme and Qualifying Investor Fund suitable for investment by qualifying professional investors.
Never previously offered through a collective investment scheme, the Fund allows investors a tax efficient structure to buy, hold and sell coins because as they are still considered legal tender, they are exempt from both value-added tax ("VAT") and UK capital gains taxation (“CGT”). Investors can elect to receive redemptions on their investment in either cash or in specie. Gold's tangible properties add to its appeal as an asset class and according to the World Gold Council, there is a substantial latent demand for gold investment within the UK.
The GB Gold Fund LP will buy and hold one troy ounce 999.9 fine gold (24 carat) Britannia coins, which come with a UK government assurance of weight and quality. They will be held segregated in secure vault facilities and will not be subject to any form of leverage, lending, shorting or derivatives.
Guernsey partner, Tom Carey, worked with the creator of the Fund, Robin Newbould, who is the Managing Director of local precious metals firm BULLIONROCK, which will act as both a broker and sub-custodian.
Tom Carey said: “This Fund offers a unique investment opportunity in Gold Brittania coins through a tax-efficient structure that should appeal to UK investors and we expect to see similar funds following its lead in this asset class.”