Guernsey investment funds - Summer 2026 update

Innovation Sandbox update

On 30 April 2026, the Guernsey Financial Services Commission ("GFSC") published updated materials on its Innovation Sandbox and Concierge ("Sandbox") following feedback from a recent consultation.

The Sandbox, which was launched in 2025, provides a framework for applying existing regulatory laws and supervisory tools in a way that reflects the nature, scale and risk of the proposed activity. It supports testing and development, with a clear pathway towards either operation outside the Sandbox or an orderly exit if the proposal does not proceed. The Sandbox is designed to help participants engage with the regulatory landscape in a constructive and informed way and offers flexibility in how regulatory requirements are evidenced at application and during the testing or incubation phase, in a way that is proportionate to the risks involved. While digital finance is expected to be a common use case, the Sandbox may be used for novel and innovative propositions where there is uncertainty around the standard regulatory framework.

Updated materials include new frequently asked questions (FAQs) and an updated webpage, which sets out the various stages, from initial conversation to solution, and details what participants can expect at each stage.

The Fund Foundry

A Guernsey-based not-for-profit organisation, Foundry Partners (LBG), has launched the Fund Foundry, a new programme aimed at helping first-time and emerging fund managers establish and grow investment funds from Guernsey.

Applications for the programme opened in July 2026, with five managers to be selected each year from an international shortlist of 20 following a selection event to be held in Guernsey in September. Each successful applicant will receive a £25,000 service voucher to help cover legal, fund administration and audit costs during their first year, alongside mentoring, technical support and access to prospective investors, including access to the GFSC's Sandbox offer and the streamlined one business day registration Private Investment Fund regime.

Carey Olsen is supporting the launch of the Fund Foundry, as was announced here.

Defence technology funds – roundtable event

In our Guernsey investment funds - Spring 2026 update we highlighted some useful input provided by the GFSC in relation to establishing defence funds (i.e. funds aimed at supporting military research, development, and procurement). Shortly thereafter, Guernsey hosted a high-level roundtable event bringing together defence, regulatory and industry leaders to explore the role of private capital in supporting resilience, security, and long-term stability.

Lord (Stuart) Peach, former UK Chief of the Defence Staff and former Chair of the North Atlantic Treaty Organisation ("NATO") Military Committee and current chair of the Defence, Security and Resilience Bank Development Group, attended the event, together with representatives from across the industry, alongside the GFSC, Guernsey International Business Association and Guernsey Finance. Participants discussed opportunities for capital raising, as well as the role that Guernsey can play in support, including by integrating defence, infrastructure, and sustainability into its core funds offering.

Deputy Andrew Niles, Vice-President of the Committee for Economic Development, who chaired the roundtable, commented that "There is a growing recognition that public funding alone will not meet the scale of the challenge [to support long-term security] … and that private capital will increasingly form part of the solution."

William Mason, Director General of the GFSC, noted that the GFSC had authorised three defence funds over the past year whose objective is to rebuild NATO capabilities through their investment in defence technology.

GFSC 2025 Annual Report

The GFSC has published its 2025 Annual Report and Financial Statements, highlighting regulatory delivery, policy reform and technology investment, including the GFSC's Applications and Authorisations Portal, Digital Finance Initiative, private investment funds (PIF) regime enhancements, updates to the Prospectus Rules, sustainability reporting feedback and the new equity release framework. The report notes continued sector stability, demand for investment funds, investment and insurance entities, and opportunities and risks from artificial intelligence cyber security and geo-political events.

Investment statistics for Q1 2026

The total net asset value of Guernsey funds at the end of the quarter was £272.6 billion, a decrease over the quarter of £0.2 billion (-0.1%).  Over the past year, total net asset values have decreased by £6.0 billion (-2.2%). 

Within these totals for Guernsey funds, Guernsey Sustainable Funds held a total net asset value of £4.4 billion at the end of the quarter.