BVI Mutual Funds Service

Mutual Funds Regulation

In the British Virgin Islands, open ended mutual funds are regulated by the Mutual Securities and Investment Business Act  2010 as amended (“SIBA”). SIBA classes open-ended mutual funds in three classes: private funds, professional funds, and public funds. In the British Virgin Islands, the Financial Services Commission through its investment business arm regulates BVI mutual funds.

BVI Funds

BVI has a number of fund options to suit a variety of different needs, as follows:

Incubator Funds

The BVI Incubator fund is geared for start-ups created with a view to building a track record to attract future subscriptions. Incubator funds have the following parameters:

  • Maximum 20 investors
  • Minimum initial investment of $20,000
  • Net assets of up to $20million

Incubator funds do not require an offering memorandum, licensed investment manager, administrator, custodian or auditor. Investors are provided with a written description of the investment strategy and a written outline of the risks including their risk of investing in an Incubator Fund. The Incubator Fund can be approved for up to two years at which time it can be converted to an Approved Fund, Professional Fund or Private Fund.

BVI Approved Funds

BVI Approved Funds are a low cost fund vehicle for a small number of investors with the following parameters:

  • Maximum 20 investors
  • No minimum investment
  • Net assets of up to $100million

BVI Approved Funds have no term limits.

BVI Professional Funds

Professional funds are funds that are held only by professional investors. Unless exempted, each investor’s initial investment must be at least $100,000.

BVI Private Funds

Private funds are funds established to have no more than fifty investors or limit subscriptions only to persons invited on a “private basis”.

Authorised Representative

Regulated entities licensed under SIBA, which includes mutual funds and approved managers must deal with the BVI Financial Services Commission through an Authorised Representative unless they have a significant management presence in the BVI.

The following are the functions of an Authorised Representative:

  • Act as intermediary between the regulated entity and the regulator
  • Accept service of notices and other documents on behalf of the regulated entity
  • Keep copies of records and copies of such records, as required under the regulations, at the office of the Authorised Representative in relation to the regulated entity

How Coverdale can help you

We can assist you with the formation of your mutual fund vehicle, fund manager and fund administrator. Whether you establish the fund as a corporation, partnership or unit trust, we can serve you.

Our services include:

  • Securing legal assistance for the creation of the Offering Document for the new mutual fund.
  • Formation of a company, partnership or trust to act as the vehicle for the fund.
  • Provision of Registered Office and Registered Agent facilities.
  • Submission of applications for licenses and liaison with the Director of Investment Business at the Financial Services Commission.
  • Assisting with compliance and license renewals.
  • Providing Authorised Representative Services through our licensed subsidiary Coverdale Authorised Representative Limited

Interested in this service?

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