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.
A public fund is one that offers its shares to the public. The Act requires public mutual fund investment vehicles to be licensed. Generally, public mutual funds are subject to the highest level of regulation under the Act. A private fund is one with less than 50 investors that offers its shares for sale on a private basis. A professional fund is one that may only offer and sell its shares to professional investors. Under the Act private and professional funds are subject to lesser requirements of recognition. Also regulated within the Act are fund managers and administrators.
Together with our colleagues in O’Neal Webster, we can assist you with the formation of your mutual fund vehicle, fund manager and fund administrator and the relevant license or recognition applications. Our services include:
- Formation of a company (or other legal entity) to act as the vehicle for the fund. The BVI Business Companies Act allows the Segregated Portfolio Company, a vehicle which is used extensively with Mutual Funds.
- 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.
- Legal assistance with the creation of the Offering Document for the new mutual fund.
- Assisting with compliance and license renewals.
- Fund Administration services (including investor relations and fund valuations), provided by a highly respected fund administrator based in the UK.