Mutual funds managers and administrators in the British Virgin Islands must engage in these specific activities only if they hold a license. There are a number of conditions with which the applicant needs to comply with in order to become a licensee and these can be summarized by having the relevant knowledge and expertise for providing these types of services.
Our team of BVI company formation agents can help investors and entrepreneurs comply with all of the ongoing requirements for fund management and general company incorporation. The British Virgin Islands are a popular destination for establishing a mutual fund as well as for offshore company creation.
What are the licensing requirements for fund managers in BVI?
The Financial Services Commission in BVI is the one that receives the license application for mutual fund managers and administrators. One of the foremost conditions for the issuance of the license is that the applicant is “fit and proper”. This requirement can be understood in the context in which the future fund manager or administrator is capable and is able to take on the responsibility and the trust required for the management of funds. Individuals that are considered dishonest or those who lack the experience needed for the task will not be licensed.
The following documents are required when making a fund manager license application:
- • The name: one or more names for the fund or the fund management company are proposed as a first step; the size of the fund is also indicated at this point.
- • The personal information: these are the identification details, the resume and professional references belonging to the applicant.
- • The information about the directors: relevant details about the fund directors, managers or controllers (experience, qualifications, etc.)
- • Information about the individuals related to the fund: the custodians, the auditors, legal advisors, other administrators, brokers, etc.
- • Information about the fund: a description of the main characteristics of the mutual fund, such as its type and category, limitations, general rules, investment objectives, etc.
The document that includes the main characteristics of the fund will also refer to the proposed investment strategies as well as information about any existing restrictions on investment instruments and the underlying investments (if any).
In addition to the information about the fund and the related individuals, the application will also include the business plan, a statement concerning resources as well as financial statements (including those of the group when the applicant is part thereof).
One of our British Virgin Islands company formation specialists can give you more details on the process for applying for a fund manager license and can assist you during the licensing process. Please remember that the documents listed herein are not an exhaustive list and the Financial Services Commission will treat each application with diligence. Therefore, additional documents may be required for fund manager licensing in BVI.
What are some of the advantages of BVI funds?
The British Virgin Islands are a popular jurisdiction for the registration of offshore funds. The location offers two important advantages: first, there are the tax-related benefits due to the fact that there is no tax on income, profits, dividends and capital gains for the fund; second, the British Virgin Islands are a jurisdiction that offers accessibility to other markets and the local regime allows for a great degree of fund flexibility in terms of structuring. The same zero-tax policy applies in general, to any business, and furthermore, the BVI company set up process is a simplified and fast one. There are no requirements to provide a minimum share capital when opening a BVI company and this extends to the creation of funds, as they can take several organizational forms (most commonly a business company).
Some facts about the BVI fund environment include the following:
- • there are more than 3,000 registered mutual funds.
- • more than 100 billion USD are managed within these funds.
- • BVI is a popular jurisdiction for mutual fund management mainly because of the tax benefits.
The fund administrator or manager in BVI can be an individual or a corporation. Understanding the regulations for licensing, as well as the requirements for ongoing compliance is relevant when engaging in fund administrative services.
Contact our team of BVI company incorporation agents who can provide you with detailed information about local laws, rules and regulations and the principles for mutual funds and fund administrators.