MultI-Jurisdictional Guide 2012 - Investment Funds: British Virgin Islands

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Originally published in the Investment Funds multi-jurisdictional guide 2012, Practical Law Company.

RETAIL FUNDS

1. What is the structure of the retail funds market? What have been the main trends over the last year?

Open-ended retail funds

About 215 funds are registered as public funds under the Securities and Investment Business Act 2010 (SIBA). A public fund is a retail product and can market its shares (in the case of a company) or units (in the case of a unit trust) to any member of the public inside or outside the British Virgin Islands (BVI). Only open-ended funds must be registered under the SIBA.

The public funds market is relatively mature and there have only been a few registrations in the last 12 months. There has been no significant change in market practice.

Closed-ended retail funds

Closed-ended funds are not directly regulated. While there is a growing market for using the BVI as a domicile for closed-ended funds, few of these funds would be accurately described as retail funds. Therefore, Questions 2 to 14 focus on open-ended retail funds registered as public funds under the SIBA.

Regulatory framework and bodies

2. What are the key statutes, regulations and rules that govern retail funds? Which regulatory bodies regulate retail funds?

Open-ended retail funds

Regulatory framework. The primary legislation is the SIBA. On the SIBA coming into force, the Mutual Funds Act 1996 was repealed and all funds previously recognised or registered under the Mutual Funds Act 1996 were automatically deemed to be recognised or registered under the SIBA. The Mutual Funds Regulation 2010 (MF Regs) and the Public Funds Code 2010 (PF Code) is secondary legislation issued under the SIBA.

Please see full chapter below for more information.

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Published In: Administrative Agency Updates, Finance & Banking Updates, International Trade Updates, Securities Updates, Tax Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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