Here is some information about the BVI Mutual Fund which may be the right way to think of, actually I'm not aware of all the diefferent options there may be in the BVI so this is just one suggestion!
Mutual Fund Procedures description, from 2007 something must have changes since then!
BVI MUTUAL FUNDS
BVI FUND MANAGEMENT COMPANIES
REGISTRATION AND LICENSING PROCEDURES
Registration and licensing of mutual funds, fund management companies and fund fudministration companies in the
British Virgin Islands is regulated by the BVI Mutual Funds Act 1996 and a number of Regulations and Guides, as published by the BVI Financial Services Commission (FSC).
BVI is one of the most attractive offshore jurisdictions offering a completely tax-free environment for mutual funds, together with strict client confidentiality rules. There are no taxes payable in the BVI for profits made by an
investment fund or fund manager, however investors/shareholders should of course take advice as to the tax implications in their home jurisdictions.
Licensing and registration of mutual funds and fund managers in BVI is based on a case-to-case applications, reviewed by the BVI FSC. The fund licensing is not automatic and not guaranteed. The success of the application mostly depends on the credentials and resources of the principals of the fund and the management team that will be involved in the daily management of the fund.
Therefore, a substantial input of information and documents, is always required from the client.
Recognized jurisdictions. Investment funds, fund managers and administrators already registered and regulated in
„recognized jurisdictions” fall under a much simplified recognition procedure by the BVI FSC. A new BVI-registered mutual fund having all functionaries from „recognized jurisdictions” should normally be licensed in minimum time and with minimum complication.
Recognized jurisdictions are: Bermuda, Australia, Canada, Germany, Gibraltar, Hong Kong, Italy, Japan, Sweden, Bahamas, Cayman Islands, France, Luxembourg, Isle of Man, Belgium, Netherlands, Spain, Ireland, Malta, Singapore, Guernsey, Jersey, Switzerland, UK, USA.
We recommend all clients to get acquainted with the BVI Mutual Funds Act 1996 and other regulations of the mutual funds licensing in the BVI. Original texts of that legislation are available through the website of the BVI Financial Services Commission, at
British Virgin Islands Financial Services Commission.
We can provide a comprehensive, “turn-key” solution for establishment of a BVI public, private or professional mutual fund and for the licensing of a BVI fund manager or administrator. Our services can cover all that is necessary in order to register, license and launch a BVI mutual fund!
The time-scale for licensing a BVI mutual fund primarily depends on the complexity of the
application and as to how quickly and properly the application documents are provided. Generally, the time for the FSC to review an application ranges anywhere between a few days and a month.
INFORMATION TO BE PROVIDED BY APPLICANTS
The primary information to be provided by any applicants for a fund / fund manager / fund administrator license is laid out in the Application Forms, which are publicly available for download from the website of the BVI Financial Services Commission (or we can provide same at request).
In relation to public funds, the Commission will require sight and review of the prospectus of the fund. Presentation of prospectus is also recommended for private and professional funds. The prospectus must provide full and accurate disclosure of all such information as investors would reasonably expect for the purpose of making an informed investment decision; the Prospectus must also contain a full statement of investors’ rights as provided in the Mutual Funds Act (Section 16).
The FSC would normally wish to know the main characteristics of the proposed fund, in particular:
Mutual Fund Procedures description
a) Category of the Fund: open-ended or close-ended.
b) Limitations on advertising and marketing policy.
c) Limitations on number of investors.
d) Authorised share classifications.
e) Minimum subscription.
f) General rules for subscriptions and redemptions.
g) Limitations on minimum amount of investments (“professional investors”).
h) General description of who will be the prospective investors.
i) Restrictions on the geographical origin of investors, if any.
j) How shall investors be attracted, what services shall be offered?
k) Where will the actual place and location of business management be situated?
l) What managerial control procedures will be implemented?
m) Proposed structure of management fees.
n) Broad description of underlying investments.
o) Restrictions to invest in any particular instruments (if any).
p) Proposed application of leverage.
q) Investment objectives and benchmarks that the fund will follow.
r) A broad description of the proposed investment strategies – for instance, convertible
arbitrage, distressed securities, emerging markets, growth funds, macro funds, market
neutral, market timing, merger arbitrage, opportunistic, sector funds, short selling, etc.
For all fund license applications, a primary importance is given to the professional functionaries of the fund – the fund managers, fund administrators, custodians, accountants and legal advisors. All such functionaries have to be identified.
Personal information and documents for each principal / director /manager of the fund and management company must be provided, as follows:
a) Certified (notarized) good quality copy of valid passport.
b) Personal resume (Curriculum Vitae), with emphasis on the professional experience.
c) One bankers’ reference.
d) Two personal or professional references.
e) Police clearance certificate (absence of criminal record)
f) For each director, manager and controller of the fund: full business and professional background, including relevant experience, qualifications and any regulatory registrations, (for example SEC/SFA).
Should fund functionaries be from „recognized jurisdictions”, their approval process is very straightforward. Functionaries from any other jurisdictions or newly created firms will be required to undergo a full licensing procedure. In order to be licensed as a fund manager or fund administrator, a new applicant must prove that it has qualifications, resources and expertise available in order to engage in the fund management or administration business. To this effect, the following information has to be provided:
1. Resources statement. A description of the human resources and administrative facilities available to the applicant including details of the use of information technology. Also must include details of any data security and back-up arrangements.
2. Financial statements. If available, a copy of the applicant's most recent audited accounts must be provided. If the Applicant is part of a group, the latest audited group accounts should also be provided.
3. Business plan. This should include details of the following:
a) A brief resume of the applicant’s or the group’s history. A group structure chart showing the name and jurisdiction of all subsidiaries and where it is proposed the applicant will appear in the group. Indicate any regulatory authorities to which any group companies report. Include a brief description of the major sources of income for the group.
Mutual Fund Procedures description,
b) Business objectives of the applicant - include details of the types of services and
products to be provided, the reason for establishing in the BVI, marketing strategy and
marketing methods and markets to which services/products are to be offered.
c) Management and staff structure of the applicant: including a structure chart and a
description of the responsibilities of each director and manager and a description of
managerial control procedures and segregation of functions.
d) Projected financial position - a projected profit and loss account and balance sheet for the next two years, to be confirmed by the applicant's auditor.
It is customary that during the review of the licence applications, the BVI Financial Services Commission requests further clarifications or statements. Nevertheless, the application review process is usually swift and straightforward.
