Offshore IBC for mutual funds / Forex Trading now in Seychelles or what?

[Safa]

Hi,


Was just spidering around on google until I stoped up because of this Seychelles Mutual Funds | Forex Trading | Investment & Financial Companies It seems that the Seychelles are now offering what has been possible in the BVI, Panama and other offshore jurisdictions just with huge capital requirements as well as Cyprus has, but the Seychelles have some gentle terms and requirements.


What does it need to establish a Mutual Fund for Forex Trading in the Seychelles?


What is the required share capital if any?


what are the requirements towards the shareholders?


Can anyone register a offshore IBC in the Seychelles and obtain a Forex Trading license?


Can we have banking, which banks are available if any?


Is there any requirement to minimum staff, directors etc?


Would be nice to have the answers to the above

 

[Safa]

I mentioned the invalid1c site just because they are so far the only one who has this information available on the net....another point why I trust them

 

[James Spader]

Mutual Fund license for Forex Trading activities and other financial services, the reason for why we are almost the first out there to offer this and announce it is that we have a close relationship to world class lawyers in the Seychelles and many other places around the world, that said, this is a new act in the Seychelles which has been applied, so now they are very completive compared to the BVI, Panama, Singapore and even though Cyprus.


To obtain a Mutual Fund license which as mentioned can be used for Forex Trading, Financial Services as well as Offshore Investments in general it don't require much and it is cheap btw..!

What is the required share capital if any?

There are NO requirements, believe it or not! However, according to the Seychelles Act, “ a net worth, whether individually or jointly with his spouse, exceeding $1,000,000 or it’s equivalent in any other convertible currency"

what are the requirements towards the shareholders?

There are plenty of requirements, for instant letter of good standing, reference letters from lawyers and bank, utility bill and passport etc. for a detailed list please visit our website or contact us.

Can anyone register a offshore IBC in the Seychelles and obtain a Forex Trading license?

Yes that is possible as long as the share holder haven't been declared bankruptcy and has a clean criminal record.

Can we have banking, which banks are available if any?

Yes we can open a bank account with one of the World’s Top 10 banks, requirement is of course that you have the mutual fund license.

Is there any requirement to minimum staff, directors etc?

There are no requirements we will be able to arrange for all that through our professional lawyers in the Seychelles.


Now, please consider a few things before you are jumping right into this, the fee for all this is still expansive, between EUR 50.000 and 75.0000 you will not be able to handle credit card processing directly but will need services like Liberty Reserve, PerfectMoney and what they are all named, you will be able to receive Wire Transfers to your bank account an legally be able to make investments / Forex Trading etc. with this money.


Hope it answers most of your questions, else let me know.

 

[Safa]

Thank you for the details, this is awesome, tell me, the fee is this including everything including a white label forex trading platform, what I mean is, is it a Ready-To-Go solution we will not have to pay anything else right but start our business once everything is in place right?

 

[James Spader]

Yes it is a full managed solution, but you will need to find on your own a forex trading platform, white label or what you will need we do not offer this service but have a few companies we can introduce to!

 

[James Spader]

You can also find the ACT here: Link removed it may give many answers to potential questions..

 

[Moh1]

If I compare with Forex Trading companies in Cyprus Forex Trading Company | Forex Trading Company Registration | FX Company it looks like it makes only less sense to go for a Cyprus Forex trading company, or did I misunderstood everything here?

 

[drillbill]

Don't being in the Forex trading business nor Iam a market opener, I will say that the important sentiency in all this is the one with the required share capital which has kept many legally out of the business

There are NO requirements, believe it or not! However, according to the Seychelles Act, “ a net worth, whether individually or jointly with his spouse, exceeding $1,000,000 or it’s equivalent in any other convertible currency"

I also assume it will make it possible for many to start a Forex Trading Company now, lets hope it will went out for the best to all into this

 

[bizman]

IT will just wait and look I have a partner who is in the process to start one now.... this has opened the doors for him, his equity is in a foundation but he asked his laywer to manage the letter confirming the 1 million.... this has really opened the doors for him at least.

 

[drillbill]

Interesting point you mentioned there bizman, if it is possible to have your equity in a Foundation / Trust and you can get a lawyer to confirm that you have equity worth 1 million USD AND you therefore can obtain a Forex Trading license for Forex Trading and mutual funds, it is really interesting, let us all know the outcome, it can be the 2010 boom for Forex Trading companies....

 

[MiltonStone]

How does a mutual funds license is required for Forex Trading? Isn't it 2 different business activities! I guess a few of you will ask yourself this question, it is pretty easy to answer, a Forex Trading company will handle client funds, they will get payed by the client and they will most often also pay the client/customer, this is the key reason for why you will be required to obtain a Mutual Fund license, as soon as one will handle 3rd party funds for investments or other financial activities it requires a license, this, due to fraud and security reasons.

 

[clemens]

I woul also like to know a regular Offshore IBC is that considered to be a CSL company or can be used for Mutual Funds, this in regards to the Seychelles and Belize?

 

[bizman]

How does a mutual funds license is required for Forex Trading?

They are almost similar to each other, at least it requires the same financial license as I understand it.


To clarify what a Mutual Fund company is, I would recommend to continue reading


A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, or other securities. Legally known as an "open-end company," a mutual fund is one of three basic types of investment company. The two other basic types are closed-end funds and Unit Investment Trusts (UITs).


Here are some of the traditional and distinguishing characteristics of mutual funds:


Investors purchase mutual fund shares from the fund itself (or through a broker for the fund), but are not able to purchase the shares from other investors on a secondary market, such as the New York Stock Exchange or Nasdaq Stock Market. The price investors pay for mutual fund shares is the fund’s approximate per share net asset value (NAV) plus any shareholder fees that the fund imposes at purchase (such as sales loads).


Mutual fund shares are "redeemable." This means that when mutual fund investors want to sell their fund shares, they sell them back to the fund (or to a broker acting for the fund) at their approximate per share NAV, minus any fees the fund imposes at that time (such as deferred sales loads or redemption fees).


Mutual funds generally sell their shares on a continuous basis, although some funds will stop selling when, for example, they become too large.


The investment portfolios of mutual funds typically are managed by separate entities known as "investment advisers" that are registered with the SEC.


Mutual funds come in many varieties. For example, there are index funds, stock funds, bond funds, money market funds, and more. Each of these may have a different investment objective and strategy and a different investment portfolio. Different mutual funds may also be subject to different risks, volatility, and fees and expenses.


All funds charge management fees for operating the fund. Some also charge for their distribution and service costs, commonly referred to as "12b-1" fees. Some funds may also impose sales charges or loads when you purchase or sell fund shares. In this regard, a fund may offer different "classes" of shares in the same portfolio, with certain fees and expenses varying among classes.


To figure out how the costs of a mutual fund add up over time and to compare the costs of different mutual funds, you should use the SEC’s Mutual Fund Cost Calculator. Some funds may reduce their sales charges depending on the amount you invest in the fund. At certain thresholds, known as breakpoints, you may receive increasingly lower sales charges as your investment increases.


Keep in mind that just because a fund had excellent performance last year does not necessarily mean that it will duplicate that performance. For example, market conditions can change and this year’s winning fund might be next year’s loser. That is why the SEC requires funds to tell investors that a fund’s past performance does not necessarily predict future results. To understand the factors you should consider before investing in a mutual fund, read Mutual Fund Investing: Look at More Than a Mutual Fund's Past Performance. In addition, you should carefully read all of a fund’s available information, including its prospectus, or profile if it has one, and most recent shareholder report.


There are some investment companies, known as exchange-traded funds or ETFs, which are legally classified as open-end companies or UITs. ETFs differ from traditional open-end companies and UITs, because, pursuant to SEC exemptive orders, shares issued by ETFs trade on a secondary market and are only redeemable in very large blocks (blocks of 50,000 shares for example). ETFs are not considered to be, and are not permitted to call themselves, mutual funds.


Mutual funds are subject to SEC registration and regulation, and are subject to numerous requirements imposed for the protection of investors. Mutual funds are regulated primarily under the Investment Company Act of 1940 and the rules and registration forms adopted under that Act. Mutual funds are also subject to the Securities Act of 1933 and the Securities Exchange Act of 1934. You can find the definition of "open-end company" in Section 5 of the Investment Company Act of 1940.


For information about the basics of mutual funds, read from a list of publications by a variety of organizations.


source: Mutual Funds

 

[bizman]

I woul also like to know a regular Offshore IBC is that considered to be a CSL company or can be used for Mutual Funds, this in regards to the Seychelles and Belize?

As I understand, a offshore IBC will never qualify for Mutual Funds or Forex Trading unless it applies for a license, Belize is not an option at all for this, you will want to look at Seychelles, Mauritius Panama, Costa Rica etc.....


Have been surfing for 10 hours now to find some information, this is the place to share it.... hope it helps you as it helped me

 

[clemens]

thank you bizman, this helps, you made your homework for us, thanks


So just because I have a offshore IBC for instant in the Seychelles it don't comply with the Mutual Fund regulations, does that mean I will need a Seychelles CSL or Mauritius GBL1 company or to I need a Mutual Fund company, I'm very sorry but I don't get it!

 

[bizman]

Now read and learn, the differences are pretty clear and can be narrowed down to, that a Forex Trading company trade with "forex" currencies while with a Mutual Fund you are selling shares of the funds for investments. Now a Offshore IBC is just a simple company or business as you like, ofcourse you can sell the shares in the company but I believe no one will buy them unless you have a huge business, more important, you can't do investments on behalf of other investors with a regular IBC nor are you allowed to do any Forex Trading..


An open-end mutual fund has an unlimited number of shares. You can buy these shares through either the mutual fund company or your broker. The Securities and Exchange Commission (SEC) requires that each mutual fund company calculate the NAV (net asset value) of each fund every day at the close of business.


A closed-end mutual fund is a hybrid: part mutual fund and part stock. A closed-end mutual fund is a publicly traded investment company with a limited number of shares. According to the Investment Company Institute (ICI), in August 2004, the combined assets of the nation’s closedend funds were over $232 billion. As of June 30, 2004, there were 604 closed-end funds.


The total of number of June 2004 closed-end funds can generally be divided into two categories. Bond closed-end funds totaled 458, and equity closed-end funds totaled 146. Specifically, closed fund types include closed-end stock funds (investments in common and preferred stocks), closed-end bond funds (investments in a range of bonds), closed-end convertible bond funds (with portfolios of bonds that can be converted to common stocks), closed-end single country funds (specialize in stocks from one country or geographical region), and so on.


One of the things to keep in mind when you purchase a closed-end fund is that the investment company doesn’t stand ready to redeem its own shares from shareholders, and it rarely issues new shares beyond its initial offering. That’s why it’s a closed fund. You can buy or sell these shares only through a broker on the major stock exchanges. The value of these shares isn’t calculated by using the NAV methodology. Instead, shares are valued by using a method similar to bonds and are traded at either a discount or a premium. Market prices of publicly traded closed-end mutual fund shares are published daily. The Closed-End Fund Center, located at CEFA - Closed-End Fund Association, is sponsored by the national trade association of the closed-end fund industry. This Web site offers detailed investor education, a portfolio tracker, and data about specific closed-end funds.

 

[SysOp]

Even if bizman has outlined things very good, thank you, I find it useful if you are looking into this thread /forum/f62/igtfx-technical-analysis-usd-pln-aud-nzd-9894/ what the thread starters are posting there are form the Forex market...

 

[drillbill]

Anyone made a conclusion out of this thread? I did, you will want to register for a Mutual Fund Offshore IBC in the Seychelles to accessing the Forex market, Cyprus sure, for branding and the better looking of your business it an option but you will need 1 million euro to get started, with the Seychelles Mutual Fund you can get started as less as 60k euro.

 

[James Spader]

If you are looking into Forex Trading business and you will want to make everything legit a mutual fund in the Seychelles or a Forex Trading license in Cyprus is the way to go thats for sure.

 

[MiltonStone]

Anyone made a conclusion out of this thread? I did, you will want to register for a Mutual Fund Offshore IBC in the Seychelles to accessing the Forex market, Cyprus sure, for branding and the better looking of your business it an option but you will need 1 million euro to get started, with the Seychelles Mutual Fund you can get started as less as 60k euro.

The conclusion may be that it depends on which business you are into, if it is Forex Trading on a large scal you will need to register for a Mutual Fund in the Seychelles or as mentioned Cyprus, if it is private investments or a small group of investors it may be the Seychelles CSL company, thats what I know now