APPROVED MANAGERS: New ‘Regulation Light’ Regime

Last year we told you that the BVI had introduced a new ‘regulation light’ regime for the recognition and approval of Investment Managers and Advisers. The essence of the new regime was to strike the right balance of flexibility, cost and effective regulation (http://www.folioadmin.com/news/bvi-approved-investment-managers-regulati...).

In practical terms, the outcome was an attractive alternative for Investment Managers and Advisers conducting business in the BVI, specifically acting to any number of private and professional funds recognized under the Securities and Investment Business Act, 2010 as well as any number of closed ended funds domiciled in the BVI which have the key characteristics of a private or professional fund subject to a cap of US$400 million for open-ended funds and US$1 billion for closed-ended funds.

The Investment Business (Approved Managers) (Amendment) Regulations, 2013 (“the Amendments”) have been introduced to extend the types of funds which an Approved Manager can manage, enabling it to now also manage any fund that has the equivalent characteristics to a private or professional fund domiciled in a recognised jurisdiction being a jurisdiction listed in the Securities and Investment Business (Recognised Jurisdictions) Notice, 2010. The recognised jurisdictions for these purposes are Argentina, Australia, Bahamas, Bermuda, Belgium, Brazil, Canada, Cayman Islands, Chile, China, Curacao, Denmark, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hong Kong, Ireland, Isle of Man, Italy, Japan, Jersey, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Panama, Portugal, Singapore, Spain, South Africa, Sweden, Switzerland, United Kingdom and the United States of America.

The New Regulations also provide that an Approved Manager may provide services to a fund that is not from a recognised jurisdiction when it invests all or a substantial part of its assets in a fund based in the BVI or a recognised jurisdiction.

The Amendments will make the Approved Manager even more attractive to a wider range of Investment Managers and Advisors and further enhance the BVI’s current competitive advantage in this field.

Should you require any further information or assistance in this regard, please feel free to contact one of our Directors at your convenience;

William Harris – william@fiduciarygrouplimited.com
Calum McKenzie – calum@fiduciarygrouplimited.com