Under SIBA, the term “mutual fund” or “fund” is defined as a company incorporated, a partnership formed, a unit trust organized or other similar body formed or organized under the laws of the BVI or of any other country or jurisdiction which:
SIBA only regulates:
1. Private fund – this is a fund whose constitutional documents specify that it will have no more than 50 investors or that the making of an invitation to subscribe for or purchase shares is made on a private basis.
2. Professional fund – this is a fund in which shares are only made available to professional investors and the initial investment by all of the investors (excluding exempted investors) is not less than USD 100,000 (or equivalent). Exempted investors include the manager, administrator, promoter or underwriter of the fund; or any employee of the manager of the fund.
3. Public fund – this is a fund that is neither a private fund nor a professional fund. All private and professional funds must be recognized under SIBA, whilst all public funds must be registered under the SIBA.
Private or professional funds are generally easier to register and obtain licenses for in the BVI, whilst public funds, given their offering of investments to the non-institutional, general public, are generally more scrutinized and have stiffer regulatory and legal requirements than private or professional funds.
Although it is anticipated that the number of investors at some point may exceed 50, it may be an option to first become licensed as a private fund and then subsequently change fund categorization as required.
Also in one of the Policy Guidelines, it is stated, in particular, that "the making of invitations to as many as 300 persons might be considered an offering on a "private basis" if it can be demonstrated that the person made the invitations to specified persons and had no deliberate intention of making invitations to other persons.
The making of invitations to a significantly greater number of persons than 300 would cast doubt upon compliance with the spirit of "private basis" which is embodied in the Act, on the grounds that a large number of persons is not consistent with what is commonly understood to be "private".
The Securities and Investment Business (Incubator and Approved Funds) Regulations 2015 that came into force on 1 June 2015 has introduced two lightly regulated funds products - Incubator and Approved Funds.
4. Incubator Fund is a fund whose constitutional documents provide for a maximum of 20 investors, with initial investment of at least USD 20 000 by each investor, and whose NAV cannot exceed USD 20 000 000.
Such funds are not required to appoint administrator, custodian, manager or auditor, which helps keep fund setup and administration costs to a minimum and makes Incubator Funds a good instrument for start-ups.
5. Approved Fund is a fund whose constitutional documents provide for a maximum of 20 investors, and whose NAV cannot exceed USD 100 000 000. An Approved Fund is not required to appoint custodian, auditor or manager, but must have an administrator.
*The fees are valid as of March 2023 and may be changed without prior notice.
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Service
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Fee
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Formation (including drafting of non-standard articles reflecting the specific activity of the fund)
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from 5 000 USD (if the authorized number of shares is less than 50 000), or from 5 450 USD (if the authorized number of shares is more than 50 000)
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Fee for review of an Application + Initial Recognition fee
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1 700 USD
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Authorized representative in the BVI
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2 800 USD (plus fees for the time spent on the negotiation with FSC during the next year if such necessity arises)
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Legal fees for the preparation of all legal documents required for obtaining of the fund license
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from 27 500 USD
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Annual renewal
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from 2 300 USD (if the authorized number of shares is less than 50 000), or from 3 500 USD (if the authorized number of shares is more than 50 000)
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Annual Recognition fee
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1 000 USD
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Service
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Fee
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Formation (including drafting of non-standard articles reflecting the specific activity of the fund)
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from 5 000 USD (if the authorized number of shares is less than 50 000), or from 5 450 USD (if the authorized number of shares is more than 50 000)
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Fee for review of an Application + Initial license fee
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2 500 USD
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Authorized representative in the BVI
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2 800 USD (plus fees for the time spent on the negotiation with FSC during the next year if such necessity arises)
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Legal fees for the preparation of all legal documents required for obtaining of the fund license
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from 17 000 USD
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Service
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Fee
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Formation (including drafting of non-standard articles reflecting the specific activity of the IM)
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from 5 000 USD (if the authorized number of shares is less than 50 000), or from 5 450 USD (if the authorized number of shares is more than 50 000)
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Initial license fee
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2 500 USD
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Authorized representative in the BVI
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2 800 USD (plus fees for the time spent on the negotiation with FSC during the next year if such necessity arises)
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Legal fees for the preparation of all legal documents required for obtaining of investment management license
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from 25 500 USD
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Annual renewal
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from 2 300 USD (if the authorized number of shares is less than 50 000), or from 3 500 USD (if the authorized number of shares is more than 50 000)
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Service
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Fee
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Annual fees
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USD 0-30m – from 0.15% of net asset value; USD 30-50m – from 0.12 % of net asset value; over USD 50m – from 0.01 % of net asset value
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Annual minimum fee per portfolio
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from 15 000 USD
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Service
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Fee
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Annual fees
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From 0.20% of the value of the Fund
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Compliance fee
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Payable in the cases of:
- incorporation of a company, - renewal of a company, - liquidation of a company, - transfer out of a company, - issue of a power of attorney to a new attorney, - change of director / shareholder / beneficial owner, except the change to a nominee director / shareholder), - signing of documents. |
350 (standard rate, includes the check of 1 individual),
+ 150 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL, + 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL, 450 (rate for high-risk companies, includes the check of 1 individual), 100 (signing of documents). |