Obtaining the status of Approval Investment Manager in the BVI. Service offer

IM may, instead of obtaining a license, receive the status of “approved manager” under the following conditions:

1. The total amount of investment under IM management should not exceed USD 400 000 000 (the threshold increases to USD 1 000 000 000 if IM is valid in as an investment manager in relation to a closed fund). In the event that the assets under the management of the approved manager exceed the indicated amounts, it is given 3 months to either reduce the assets or apply for a license;
2. IM can be assigned only to private and professional funds (both closed-and open-ended);
3. IM is entitled to engage only in the types of activity specified by law;
4. IM reporting is not subject to mandatory audit, but must still be prepared, signed by the directors and submitted annually to FSC;
5. IM must have at least 2 directors in its structure (1 of which must be an individual) and additionally an Authorized representative in the BVI.

1. IM has the right to start its activities immediately after submitting an application to the FSC for obtaining the status of an approved manager and conduct such activities for 30 days (the period may be extended up to 60 days upon application of the IM in no objection from the FSC). On the other hand, FSC is not bound by these deadlines when reviewing the application - that is, if approval was not received within, say, 60 days, then IM is obliged to cease conducting activities immediately after the end of this period;
2. It can be assumed that the timeline for consideration of an application should be less than the timeline for obtaining licenses in accordance with FSC (according to the new Regulation, this period should not exceed 2 months, but there is no practice so far and it’s hard to say how this condition will be fulfilled. question how this procedure will be really simplified);
3. The government fee for reviewing the application and obtaining a certificate of approval for the first year is USD 2 500. Annual fee for the renewal of the status of approved manager is USD 1 500. Price for the entire procedure can be found below.

To fill out an application for the status of "approved manager", it will be necessary to provide the following information:

• date of commencement of investment activities (when it is planned to start such activities)
• information for all directors and senior officers of IM:
  • name
  • address
  • position
  • CV
• number of persons, whose funds IM plans to manage, and
• information for each of these persons:
  • name
  • whether the relationship is new or already existing
  • address
  • place of incorporation
  • value of assets already under IM management, or which is planned to be transferred under management IM
  • in which capacity will IM act in relation to these persons (adviser, manager or adviser and manager)
• information on all individuals who will directly carry out investment functions (person to carry out the entity’s day-to-day investment functions)
• indicating whether IM will delegate any of its investment functions, and, if so, to whom
• the declaration (statement) of each director, senior officer and IM shareholder that they have sufficient qualifications and personal qualities necessary for managing IM (Fit and Proper declaration) In addition to FSC is also mandatory to request from IM any other information that is relevant for taking a decision whether to accept or reject the application.

Application sould be accompanied with:

1.copy of corporate documents of IM:

• Certificate of Incorporation,
• Memorandum of Association,
• Articles,

2. CV for each director and senior officer;

3. Copy of investment advisory agreement or investment manager agreement between IM and each of its investors;

4. CV for each individual who will directly implement the investment functions of IM;

5. Copies of agreements regarding the delegation of individual IM functions (if any);

6. CV for each individual who will directly exercise the delegated investment functions of IM (if any);

7. Written confirmation from the law firm filing documents with the FSC on behalf of IM that it has agreed to act in its interests.

BVI legislation provides that directors and other senior officers must meet a number of requirements.

Including the requirements for the education they have (the relevant position they occupy in the company, and confirmed by the relevant educational documents) and experience in this area ( not less than 5 years).

If a senior officer lacks a relevant education, he can still be assigned to his position, but only if he has experience in the same position for at least 7 years.

An approved investment manager is entitled to perform any of the following functions in an investment activity:

1. act as an investment advisor or investment manager in relation to a private or professional fund;
2. to act as an investment advisor or investment manager in relation to a closed fund* established in accordance with the laws of the Virgin Islands in the form of a company, partnership or trust and having the characteristics of a private or professional foundation;
3. act as an investment advisor or investment manager in relation to a person affiliated with the stock structure specified in clauses (a) or (b);
4. act as an investment adviser or investment manager in relation to any other person approved by the Commission on the basis of an individual review of the application submitted by it; and
5. act as an investment manager or investment adviser to a person who
   1. is established outside the Virgin Islands in the form of a company, a company or a trust;
   2. has characteristics similar to those of a private, professional, or private fund; and
   3. invests all or a significant part of its assets in one or several fund structures specified in paragraphs. (1) or (2).

for the acquisition of the status of the Managing Fund (Investment Managers, IM), approved by Financial Services Commission for management of investment in amound not exceeding USD 400 000 000**

*The fund is closed in case when investors do not have the right to present shares for redemption.

**When managing closed-fund investments (closed-ended funds), you can manage investments of up to USD 100 000 000.

***The proposed costs are estimated but not final. Final cost depends on each individual case structure and required tasks. It is possible to make a deposit payment to us and we will develop individual structure / relevant tasks / solutions and processes for individual project.