Mutual Funds
The Islands' mutual funds regime provides for four types of fund:
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Registered mutual funds constituted under TCI law which are authorized to issue equity interests only to investors who meet prescribed qualifications or in which equity interests are listed on a stock exchange recognized by the TCI authorities for this purpose.
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Recognized mutual funds constituted outside the TCI whose equity interest are listed on an approved exchange.
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Licensed mutual funds, a category for funds which fall outside the registered and recognized headings, but are otherwise approved.
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Exempt mutual funds in which the equity interests are held by not more than fifteen investors the majority of whom are capable of appointing or removing the operator of the fund, or funds that are authorized to issue equity interests only to professional investors (as defined).
A TCI fund can be structured as a company, a partnership (limited or otherwise) or as a unit trust.
Our mutual funds legislation is designed to be non-bureaucratic with emphasis on regulation of the fund administrators rather than on regulation of the funds themselves. The legislation has only recently been brought into force and the TCI government is keen to encourage growth of the mutual fund industry here.
We have acted for major clients in the establishment of investment funds in the Islands, both for private placements and public issues.
Contacts:
Ariel Misick
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