Exploring the Funds Hub

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Exploring the Funds Hub is a captivating podcast series containing audio of written content that dives deep into the intriguing world of offshore funds, including the BVI and Cayman. Each episode sails through complex waters, bringing you up-to-date analysis and expert commentary from the leading minds in this specialised field. Our episodes demystify legal jargon and break down complex terminology to make them accessible to all. Harneys, an international law firm with entrepreneurial thinking, brings each episode to you.

  1. 1 day ago

    Continuing obligations of a Cayman Islands Registered Mutual Fund Administrative fines Compliance calendar Part A – Registered mutual fund obligations Annual fee Action Required Timing and Penalties Any change that materially affects any information i

    This guide sets out the continuing obligations under Cayman Islands law of an open-ended fund registered with the Cayman Islands Monetary Authority (CIMA) under section 4(3) or 4(4)(a) of the Mutual Funds Act (Mutual Funds Act). Part A of this guide sets out the ongoing requirements under the Mutual Funds Act as well the various FATCA and CRS requirements, director registration obligations and anti-money laundering compliance. An open-ended investment fund, registered with CIMA under the Mutual Funds Act, can be structured as an exempted company, limited partnership, limited liability company or unit trust, each of which also have ongoing obligations. Part B applies to a fund that is an exempted company incorporated with limited liability and an authorised share capital. If the fund is an exempted limited partnership see also Part C. If it is a limited liability company (LLC) incorporated under the Limited Liability Companies Act (LLC Act) see also Part D and if it is an exempted trust, see also Part E. Please see our guide to mutual funds in the Cayman Islands for more details of the open-ended fund structures available in the Cayman Islands. CIMA has the power under the Monetary Authority Act (MA Act) to impose significant administrative fines of up to CI$1 million (US$1.2 million) for each breach of certain provisions of the Anti-Money Laundering Regulations (AML Regulations) and other Cayman regulatory laws and regulations, including the Mutual Funds Act, Securities Investment Business Act and Directors Registration and Licensing Act (DRL Act). The level of an administrative fine will depend on various factors including whether the breach is committed by an individual or a body corporate and if the breach is classified as minor, serious or very serious. An overview of the annual compliance dates is set out in our compliance calendar, which can be found here on our website. Note in particular that penalties frequently apply for late filings and so the registered office should be informed promptly of any notifiable changes to allow the appropriate filing/s to be made. Must be paid to CIMA. Fund/Feeder fund CI$4,125/US$5,031 Master fund CCI$3,075/US$3,750 SPC If a fund is structured as a segregated portfolio company an additional annual fee of CI$300/US$366 per segregated portfolio is also payable to CIMA. By 15 January of each calendar year. Penalties under Mutual Funds Act 1/12 of the annual fee due for each month the payment remains outstanding. For a fund which has ceased carrying on business and which has applied to de-register from CIMA half annual fees are payable. For all funds registered under section 4(3), all master funds and for those funds registered under section 4(4)(a) that filed an offering document with CIMA, a copy of amended offering document or supplement to the offering document (or prescribed details for a master fund which does not have an offering document) must be filed with CIMA along with a signed amended application form (if applicable). Offering document/supplement filing fee CI$125/US$153 Application form filing fee CI$300/US$366 Within 21 days of becoming aware of the change. CIMA expects the governing body and operators of registered funds to comply with the corporate governance principles set out in its Rule and Statement of Guidance on Corporate Governance for Mutual Funds and Private Funds issued in 2023 (SoG). The governing body of a regulated fund is the board of directors for a corporate fund, the general partner(s) of an exempted limited partnership, the manager(s) of an LLC and the trustee(s) of a unit trust. The governance structure of any fund will depend on the fund's size, structure, nature of business, risk profile of the operations and complexity. The governing body has responsibility for monitoring and supervising the fund's activities and affairs, including: ensure that they have sufficient and relevant knowledge and experience to carry out their duties (including undertakin...

    Continuing obligations of a Cayman Islands Registered Mutual Fund Administrative fines Compliance calendar Part A – Registered mutual fund obligations Annual fee Action Required Timing and Penalties Any change that materially affects any information i

  2. 2 days ago

    Continuing obligations for private and professional funds The board and officers Functionaries and other service providers Service provider Requirement Is an exemption available? Notice requirements Event triggering an obligation to notify the FSC Time

    As a recognised fund, your professional or private fund is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your professional or private fund's ongoing BVI obligations. Professional and private funds are recognised under the Securities and Investment Business Act, Revised Edition 2020 and are subject to the Mutual Funds Regulations, Revised Edition 2020. A professional or private fund must: At all times have at least two directors, at least one of whom must be an individual Appoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations) Appoint a Foreign Account Tax Compliance Act (FATCA) responsible officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS) A private or professional fund is required to have the following functionaries and other service providers: Manager A private or professional fund must at all times have a manager. Yes, in certain circumstances, on application to the FSC. Administrator A private or professional fund must at all times have an administrator. No exemption is available. Custodian A private or professional fund must at all times have a custodian. The custodian must be functionally independent from the manager and administrator. Yes, in certain circumstances, on application to the FSC. The most common exemptions are for feeder funds in a "master-feeder" structure and for funds whose prime broker provides the custodial services. Auditor A private or professional fund must appoint and at all times have an auditor to audit its financial statements. Yes, in certain circumstances, on application to the FSC. Authorised Representative A private or professional fund must have an FSC licenced authorised representative (Authorised Representative) to act as a point of contact between the fund and the FSC. No exemption is available. On the happening of certain events, a professional or private fund is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. The appointment of a functionary (ie the manager, administrator, investment advisor, custodian, any prime broker or (in the case of a unit trust) the trustee). Not less than 7 days prior to the date of appointment. A functionary ceasing to act (notice must include a statement of the reasons for such functionary ceasing to act). Within 7 days. The appointment of a director. Within 14 days. A director ceasing to hold office (for whatever reason). Within 14 days. The appointment of an Authorised Representative. Within 14 days. An Authorised Representative ceasing to hold office (for whatever reason). Within 14 days. The appointment of an auditor. Within 14 days. An auditor ceasing to hold office (for whatever reason). Within 14 days. Any change in the address of the fund's place of business, whether in or outside the BVI. Within 14 days. Any amendment to its constitutional documents. Within 14 days. The issuance of any offering document not previously provided to the FSC. Within 14 days. The amendment of any offering document previously provided to the FSC. Within 14 days. There are various reporting and payment deadlines for a professional or private fund throughout the year. 31 March Pay recognition fee of US$1,200 to the FSC. Failure to pay may attract administrative penalties and/or other enforcement action 30 April For funds that are limited partnerships, pay the Registrar of Corporate Affairs (together with the Registrar of Limited Partnerships, the Registry) licence fee of US$750 31 May FATCA reporting deadline and Common Reporting Standard (CRS) reporting deadline 31 May For funds that are companies incorporated ...

  3. 2 days ago

    Establishing a Hedge Fund in the BVI What factors determine whether a hedge fund must be regulated in the BVI? Which hedge fund product is right for me? What hedge fund structure should I use? What service providers will I need to get started? Investmen

    Are you thinking of setting up an investment fund in the British Virgin Islands (BVI)? This document provides an overview of the hedge funds industry in the BVI and why it is such an attractive jurisdiction for hedge funds. We explain the regulatory regime in the BVI, the fund structures and fund products available and how we can support you from the initial structuring and planning conversations, all the way through to the launch and ongoing support. The investment funds industry in the BVI is regulated by the Financial Services Commission (the Commission) and the primary legislation which governs the industry is the Securities and Investment Business Act, Revised Edition 2020, as amended (SIBA). This guide focuses on the open-ended hedge fund industry, but it should be highlighted that the BVI has a separate regulatory regime for private equity and other closed-ended funds – these are discussed in a separate legal guide. Do let us know if you would like further details. Generally, an entity will be considered to be a "mutual fund" and will be subject to regulation under SIBA if: It collects and pools investor funds for the purpose of collective investment It is open ended (ie its equity interests are redeemable at the option of its investors) The equity interests that it issues and that are redeemable entitle the holder to receive an amount calculated by reference to the value of a proportionate interest in the whole or a part of the net assets of the fund The BVI benefits from a diverse offering of hedge fund products suited to everyone from the start-up manager setting up an incubator fund to established institutional fund managers with billions under management. Its pragmatic flexibility over the twenty-five years of prudent regulation has actually been a large driver for the popularity it has generated amongst the global investment funds community. The characteristics of the products available are set out below. If you need help choosing the most suitable product for your fund, please contact us. Incubator fund The incubator fund is aimed at emerging managers and allows them a two year incubation or "validity" period (with an extension of up to 12 months available with permission from the Commission) to establish a track record and test its viability. During that period, the fund can operate with light regulation, very limited mandatory service providers and without having to carry out an audit. An incubator fund must remain within the following thresholds: Having no more than 20 investors Each investor, having been invited to invest, must make a minimum initial investment of US$20,000 The net assets of an incubator fund must not at any time exceed US$20 million Before the end of the validity period (or, if earlier, when it exceeds the relevant thresholds for two consecutive months) an incubator fund is required to convert to a private, professional or approved fund. If the fund determines that it is not viable to continue, it is required to wind up its operations. The incubator fund is required to conduct an audit as part of its conversion to a private or professional fund. An incubator fund benefits from a fast track approval process, enabling it to commence business as an incubator fund two business days after submitting a complete application to the Commission. Approved fund The approved fund is aimed at managers looking to establish a fund with a private offering to a small group of investors on a longer term basis. An approved fund is restricted to: Having no more than 20 investors Having net assets which do not at any time exceed US$100 million The approved fund has similar characteristics to the private fund recognised under SIBA, including no minimum initial investment for investors. Unlike the private fund, the approved fund is not required to appoint an auditor. It is also not required to appoint a manager or a custodian, unless it is set up as an SPC (please see below for more details). It is required to a...

  4. 3 days ago

    Establishing a Closed-Ended Fund in the BVI What factors determine whether a closed-ended fund must be regulated in the BVI? The BVI Private Investment Fund Regime What fund structure should I use? What service providers or appointed persons will I need

    Are you thinking of setting up a closed-ended investment fund in the British Virgin Islands (BVI)? This document provides an overview of the closed-ended funds industry in the BVI and why the BVI is such an attractive jurisdiction for private equity, venture capital and other closed-ended fund managers. We explain the regulatory regime in the BVI, the fund structures available and how we can support you from the initial structuring and planning conversations, all the way through to the launch and ongoing support. Closed-ended funds in the BVI are regulated by the Financial Services Commission (the Commission). The primary legislation which governs the industry is the Securities and Investment Business Act, Revised Edition 2020, as amended (SIBA), and the Private Investment Funds Regulations, Revised Edition 2020 (the PIF Regulations). This guide focuses on the closed-ended fund industry, but it should be highlighted that the BVI does have a separate regulatory regime for hedge funds and other open-ended funds – these are discussed in a separate legal guide. Do let us know if you would like further details. Generally, an entity will be considered to be a closed-ended fund and will be subject to regulation as a Private Investment Fund (or PIF) if: It collects and pools investor funds for the purpose of collective investment and diversification of portfolio risk, and The equity interests that it issues entitle the holder to receive an amount calculated by reference to the value of a proportionate interest in the whole or a part of the net assets of the fund BVI closed-ended funds falling within the definition of a PIF are generally required to be regulated by the Commission as a PIF. However certain entities, including but not limited to single investor funds, single asset funds, joint venture companies and special purpose acquisition companies do not require regulation as a PIF. The PIF is a flexible, cost-effective and lightly-regulated fund product which is suited for everyone from the start-up manager to established institutional private equity houses with billions under management. The characteristics of the PIF are set out below. Private investment fund Interests in a PIF may be distributed on either a "private" or a "professional" basis. There is no minimum investment amount for a PIF distributed on a private basis. If distributing on a "private" basis the PIF is restricted to either: Having no more than 50 investors or Making an invitation to subscribe for or purchase fund interests on a private basis only If the PIF interests are being distributed on a "professional" basis, they may only be made available to "professional investors" and the minimum initial investment by each professional investor must not be less than US$100,000 (or other currency equivalent), unless the investor is an "exempted investor" in which case there is no minimum initial investment. A professional investor is a person: Whose ordinary business involves, whether for that person's own account or the account of others, the acquisition or disposal of property of the same kind as the property, or a substantial part of the property, of the fund or Who, whether individually or jointly with their spouse, has a net worth in excess of US$1,000,000 (or other currency equivalent) which does include the primary residence An exempted investor means: The manager, administrator, promoter or underwriter of the fund or Any employee of the manager of the fund A PIF is required to issue an offering document or term sheet (although in certain circumstances the Commission can provide an exemption from this requirement). A PIF is required to maintain a clear and comprehensive policy for the valuation of its assets (Fund Property) with procedures that are sufficient to ensure that the valuation policy is effectively implemented. The valuation policy shall: Be appropriate for the nature, size, complexity, structure and diversity of the fund and Fund Property Be consis...

  5. 29 Jul

    Introduction to automatic exchange of information for BVI Investment Funds The legislative framework Funds as investment entities and therefore financial Institutions Reporting financial institutions Registration with the IRS Registration with FARS and

    This guide provides a high level summary of the main obligations for British Virgin Islands (BVI) investment funds under BVI automatic exchange of information (AEOI) legislation. The BVI Government is a signatory to: A Model 1B intergovernmental agreement with the United States (the IGA) which provides the framework for the implementation of the US Foreign Account Tax Compliance Act (FATCA) in the BVI The Organisation for Economic Co-operation and Development sponsored multi competent authority agreement regarding the new common l reporting standard on automatic exchange of information (CRS, together with the IGA, the AEOI Agreements) As BVI entities are not directly subject to the AEOI Agreements, the key BVI statute in relation to tax information exchange is the Mutual Legal Assistance (Tax Matters) Act, Revised Edition 2020 (MLAT) and the orders made under MLAT (together, the AEOI Legislation). The BVI International Tax Authority (ITA) is the designated competent authority under MLAT and is responsible for matters concerning tax information exchange. The ITA has issued guidance notes (the Guidance Notes) in relation to the IGA which can be found here and in relation to CRS which can be found here. There are differences between the AEOI Agreements which have been replicated in the AEOI Legislation in terms of the definitions and application to the business of any BVI fund. In practice, despite the differences, the majority of BVI investment funds fall within the definition of Investment Entity, under each of the regimes. There will be some very rare exceptions to this rule. Investment Entities are one of the types of financial institution under the AEOI Legislation. Under FATCA, the term "Foreign Financial Institution" is used, but for the purposes of this guide we will refer to FIs or Financial Institutions. The majority of BVI funds will, subject to some very limited exceptions, be Reporting FIs. Reporting FIs are required to comply with registration and reporting obligations imposed under the AEOI Legislation. The most notable obligations are: To report on financial accounts held by specific US persons or individuals or entities resident in certain jurisdictions (Reportable Accounts) To register with the Internal Revenue Service of the United States (IRS) to obtain a global intermediary identification number (GIIN) (even if the Reporting FI has no US Reportable Accounts) either through the IRS FATCA portal or through a paper submission. Registered Deemed Compliant FIs (which are specific low risk FIs that are exempt from full FATCA reporting obligations) are also obliged to register with the IRS. To register with the ITA through its online portal, the BVI "Financial Account Reporting System" (the BVI FARS) To identify Reportable Accounts in accordance with the due diligence requirements set out in the AEOI Agreements, the relevant AEOI Legislation and the Guidance Notes To report annually to the ITA certain specified information with respect to any Reportable Accounts. A BVI fund which is a reporting FI is required by FATCA to register with the IRS within 30 days of "starting business". While a fund is not technically operating until it starts to accept subscription payments from investors, in reality, all funds will have to provide their GIIN numbers to banking and other counterparties at a very early stage of their creation in order to open accounts. It is therefore important to get this registration done as soon as possible after the vehicle has been formed. When registering for a GIIN, the IRS portal requires the name of a natural person to be listed as the FI's responsible officer (RO), despite the fact that under the IGA this role is not mentioned. The application requires the RO to certify that the information provided is accurate and that the BVI fund will comply with its FATCA obligations. The RO should be someone with authority under BVI law to provide the confirmations and submit the information required by ...

  6. 28 Jul

    Ongoing obligations of approved managers Submission of annual returns Provision What to do and when? Renewal fee Provision What to do and when? Payment of Registry fees Provision What to do and when? Preparation and submission of financial statements Pr

    The Investment Business (Approved Managers) Regulations, Revised Edition 2020 (the Regulations) and Approved Investment Managers Guidelines (the Guidelines) establish a regime that allows eligible investment managers and advisers to be regulated under a simple approval process and avoid the licensing regime under Part I of the Securities and Investment Business Act, Revised Edition 2020 (SIBA). Regulation 16/Guideline 6.4 An Approved Manager must file an annual return with the Financial Services Commission (the Commission) no later than 31 January each year. The annual return must be in the prescribed form and must contain: 1. A statement that the Approved Manager is not in breach of the requirements of the Regulations 2. A confirmation that each director and senior officer of, and shareholder with a "significant interest" (generally speaking, more than ten per cent) in, the Approved Manager is fit and proper 3. Details, as at 31 December of the preceding year, of: 1. the funds (and persons) for which it provides services 2. the assets under management of each fund (and person) for which it acts 3. the number of investors in each fund for which it acts 4. any significant complaints received by the Approved Manager Regulation 6(2)/Guideline 7.1 An Approved Manager must pay an annual renewal fee of US$1,800 to the Commission by 31 March of each year.* * Ascentium's invoices for disbursements are distributed annually in November and are payable by 15 January. BVI Companies Act 2004 (as amended) For companies incorporated from 1 January to 30 June, pay the Registrar of Corporate Affairs (the Registry) licence fee by 31 May and for companies incorporated from 1 July to 31 December, pay the Registry licence fee by 30 November.* The Registry licence fee is US$550 for companies authorised issue up to 50,000 shares and US$1,350 for companies authorised to issue more than 50,000 shares * Ascentium's invoices for disbursements are distributed annually in November and are payable by 15 January. Regulation 14(1)/Guideline 6.2 An Approved Manager must prepare financial statements for each financial year in accordance with either UK generally accepted accounting principles (GAAP), US GAAP, Canadian GAAP, international financial reporting standards or such other recognised international accounting standards as may be approved by the Commission on a case-by-case basis. The financial statements do not need to be audited Financial statements must be signed by a director and submitted to the Commission within six months of the end of the financial year to which they relate. Such statements must be accompanied by a director's certificate (in the prescribed form) and a report on the affairs of the Approved Manager Regulation 13(1)/Guideline 6.1.1 An Approved Manager must at all times have: 1. At least two directors, at least one of whom shall be an individual (or in the case of a limited partnership, at least one general partner) 2. An authorised representative – this entity acts as the conduit between the Approved Manager and the Commission. An affiliate entity of Ascentium (Craigmuir Authorised Representative Limited) provides this service Anti-Money Laundering Regulations 2008 Anti-Money Laundering and Terrorist Financing Code of Practice 2008 Financial Services (Prudential and Statistical Returns) Order 2009 The BVI anti-money laundering regime applies to all Approved Managers as they are classified as "relevant persons" under the Anti-Money Laundering Regulations, 2008. In summary, an Approved Manager will be required to: 1. Put in place client onboarding procedures which address typical "know your client" requirements in respect of the funds (and persons) that will be clients of the Approved Manager 2. Appoint an officer or another individual as Money Laundering Reporting Officer 3. Report suspicious transactions to the BVI Financial Investigation Agency 4. Put in place documentation, such as a compliance manual, which outlines how the App...

  7. 27 Jul

    Continuing obligations for incubator funds The board and officers Functionaries and other service providers Notice requirements Event triggering an obligation to notify the FSC Time frame Notices in relation to an incubator fund's validity period Annual

    As a mutual fund, your incubator fund is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your incubator fund's ongoing BVI obligations. Incubator funds are governed by the Securities and Investment Business (Incubator and Approved Funds) Regulations, Revised Edition 2020 (the Regulations) and the Incubator and Approved Funds Guidelines. An incubator fund must: At all times have at least two directors, at least one of whom must be an individual Appoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations) Appoint a Foreign Account Tax Compliance Act (FATCA) Responsible Officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS) An incubator fund is required to have an FSC licenced authorised representative (Authorised Representative) at all times to act as a point of contact between the fund and the FSC. This is a service offered by our strategic alliance partner, Craigmuir Authorised Representative Limited. It is not required to have any other functionaries or service providers, although it is free to appoint them should it wish to. On the happening of certain events, an incubator fund is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. An Authorised Representative ceasing to hold office (for whatever reason) Immediately Any change to the information provided to the FSC with the application ie: change of Authorised Representative; change of director or general partner or to any details provided in relation to a director or general partner; amendment to constitutional documents; amendment to offering document (if applicable); and/or change to investment warning and/or description of investment strategy (where there is no offering document) Within 14 days Total number of investors exceeds the threshold for two consecutive months Within 7 days of the end of the second month Maximum value of the fund's assets exceeds the threshold for two consecutive months Within 7 days of the end of the second month Any matter related to the conduct of the business activities of the fund which may have a material impact on the fund (for example a suspension of subscriptions or redemptions or becoming subject to legal or regulatory proceedings) Immediately Number of directors falls below two (for whatever reason) Immediately The initial period of validity of an incubator fund is two years. If an incubator fund wishes to extend its period of validity for a period not exceeding 12 months, it must submit a written application to the FSC requesting the extension at least one month prior to the end of its period of validity (or such shorter period as the FSC may approve). If an incubator fund wishes to continue to operate after the end of the validity period, it must submit to the FSC an application to convert into a private, professional or approved fund at least two months prior to the expiry of the validity period (or such shorter period as the FSC may approve). If the incubator fund is applying to convert to a private or professional fund, it must also prepare and submit to the FSC an audit of its current financial position and compliance with the requirements of the Regulations at least two months prior to the expiry of the period of validity. There are various reporting and payment deadlines for an incubator fund throughout the year. 31 January File semi-annual return in respect of previous six months with the FSC 31 January Submit a statement that the fund is not in breach of the requirements of the Regulations 31 March Pay approval fee of US$1,200 to the FSC. Failure to pay may attract administrat...

  8. 27 Jul

    Continuing obligations for approved funds The board and officers Functionaries and other service providers Notice requirements Event triggering an obligation to notify the FSC Time frame Annual regulatory and government requirements Due by date Action R

    As a mutual fund, your approved fund is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your approved fund's ongoing BVI obligations. Approved funds are governed by the Securities and Investment Business (Incubator and Approved Funds) Regulations, Revised Edition 2020 (the Regulations) and the Incubator and Approved Funds Guidelines. An approved fund must: At all times have at least two directors, at least one of whom must be an individual Appoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a director of the fund itself or a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations) Appoint a Foreign Account Tax Compliance Act (FATCA) Responsible Officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS). An approved fund is required to have an administrator at all times. It is also required to have an FSC licenced authorised representative (Authorised Representative) at all times to act as a point of contact between the fund and the FSC. This is a service offered by our strategic alliance partner, Craigmuir Authorised Representative Limited. It is not required to have any other functionaries or service providers, although it is free to appoint them should it wish to. On the happening of certain events, an approved fund is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. A change of administrator Immediately An Authorised Representative ceasing to hold office (for whatever reason) Immediately Any change to the information provided to the FSC with the application ie: change of Authorised Representative; change of director or general partner or to any details provided in relation to a director or general partner; amendment to constitutional documents; amendment to offering document (if applicable); and/or change to investment warning and/or description of investment strategy (where there is no offering document) Within 14 days Total number of investors exceeds the threshold for two consecutive months Within seven days of the end of the second month Maximum value of the fund's assets exceeds the threshold for two consecutive months Within seven days of the end of the second month Any matter related to the conduct of the business activities of the fund which may have a material impact on the fund (for example a suspension of subscriptions or redemptions or becoming subject to legal or regulatory proceedings) Immediately Number of directors falls below two (for whatever reason) Immediately There are various reporting and payment deadlines for an approved fund throughout the year. 31 January File annual return in respect of previous year ending 31 December with the FSC 31 March Pay approval fee of US$1,200 to the FSC. Failure to pay may attract administrative penalties and/or other enforcement action 30 April For funds that are limited partnerships, pay the licence fee of US$750 to the Registrar of Limited Partnerships (together with the Registrar of Corporate Affairs, the Registry) 31 May FATCA reporting deadline and Common Reporting Standard (CRS) reporting deadline 31 May For funds that are companies incorporated from 1 January to 30 June, pay the Registry licence fee* 1 June Pay annual enrolment fee of US$185 to the ITA through the ITA's online portal By the date six months after the end of its financial year (30 June assuming financial year end is 31 December) Provide a copy of the fund's financial statements (which do not need to be audited) to the FSC Pay annual enrolment fee of US$185 to the ITA through the ITA's online portal 30 September CRS additional information form filing deadline 30 November For funds that are companies ...

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Exploring the Funds Hub is a captivating podcast series containing audio of written content that dives deep into the intriguing world of offshore funds, including the BVI and Cayman. Each episode sails through complex waters, bringing you up-to-date analysis and expert commentary from the leading minds in this specialised field. Our episodes demystify legal jargon and break down complex terminology to make them accessible to all. Harneys, an international law firm with entrepreneurial thinking, brings each episode to you.

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