Wed, Jan 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

British Virgin Islands to introduce new category of investment manager license for smaller hedge funds

Wednesday, December 05, 2012
Opalesque Industry Update: Ogier British Virgin Islands (BVI) announced today that the BVI Financial Services Commission (FSC), the jurisdiction’s financial regulator, has published guidelines for a new type of investment management licensing regime targeting non-institutional investment managers of small and mid-sized investment funds.

The Investment Business (Approved Managers) Regulations, 2012 – known as the Approved Managers Regulations – come into force on 10 December 2012. The regime will provide eligible investment managers of BVI funds opting to also domicile their investment management vehicles in the jurisdiction with a streamlined regulatory framework, acknowledging both the sophistication of investing into such funds and the lower systemic risk posed by these funds to the global financial system.

“We see the Approved Managers Regulations as particularly appealing to start-ups or smaller investment managers that want to set up and manage funds in the most efficient and effective way possible, given their size and investor base,” said Ogier BVI Corporate and Investment Funds Partner, Simon Schilder, who has also been actively involved in the private sector consultations for these new regulations. “We believe the new regime will be an appealing product for eligible investment managers and will represent a cost effective option which is, at the same time, in tune with current regulatory requirements and international standards for the oversight of investment managers.”

Growth Opportunities for Small Hedge Funds

Recent analyses show the small hedge fund market as growing, despite difficulties these funds typically face in securing capital. A report by Barclays Capital identified a trend beginning in 2011 towards an increasing share of allocations going to funds with less than $1 billion in assets. The Barclays research shows this trend will continue throughout 2012. The research also reported investors indicating a 77-percentage point tilt in favor of increasing allocations to small funds, compared with a 10-percentage point tilt toward large funds (with assets under management of $5 billion).

Key Requirements for Eligibility Under the Approved Managers Regulations

Among the requirements for eligibility under the Approved Managers Regulations are for the investment manager to:

  • Be a BVI company or limited partnership;
  • Act as investment manager or advisor to either a BVI licensed private or professional fund; a closed-ended fund domiciled in the BVI with characteristics substantially similar to either a BVI licensed private or professional fund; or a foreign fund investing substantially all of its assets in a BVI domiciled fund;
  • Satisfy the FSC’s fit and proper test;
  • Maintain, in the case of open-ended funds, aggregate assets under management of US$400 million and, in the case of closed-ended funds, aggregate capital commitments of US$1 billion; and
  • File an application for approval not less than seven days prior to the intended commencement of business.

A full briefing of all the provisions of the AMR is available via the following link: http://www.ogier.com/Publications/library/Pages/InvestmentBusiness(ApprovedManagers)Regulations,2012.aspx

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager