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The British Virgin Islands (BVI) has long been a jurisdiction of choice for the establishment of companies for use as asset holding vehicles. The development of the inter-connected global economy has led further to the widespread adoption of BVI companies as private equity or investment funds. Today, the BVI is home to over 2,000 registered and recognised investment funds.
The BVI’s popularity was earned through its effective regulatory platform that is aligned to global regulatory standards, and its immensely flexible funds framework. Apart from the Approved Manager Regime, BVI further enhanced its fund product offering by launching two lightly regulated fund products – Incubator Funds and Approved Funds – which are primarily aimed at start-up emerging managers, and those managing funds for smaller groups of closely connected investors, such as family offices. They are designed to provide a fast and cost effective method for managers to start open-ended funds.
The statutory legislation governing most funds in the BVI is the Securities and Investment Business Act (Revised) (SIBA) and the underlying Mutual Fund Regulations (Revised), and Private Investment Funds Regulations, 2019 for closed-end funds. The SIBA governs both open-end and closed-end funds in the BVI, which are thus regulated and supervised by the Financial Services Commission (FSC).
Under SIBA, the six types of regulated investment funds are:
- Private funds
- Professional funds
- Public funds
- Incubator funds
- Approved funds
- Private investment funds (closed-end)
Marbury’s team comprises BVI lawyers with over 20 years practice and experience advising clients across the world. We have compiled a table of the features of each of the BVI open-end fund options as a quick comparison tool.
For further information, or to discuss specific circumstances, please Contact Us.
Disclaimer: The information contained is not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations. The information contained is believed to be correct as at 3 May 2022. It does not take account of any changes in law or practice after that date.