The Regulations enable Incubator and Approved Funds to be set up and launched on a fast track, cost effective basis with minimal regulatory oversight by the BVI Financial Services Commission. This restriction often caused a manager difficulty in fund raising as even friends and relatives would generally prefer a mechanism to enable them to withdraw their funds on demand if needed or to allow them to vote with their feet if investment strategy was not going to plan. These funds have satisfied a recognised need in the market for a lightly regulated investment vehicle that can easily grow along with a first time or start up manager as their business and assets under management grow.įor many years, a type of closed end structure was used to fill this void, and while those structures may still have their place, the draw back was that they were closed – not in the sense of a limited offering of shares but rather an investor’s right to redeem was restricted. Approved Funds being marginally more popular than Incubator Funds. As we thought at the time, these have quickly become popular vehicles in short order for startup and new managers, with more than 50 new funds being established in a short period. ![]() ![]() ![]() A few years ago, the Incubator Fund and the Approved Fund were introduced in the British Virgin Islands under the Securities and Investment Business (Incubator and Approved Funds) Regulations, 2015.
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