The Collective Investment Schemes Act 2008 (“CIS Act”) sets out the statutory framework in the Isle of Man for the promotion and regulation of collective investment schemes (“funds”).

Key Features

  • Not retail – minimum initial investment level above US$100,000
  • No regulatory pre-approval
  • Post event notifications to the Authority
  • Must appoint an administrator in IOM or acceptable jurisdiction
  • No formal requirements for a custodian
  • Flexibility on investment advisory/ asset management requirements
  • Investors must be “specialist investors”
  • Normally sold through Independent Financial Advisers to specialist investors or direct to institutional investors

Legal Requirements

Requirements

Description

General

  • Corporate  vehicle permitted

Company, Limited partnership, Unit trust

  • Local physical office required

No

Share capital or equivalent

  • Minimum subscription

USD 100,000

  • Minimum investors

None

Directors

  • Minimum number

2

  • Corporate directorship allowed

Yes

  • Local director required

Yes (if Administrator is not IoM resident)

Service Providers Required

  • Custodian

No

  • Fund manager/Investment manager

No

  • Fund administrator

Yes (local)

  • Auditors

Yes

Tax Treatment

Non-Isle of Man sourced income is free of tax, and there are no withholding taxes, so that non-resident investors will receive income and capital returns without deduction.

Duration to Set Up

2 months

Distinctive Benefits of Licence

  • Low tax status
  • Political and economic stability
  • Proximity to the key markets of Europe
  • Cost-effective alternative for the domicile of investment funds
  • Has a wide range of fund service providers
  • Sophisticated professional and banking infrastructure, the Island offers a solution for all fund promoters
  • The Isle of Man has a well-founded reputation as a premier jurisdiction in terms of regulation and achieves a balance between
  • Provides a business-friendly environment and, on the other hand, meets international standards of financial supervision

The Valsen Advantage

  • End to end comprehensive service
  • Speedy and efficient service
  • Expert advice on structuring options
  • Dedicated ongoing compliance support
  • Extensive network pool of service providers