Barbados Mutual Funds License – Exempt

The Barbados Mutual Funds Act sets forth the regulatory environment for operation of mutual funds in Barbados. There are also several additional Regulations on the subject of mutual funds regulation, and a range of Policy Guidelines issued by the Barbados Registrar of Mutual Funds and dealing with the finer points of the practical application of the Mutual Funds Act.

Permitted Activities

The Barbados Mutual Funds Act defines a Mutual fund business as a the holding of equity interests in the form of shares and the pooling of investor funds with the aim of spreading investment risks and enabling investors in the mutual fund to receive profits or gains from the acquisition, holding, management or disposal of investments;

The investment of the pooled resources in securities, in accordance with the mutual fund investment policies and objectives; and

A mutual fund that is licensed in a foreign jurisdiction approved by the Minister and which is not suspended from operation in that jurisdiction may be granted a licence as an exempt mutual fund.

A mutual fund that is licensed in a foreign jurisdiction approved by the Minister and which is not suspended from operation in that jurisdiction may be granted a licence as an exempt

mutual fund.

Legal Requirements

Sr.

No

Element Requirement(s)
Entity Requirements The entity making the application is Barbados:

  1. A registered unit trust;
  2. A company;
  3. A partnership; or
  4. A society, that has been granted a licence under this Act for the purpose of carrying on mutual fund business in or from Barbados in compliance with this Act
Director’s Requirements The licensee will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.
Shareholder requirements
  • The fund will need at least two promoters.
  • Corporate shareholding is allowed and 100% foreign ownership is permitted.
Compliance Officer The Licensee must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.
Fund Administrator The Applicant must employ a fund administrator with no local requirement
Fund Manager The Applicant must employ a fund manager with no local requirement
Custodian
  • The applicant must have a custodian approved by the FSC.
  • A Custodian licensed and approved locally the Commission.
  • A Custodian licensed and approved under the laws of a recognized country or jurisdiction.
  • A person with a written permission from the Commission to carry on Business as a Custodian.
Local Office The applicant must have premises acceptable to the authority. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.
Auditor The Licensee, within one month after becoming licensed, shall appoint an external auditor who is acceptable to the Commission

Ongoing Obligations

  1. Licenses are to be renewed annually after the date of registration. On application for renewal of a Licence, the Commission , if satisfied that the applicant is a licensee of good standing, may grant the renewal on payment by the applicant of the annual renewal Licence fee
  2. Filing of Audited Accounts: The licensee shall for the financial year beginning on the day on which it commences to carry on securities business; and for each subsequent year submit to the Commission, within ninety days after the end of the financial year, audited financial statements prepared in accordance with international accounting standards, and which contain such additional information as may be prescribed.
  3. The Licensee must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.

About Valsen Fiduciaries

Valsen Fiduciaries is a licensed independent global service provider of a broad range of fiduciary, administrative, legal, corporate secretarial and support services.

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The Valsen Advantage

  • We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of securities dealer licenses in all major jurisdictions.
  • Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  • We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  • We have a full in-house compliance support for all compliance requirements with the regulator and service providers

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