British Virgin Islands Approved Fund

The principal legislation pertaining to funds in the British Virgin Islands (BVI) is the Securities and Investment Business Act (SIBA). Key Features The approved fund is designed for smaller strategies and friends and family funds and has a higher net asset value threshold and no limit to the length of time if may qualify as an approved fund.  It also differs from the incubator fund in requiring an administrator.  Key differentiating criteria from other fund types include:

• The total number of investors is limited to 20.
• Net assets of the fund must not exceed US$100,000,000 or its equivalent in any other currency.
• The approved fund must have an administrator, but it is not required to have a manager or custodian.
• No audit required.

Legal Requirements

Requirements	Description
General
Corporate  vehicle permitted	International Business Company (IBC), Partnership or Unit Trust
Local physical office required	No
Share capital or equivalent
Minimum subscription	USD 20,000
Limit to investors	Maximum of 20
Directors
Minimum number	2
Corporate directorship allowed	Yes
Local director required	No
Service Providers Required
Custodian	No
Fund manager/Investment manager	No
Fund administrator	Yes
Auditors	No
Legal Advisers	Yes

Tax Treatment Mutual Funds are tax exempt Duration to Set Up About 3 months Distinctive Benefits of Licence

• Tax exemption of Mutual Funds;
• A recognized and respected legal system supported by English common law, modern local legislation and a well-developed court system, including a dedicated commercial division;
• No regulatory restrictions on investment policies or strategies or on performance and other fee arrangements;
• No requirement to appoint local directors or local functionaries;
• Various types of fund structures including, single class funds, multi-class funds and master-feeder funds are facilitated;
• Statutory segregated portfolio ring-fencing; and
• Amendment of constitutional documents may be made by shareholders or directors where so authorized.

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