Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Alternative Investment Funds
Must alternative investment funds be authorised or licensed in your jurisdiction?
British Virgin Islands

Answer ... Yes, alternative investment funds must either be registered as a public fund, recognised as a professional or private fund, approved as an incubator or approved fund or recognised as a private investment fund.

For more information about this answer please contact: Ian Montgomery from Collas Crill
If so, what criteria must be satisfied to obtain authorisation? Do any restrictions apply in this regard?
British Virgin Islands

Answer ... In order to apply for authorisation, the fund must ensure that it satisfies the criteria of the relevant classification of fund that it is applying for (as discussed in question 1.2). It must then submit an application together with supporting documentation and the relevant application fee to the BVI Financial Services Commission (FSC). The application and supporting documentation required vary depending on the category of application, but generally the application will contain some or all of the following:

  • details of the applicant;
  • the date on which the applicant intends to commence business;
  • the name and address of each of the applicant’s directors or general partner or trustee (as applicable);
  • the name and address of the fund’s authorised representative;
  • the address of any place or places of business that the fund may have outside the British Virgin Islands;
  • details of the fund’s functionaries, including the name, address, jurisdiction of organisation and name of regulator (if applicable);
  • the name and address of the fund’s auditor (if applicable);
  • whether the fund has issued or intends to issue an offering document;
  • confirmation as to the classification type of the applicant and the clause in the constitutional documents that specifies that classification;
  • details of the fund’s accounting period;
  • confirmation regarding previous conduct and regulatory or enforcement action; and
  • a declaration from the applicant.

The application must be submitted together with such documents as must be submitted with the application for the relevant classification of the fund, which in most cases will be:

  • a copy of the fund’s constitutional documents;
  • a resume or CV for each director;
  • a copy of the offering document containing the prescribed investment warning or, in the absence of an offering document, a copy of the investment warning and summary of the investment strategy to be provided to investors;
  • a copy of the valuation policy, if not contained in the offering document; and
  • a letter from the appointed auditor, consenting to act.

A fund making an application to be registered as a public fund must also submit:

  • a prospectus complying with the Public Funds Code;
  • a statement setting out the nature and scope of the business to be carried on by the fund;
  • any country where the fund is carrying on business or intends to carry on business; and
  • a copy of each functionary agreement.

For more information about this answer please contact: Ian Montgomery from Collas Crill
What is the process for obtaining authorisation of alternative investment funds and how long does this usually take?
British Virgin Islands

Answer ... The process is slightly different for each category of fund, but essentially, a complete application, together with all supporting documentation and the application fee, must be submitted to the FSC. Recognition is normally granted within one to two weeks if no further requests or enquiries are made by the FSC. A fund intending to operate as a private investment fund or a professional fund may operate for 21 days before obtaining recognition. A fund applying for approval as an incubator or approved fund may commence business two business days following submission of a complete application.

For more information about this answer please contact: Ian Montgomery from Collas Crill
Alternative Investment Funds