Answer ... Part II of the Securities and Investment Business Act (SIBA) provides restrictions for the marketing of alternative investment funds in the British Virgin Islands, but has not been brought into force. Any fund not formed in the British Virgin Islands and soliciting an individual within the British Virgin Islands to subscribe for, or purchase, any of its fund interests will be deemed to be carrying on business in the British Virgin Islands and will need to seek recognition by the BVI Financial Services Commission (FSC) as a foreign fund in accordance with the Mutual Funds (Foreign Funds) Regulations, 2019.

Answer ... Foreign funds must issue a prospectus complying with the Public Funds Code, as if registered as a public fund. A foreign fund must appoint an administrator, custodian (subject to certain available exemptions) and a fund manager, each functionally independent from the other. A foreign fund must also prepare financial statements complying with internationally recognised accounting standards as approved by the FSC and appoint an auditor to audit its financial statements.

Answer ... A completed application, together with all required supporting documentation, must be submitted to the FSC. Recognition usually takes one to two weeks from the date on which the application is submitted, provided that the application is completed and the FSC does not need to raise significant enquiries in relation to the application.

Answer ... BVI funds must comply with the marketing restrictions that apply to the classification of fund that applies to them.

Answer ... The prospectus of a public fund or foreign funds must contain:

• prescribed information regarding the manager, administrator, custodian, prime broker, investment adviser, registrar and transfer agent, auditor, legal advisors, authorised representative and promoter;
• the names, qualifications and experience of directors;
• information regarding the constitution and objectives of the fund;
• characteristics of the fund interests;
• characteristics of the fund;
• information regarding the valuation of fund property and interests;
• disclosures regarding fees;
• disclosures regarding distributions;
• disclosures regarding the terms of issue and redemption of fund interests;
• general information regarding the date of publication, the address at which additional information can be obtained and the dates on which reports will be published;
• the consequences of misrepresentations made in the prospectus and the rights of investors in such circumstances; and
• other information which investors and their advisers would reasonably require and expect to make an informed judgement about the merits of investing in the fund.

Other categories of fund in the British Virgin Islands need not issue a prospectus. Most funds issue an offering document. Although there is no strict requirement to do so under BVI law, having a carefully drafted offering document setting out the terms of offering of the fund protects managers and operators of investment funds from claims of misrepresentation.

Answer ... Each category of investment fund in the British Virgin Islands has certain prescribed investment warnings and disclosures which must be provided to investors. These are normally contained within the offering document.

Answer ... At this time, fund managers from other jurisdictions marketing alternative investment funds in the British Virgin Islands are not restricted. However, those funds must be recognised as foreign funds.

Answer ... Not at this time.

Answer ... Only if the fund is registered as a public fund or recognised as a foreign fund.