BACKGROUND
- The International Financial Services Centres Authority (‘IFSCA'), in its meeting held on June 24, 2025 has, inter alia, approved pivotal amendments to the IFSCA (Fund Management) Regulations, 2025, facilitating the introduction of Third-Party Fund Management Services, commonly referred to as the “Platform Play” model, within IFSC
OVERVIEW AND KEY FEATURES OF THE APPROVED FRAMEWORK
- Registered Fund Management Entities (‘FMEs') in IFSC can now launch and manage Restricted Schemes on behalf of third-party fund managers (overseas or domestic), without requiring the latter to establish a physical presence in the IFSC.
- In order to ensure adequate governance and investor protection,
the framework mandates the following:
- Cap of USD 50 million corpus per scheme under such arrangement
- Mandatory authorisation for FMEs engaging in Third-Party Fund Management Services
- Additional net worth requirement of USD 500,000 for such FMEs
- Appointment of a dedicated Principal Officer for each such scheme
- Defined eligibility criteria for third-party managers availing the platform
- Full supervisory responsibility and liability to remain with the IFSC-based FME
- The structure is designed to offer a cost-effective, scalable solution for global asset managers to access capital through a hosted structure, without setting up a direct presence in the IFSC.
- The detailed amendments and formal notification are awaited from IFSCA.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
