Exploring the Funds Hub

About Exploring the Funds Hub

Exploring the Funds Hub is a captivating podcast series containing audio of written content that dives deep into the intriguing world of offshore funds, including the BVI and Cayman. Each episode sails through complex waters, bringing you up-to-date analysis and expert commentary from the leading minds in this specialised field. Our episodes demystify legal jargon and break down complex terminology to make them accessible to all. Harneys, an international law firm with entrepreneurial thinking, brings each episode to you.

Publisher

Harneys

Category

business · business · government

Language

en

Explicit

No

First episode

17 Aug 2015

Latest episode

4 Aug 2026

Latest episodes

75 episodes in the feed.

1. 

   4 Aug 2026

   Continuing obligations for private and professional funds The board and officers Functionaries and other service providers Service provider Requirement Is an exemption available? Notice requirements Event triggering an obligation to notify the FSC Time frame Annual regulatory and government requirements Due by date Action Maintenance of records and financial statements Fund policies and arrangements Anti-money laundering obligations Obligations under FATCA and CRS? Beneficial ownership regime

   As a recognised fund, your professional or private fund is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your professional or private fund's ongoing BVI obligations. Professional and private funds are recognised under the Securities and Investment Business Act, Revised Edition 2020 and are subject to the Mutual Funds Regulations, Revised Edition 2020. A professional or private fund must: At all times have at least two directors, at least one of whom must be an individual Appoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations) Appoint a Foreign Account Tax Compliance Act (FATCA) responsible officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS) A private or professional fund is required to have the following functionaries and other service providers: Manager A private or professional fund must at all times have a manager. Yes, in certain circumstances, on application to the FSC. Administrator A private or professional fund must at all times have an administrator. No exemption is available. Custodian A private or professional fund must at all times have a custodian. The custodian must be functionally independent from the manager and administrator. Yes, in certain circumstances, on application to the FSC. The most common exemptions are for feeder funds in a "master-feeder" structure and for funds whose prime broker provides the custodial services. Auditor A private or professional fund must appoint and at all times have an auditor to audit its financial statements. Yes, in certain circumstances, on application to the FSC. Authorised Representative A private or professional fund must have an FSC licenced authorised representative (Authorised Representative) to act as a point of contact between the fund and the FSC. No exemption is available. On the happening of certain events, a professional or private fund is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. The appointment of a functionary (ie the manager, administrator, investment advisor, custodian, any prime broker or (in the case of a unit trust) the trustee). Not less than 7 days prior to the date of appointment. A functionary ceasing to act (notice must include a statement of the reasons for such functionary ceasing to act). Within 7 days. The appointment of a director. Within 14 days. A director ceasing to hold office (for whatever reason). Within 14 days. The appointment of an Authorised Representative. Within 14 days. An Authorised Representative ceasing to hold office (for whatever reason). Within 14 days. The appointment of an auditor. Within 14 days. An auditor ceasing to hold office (for whatever reason). Within 14 days. Any change in the address of the fund's place of business, whether in or outside the BVI. Within 14 days. Any amendment to its constitutional documents. Within 14 days. The issuance of any offering document not previously provided to the FSC. Within 14 days. The amendment of any offering document previously provided to the FSC. Within 14 days. There are various reporting and payment deadlines for a professional or private fund throughout the year. 31 March Pay recognition fee of US$1,200 to the FSC. Failure to pay may attract administrative penalties and/or other enforcement action 30 April For funds that are limited partnerships, pay the Registrar of Corporate Affairs (together with the Registrar of Limited Partnerships, the Registry) licence fee of US$750 31 May FATCA reporting deadline and Common Reporting Standard (CRS) reporting deadline 31 May For funds that are companies incorporated ...

2. 

   28 Jul 2026

   Ongoing obligations of approved managers

   The Investment Business (Approved Managers) Regulations, Revised Edition 2020 (the Regulations) and Approved Investment Managers Guidelines (the Guidelines) establish a regime that allows eligible investment managers and advisers to be regulated under a simple approval process and avoid the licensing regime under Part I of the Securities and Investment Business Act, Revised Edition 2020 (SIBA). We outline below some of the ongoing obligations of approved investment managers and advisors (each referred to as an Approved Manager) under the Regulations and the Guidelines. Provision What to do and when? Regulation 16/Guideline 6.4 An Approved Manager must file an annual return with the Financial Services Commission (the Commission) no later than 31 January each year. The annual return must be in the prescribed form and must contain: 1. A statement that the Approved Manager is not in breach of the requirements of the Regulations 2. A confirmation that each director and senior officer of, and shareholder with a "significant interest" (generally speaking, more than ten per cent) in, the Approved Manager is fit and proper 3. Details, as at 31 December of the preceding year, of: 1. the funds (and persons) for which it provides services 2. the assets under management of each fund (and person) for which it acts 3. the number of investors in each fund for which it acts 4. any significant complaints received by the Approved Manager Provision What to do and when? Regulation 6(2)/Guideline 7.1 An Approved Manager must pay an annual renewal fee of US$1,800 to the Commission by 31 March of each year.* * Harneys Corporate Services' invoices for disbursements are distributed annually in November and are payable by 15 January. Provision What to do and when? BVI Companies Act 2004 (as amended) For companies incorporated from 1 January to 30 June, pay the Registrar of Corporate Affairs (the Registry) licence fee by 31 May and for companies incorporated from 1 July to 31 December, pay the Registry licence fee by 30 November.* The Registry licence fee is US$550 for companies authorised issue up to 50,000 shares and US$1,350 for companies authorised to issue more than 50,000 shares * Ascentium's invoices for disbursements are distributed annually in November and are payable by 15 January. Provision What to do and when? Regulation 14(1)/Guideline 6.2 An Approved Manager must prepare financial statements for each financial year in accordance with either UK GAAP, US GAAP, Canadian GAAP, IFRS or such other recognised international accounting standards as may be approved by the Commission on a case-by-case basis. The financial statements do not need to be audited. Financial statements must be signed by a director and submitted to the Commission within six months of the end of the financial year to which they relate. Such statements must be accompanied by a director's certificate (in the prescribed form) and a report on the affairs of the Approved Manager. Provision What to do and when? Regulation 13(1)/Guideline 6.1.1 An Approved Manager must at all times have: 1. At least two directors, at least one of whom shall be an individual (or in the case of a limited partnership, at least one general partner) 2. An authorised representative – this entity acts as the conduit between the Approved Manager and the Commission. An affiliate entity of Harneys Corporate Services (Craigmuir Authorised Representative Limited) provides this service Provision What to do and when? Anti-Money Laundering Regulations 2008 Anti-Money Laundering and Terrorist Financing Code of Practice 2008 Financial Services (Prudential and Statistical Returns) Order 2009 The BVI anti-money laundering regime applies to all Approved Managers as they are classified as "relevant persons" under the Anti-Money Laundering Regulations, 2008. In summary, an Approved Manager will be required to: 1. Put in place client onboarding procedures which address typical "know your client" requirements in respect...

3. 

   27 Jul 2026

   Continuing obligations for approved funds

   As a mutual fund, your approved fund is regulated by the British Virgin Islands (BVI) Financial Services Commission (the FSC). This note provides a quick reference to your approved fund's ongoing BVI obligations. Approved funds are governed by the Securities and Investment Business (Incubator and Approved Funds) Regulations, Revised Edition 2020 (the Regulations) and the Incubator and Approved Funds Guidelines. An approved fund must: At all times have at least two directors, at least one of whom must be an individualAppoint an appropriately qualified and independent individual as Money Laundering Reporting Officer (MLRO) for the fund who may, in practice, be a director of the fund itself or a person provided by one of the functionaries to the fund (see below for more detail on anti-money laundering obligations)Appoint a Foreign Account Tax Compliance Act (FATCA) Responsible Officer and a principal point of contact for the BVI International Tax Authority (ITA)(see below for more detail on obligations under FATCA and CRS). An approved fund is required to have an administrator at all times. It is also required to have an FSC licenced authorised representative (Authorised Representative) at all times to act as a point of contact between the fund and the FSC. This is a service offered by our strategic alliance partner, Craigmuir Authorised Representative Limited. It is not required to have any other functionaries or service providers, although it is free to appoint them should it wish to. On the happening of certain events, an approved fund is required to notify the FSC. The table below summarises these notification requirements and the timeframe for providing notice. Event triggering an obligation to notify the FSC Time frame A change of administrator Immediately An Authorised Representative ceasing to hold office (for whatever reason) Immediately Any change to the information provided to the FSC with the application ie: change of Authorised Representative; change of director or general partner or to any details provided in relation to a director or general partner; amendment to constitutional documents; amendment to offering document (if applicable); and/or change to investment warning and/or description of investment strategy (where there is no offering document) Within 14 days Total number of investors exceeds the threshold for two consecutive months Within seven days of the end of the second month Maximum value of the fund's assets exceeds the threshold for two consecutive months Within seven days of the end of the second month Any matter related to the conduct of the business activities of the fund which may have a material impact on the fund (for example a suspension of subscriptions or redemptions or becoming subject to legal or regulatory proceedings) Immediately Number of directors falls below two (for whatever reason) Immediately There are various reporting and payment deadlines for an approved fund throughout the year. Due by date Action 31 January File annual return in respect of previous year ending 31 December with the FSC 31 March Pay approval fee of US$1,200 to the FSC. Failure to pay may attract administrative penalties and/or other enforcement action 30 April For funds that are limited partnerships, pay the licence fee of US$750 to the Registrar of Limited Partnerships (together with the Registrar of Corporate Affairs, the Registry) 31 May FATCA reporting deadline and Common Reporting Standard (CRS) reporting deadline 31 May For funds that are companies incorporated from 1 January to 30 June, pay the Registry licence fee* 1 June Pay annual enrolment fee of US$185 to the ITA through the ITA's online portal By the date six months after the end of its financial year (30 June assuming financial year end is 31 December) Provide a copy of the fund's financial statements (which do not need to be audited) to the FSC Pay annual enrolment fee of US$185 to the ITA through the ITA's online portal 30 September CRS addition...