Valsen Fiduciaries Funds

Bahamas Professional Fund

The Securities Commission of the Bahamas (SCB) regulates mutual funds under the Investment Funds Act (IFA), 2003. This Act sets out the guidelines pertaining to the application and licensing of Bahamas Mutual funds

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About Bahamas Professional Fund

The Investment Funds Act (IFA), 2003 positioned the Bahamas at the cutting edge of modern investment fund administration. The IFA also maintains the existence of a dual licensing regime whereby the Securities Commission of the Bahamas (SCB) is permitted to license all classes of funds and unrestricted fund administrators (UFA) may license professional & SMART funds.

Bahamas Professional Fund is a separate class designed for sophisticated investors, and may be licensed by an authorized administrator (in addition to the Securities Commission) thereby enabling faster time to launch.

Bahamas Professional Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Investment Funds Act (IFA), 2003 .

  1. Supervising Authority

Securities Commission of the Bahamas (SCB )

  1. Corporate vehicle permitted

Any Licensed structures:

IBC (International Business Company)

LP (Limited Partnership)

Trust with units representing ownership

Limited Liability Company

Managed Investment Companies with shares, or to a lesser extent

  1. Share capital or equivalent

    • Minimum subscription

Natural Person Exceeds USD 1,000,000

Trust Exceeds USD 5,000,000

    • Minimum investors

None

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

    • Custodian

      • Custodian required

Yes

      • Local custodian required

No

      • Eligible custodian

Any other person as the Securities Commission of the Bahamas (SCB ) may approve.

    • Fund manager / Investment manager

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Securities Commission of the Bahamas (SCB ) licensed fund Manager

Approved Foreign Fund Manager by any other authority recognized by Securities Commission of the Bahamas (SCB )

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Securities Commission of the Bahamas (SCB) licensed fund administrator

Approved Foreign Administrator by any other authority recognized by Securities Commission of the Bahamas (SCB )

    • External auditor
      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

Qualified local auditor approved by the commission or

Foreign auditor approved by the commission

  1. Asset Requirements

    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

Yes

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees

    • License application fee

Professional Fund with administrator
USD 1,300

Professional Fund with administrator (fast tracked application)
USD 2,500

Professional Fund – Self Administered
USD 1,300

Professional Fund – Self Administered (fast tracked Application)
USD 2,500

    • Annual license fee

Professional Fund with administrator
USD 1,750

Professional Fund with administrator (fast tracked application)
USD 1,750

Professional Fund – Self Administered
USD 2,000

Professional Fund – Self Administered (fast tracked Application)
USD 2,000

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
None
Quarterly obligations
None
Annual obligations
None
Other obligations

Professional funds are required to be audited annually and to file a copy of their audited financial statements with their licensor (the Commission or its investment fund administrator) within six months of the funds’ financial year end.

Tax Obligations and Other Exemptions
Requirements Description
Business Tax
None
Withholding Tax
None
Value Added Tax (VAT)
Exempted
Stamp duty Act

Property Transactions up to BS $100,000 is 2.5%

Duty on sales over BS$100,000 remained at 10%

Trades Tax Act
None
Immovable Property Transfer Restriction Act
None
Immigration Decree
None
Exchange Control Act
Exempted
Foreign Earnings Act
Exempted

Benefits of a Bahamas Professional Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment