Valsen Fiduciaries Funds

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BVI Public Fund

The BVI Financial Services Commission (FSC) regulates mutual funds under the segregated portfolio companies (mutual funds) (amendment) regulations, 2018. This Act sets out the guidelines pertaining to the application and licensing of mutual funds in the BVI.

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About BVI Public Fund

A public fund is a BVI open-ended fund that offers its investment shares to the general public and therefore attracts the highest degree of regulation. A public fund is unable to commence business until such time as it registered with the Financial Service Commission (FSC). Public Funds are divided into “ordinary” mutual funds sold to the general public and “selective” mutual funds sold on a selective basis through intermediaries organic nugs.

BVI Public Fund Legal Requirements

Requirements Description
  1. Applicable legislation
Mutual Funds Act, 2010

Securities and Investment Business Act 2010 (SIBA)

  1. Supervising Authority
BVI Financial Services Commission (FSC)
  1. Corporate vehicle permitted
BVI Business Company

BVI Segregated Portfolio Company

BVI Unit Trust

BVI Limited Partnership

  1. Share capital or equivalent
  • Minimum subscription
None
  • Minimum investors
None
  1. Directors / Partners / Trustees
  • Minimum number
2
  • Corporate Directors / Partners / Trustees allowed
Only Individual Directors allowed.

For a trust, Trustee must be a body Corporate.

  • Local Directors / Partners / Trustees required
Yes
  1. Fund functionaries required
  1. Custodian
  • Custodian required
No
  • Local custodian required
No
  • Eligible custodian
Yes
  1. Fund manager / Investment manager
  • Fund manager required
Yes
  • Local fund manager required
No
  • Fund manager requires to be licensed
Yes
  • Eligible fund manager
Any other person that is a Body corporate as the authority may approve who is independent of the fund custodian or administrator
  1. Fund administrator
  • Fund administrator required
Yes
  • Local fund administrator required
No
  • Eligible fund administrator
Any other person that is a body corporate as the authority may approve who is independent of the fund manager or custodian
  1. External auditor
  • External auditor required
Yes
  • Local external auditor required
No
  • Eligible external auditor
Foreign or local auditor satisfying conditions as may be prescribed 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
No
  1. Prospectus / Offering Memorandum required to be filed
Yes
  1. Eligible for listing
Yes
  1. License fees
  • License application fee
USD 350
  • Annual license fee
USD 350
  1. Estimated license processing duration
3 months

Ongoing Obligations

Requirements Description
Monthly obligations None
Quarterly obligations None
Annual obligations Submit annual audited accounts to FSA within 6 months of the financial year end.
Other obligations Written notice shall be given to the Commission within seven days after:

  • a director ceases to hold office with a public fund; or
  • a functionary ceases to act for a public fund

Tax Obligations and Other Exemptions

Requirements Description
Business Tax None. There is no income, capital gains, profit or other forms of direct taxation on corporations, regardless residence status.
Withholding Tax No withholding tax is payable on dividends and/or interest payable.
Value Added Tax (VAT) VAT is not applicable to mutual funds in its entirety.
Payroll Tax Payroll Tax is charged on actual remuneration paid, given or assessed by any employer or self-employed person, to every employee and deemed employee, plus any benefits derived by the employee, deemed employee or self-employed person as a result of his/her employment, whether paid in cash or kind. Payroll tax rates are as follows:

  • The Class 1 employer and the class 1 self-employed person pay at a rate of 10% of the tax base.
  • The Class 2 employer and the class 2 self-employed person pay at a rate of 14% of the tax base. Effective 2007 employment income up to USD 10,000 is tax free.
Stamp duty Act Instruments to which stamp duty would typically apply include share transfers, charges over and transfers of real estate. The amount of stamp duty payable on a particular instrument will depend on the nature of the instrument.
Trades Tax Act None
Immovable Property Transfer Restriction Act None
Immigration Decree None
Exchange Control Act There are no foreign exchange control restrictions
Foreign Earnings Act None

Benefits of a BVI Public Fund: