Valsen Fiduciaries Funds

Montserrat Private Fund

Montserrat introduced its revised Mutual Funds legislation in 2007. Under the Act, private funds are prohibited from carrying on mutual funds business or manage or administer the affairs of mutual funds in or from within Montserrat unless registered under the Act.

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About Montserrat Private Fund

Under the Mutual Funds Act 2007, a private fund is a fund in which its constitutional documents specify that it will have no more than 50 investors and that an invitation to subscribe for or purchase shares is not to be made public.

Montserrat Private Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Mutual Funds legislation in 2007

  1. Supervising Authority

Financial Service Commission

  1. Corporate vehicle permitted

State the legal form of the fund,

Company;

Partnership; or

Unit Trust;

  1. Share capital or equivalent

    • Minimum subscription

None

    • Minimum investors

None but must not exceed 50 investors

  1. Directors / Partners / Trustees

    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

No

    • Local Directors / Partners / Trustees required

No

  1. Fund functionaries required

    • Custodian

      • Custodian required

Yes

      • Local custodian required

Yes

      • Eligible custodian

A licensee bank or trust company

    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Must be a person or company licensed in Montserrat; or

Manager of mutual fund formed or organised under the laws of a recognised country or jurisdiction; or

has received written permission from the Commission to carry on business as manager of mutual funds in or from within Montserrat.

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Must be a person or company licensed in Montserrat; or

Administrator of mutual fund formed or organised under the laws of a recognised country or jurisdiction; or

Has received written permission from the Commission to carry on business as administrator of mutual funds in or from within Montserrat.

    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

The auditor acceptable to the Commission in accordance with generally accepted auditing standards

  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 2,500

    • Annual license fee

USD 5,000

  1. Estimated license processing duration

3 months

 

Ongoing Obligations

Requirements Description
Monthly obligations
None
Quarterly obligations
None
Annual obligations
Maintain such accounting records and financial statements available for examination by the Registrar or any person authorized under his hand at its principal place of business or registered office in Montserrat;
Other obligations

Notify Minister within a reasonable period of any of the following changes:

Changes in any Key Functionary in the Fund.

Change in the registered office address.

Change of its agent in Montserrat

Change in name or address of-

  • each director of the fund, if the fund is a company
  • each trustee of the fund, if the fund is a trust
  • each general partner of the fund, if the fund is a limited partnership.
  • Appointment, resignation or removal of a Director or officer
Tax Obligations and Other Exemptions
Requirements Description
Business Tax
No Business tax is payable on Mutual Funds.
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.VAT is not applicable to mutual funds in its entirety.
Stamp duty Act
Mutual funds are exempt from payment of stamp duty Tax
Trades Tax Act
Mutual funds are exempt
Immovable Property Transfer Restriction Act
Mutual funds are exempt
Immigration Decree
Mutual funds are exempt
Exchange Control Act
The provisions of the Exchange Control Act do not apply to mutual funds.
Foreign Earnings Act
The Foreign Earnings Act is not applicable to mutual funds in its entirety.

Benefits of a Montserrat Private Fund:

  • Montserrat mutual funds are exempted from specified taxes in Montserrat
  • Finely tuned regulatory regime that provides confidence in the quality of supervision while ensuring that the demands of the investment community can be met.
  • Minimum initial investment limit shall not apply in respect of an investment made by the manager, administrator, promoter or underwriter of the Private Fund