Valsen Fiduciaries Funds

St. Vincent Private Fund

Mutual funds are regulated by the Mutual Funds Act, 1997 as amended by the Mutual Funds (Amendment) Act 1998, with Regulations issued in 1999. The Act provides for the licensing of both domestic and international mutual funds.

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About St. Vincent Private Fund

A Private fund is a mutual fund where the constitutional documents of which specify that it will have no more than fifty investors.
The constitutional documents of which specify the making of an invitation to subscribe for or purchase shares issued by the mutual fund is to be made on a private basis, which shall include-

  1. An invitation made to specified persons and is not calculated to result in shares becoming available to other persons or to a large number of investors, or
  2. By reason of a private or business connection between the person making the invitation and the investor; or
  3. Which is designated as a private or accredited fund by the regulations;

St. Vincent Private Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Vanuatu Mutual Fund Laws of 2005

  1. Supervising Authority

Financial Service Commission

  1. Corporate vehicle permitted

  • A company incorporated in Vanuatu or in a recognized jurisdiction.

  • A limited partnership registered in Vanuatu or in a recognized jurisdiction.

  • A unit trust registered in Vanuatu or in a recognized jurisdiction

  1. Share capital or equivalent

    • Minimum subscription

None

    • Minimum investors

None

  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

No

      • Eligible custodian

Licensed/Approved Custodian

    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

No

      • Eligible fund manager

Licensed Fund manager

    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

Licensed fund administrator

    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

Qualified auditor approved by the Vanuatu FSC

  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 250

    • Annual license fee

USD 1,000

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
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 SVG;
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 SVG

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
Mutual funds are exempt from business tax.
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.
Stamp duty Act
Mutual funds are exempt from payment of stamp duty Tax
Trades Tax Act
Mutual funds are exempted
Immovable Property Transfer Restriction Act
Mutual funds are exempted
Immigration Decree
Mutual funds are exempted
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 St. Vincent Private Fund:

  • Minimum formality and speedy approval procedures, which allows funds to be created quickly, once the structure, investment criteria and prospectus have been finalized;
  • No exchange controls or other restrictions on the movement of funds; and
  • Favorable tax regime.