Valsen Fiduciaries Funds

St. Vincent Public 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 Public 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 Public Fund Legal Requirements

Requirements

Description

  1. Applicable legislation

Mutual Funds Act, 1997

Mutual Funds (Amendment) Act 1998

  1. Supervising Authority

Financial Service Authority

  1. Corporate vehicle permitted

State the legal form of the fund, any registered institution in St. Vincent i.e.

Company;

Partnership; or

Unit Trust;

  1. Share capital or equivalent

    • Minimum subscription

None

    • Minimum investors

None

  1. Directors / Partners / Trustees

    • 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

The custodian maybe an affiliate of the fund manager or administrator. there is no requirement that the custodian or any sub-custodian of a public mutual fund registered under the act be located or have a place of business in the state or that the activities of such custodian or sub-custodian be required to hold any license or regulation in the state under the act in order to act as a custodian for a mutual fund.
    • Fund manager / Investment Adviser

      • Fund manager required

Yes

      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

A fund manager who is a resident or domiciled in Saint Vincent and the Grenadine A fund manager who is licensed and approved under the laws of a recognised Country or Jurisdiction
    • Fund administrator

      • Fund administrator required

Yes

      • Local fund administrator required

No

      • Eligible fund administrator

A fund administrator who is a resident or domiciled in Saint Vincent and the Grenadine A Fund administrator who is licensed and approved under the laws of a recognised Country or Jurisdiction A person who has received written permission from the Authority to carry on business as an administrator of mutual funds in or from within the State
    • External auditor

      • External auditor required

Yes

      • Local external auditor required

No

      • Eligible external auditor

A person entitled to practise as a public accountant in St. Vincent;

A person recognized by the Authority as an auditor;

  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 500

    • Annual license fee

USD 600

  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 Public 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.