The closed-end fund structure consists of a business company limited by shares. A closed-end fund is different from an open-ended fund (mutual fund) in that investment units are redeemable at the discretion of the fund manager or in accordance with the terms agreed upon with the investors of the fund rather than redeemable on demand as in the case of a Mutual Fund. Closed end funds are not subject to the license and supervisory requirements of the FSC.
An unregulated fund of this type is often referred to as a Hedge Fund, a term originating from the investment strategy of spreading risk through hedging. The term Hedge Fund has become synonymous with investment vehicles for sophisticated investors and exempt from regulation rather than with vehicles applying any specific investment strategy. A Hedge Fund can be used for any type of investing and the exemption from the license and supervisory regime gives the fund manager complete freedom and flexibility when tailoring the investment strategy of the fund.
Major differences with a closed-end fund:
• The investors can redeem their shares only at the investment manager’s discretion.
• There is a fixed number shares/units available for sale.
Our BVI Closed-End Fund package includes:
(price includes BVI BC formation fee, BVI Business Company filing fee, and the registered agent/office fee)
› Registered Agent/Office (upon incorporation and annually thereafter)
› Communication/Courier/Company Seal costs› name check
› preparation of the company memorandum of association
› preparation of the company articles of association
› preparation of company registration forms
› filing with the BVI registrar of companies
› certificate of incorporation
› share certificates
› minutes of the first board meetings
› register of directors
› register of members
› company seal
› preparation of offering documents and fund agreements
› payment of first year BVI Registered Agent/Office (annual)
› payment of first year BVI Business Company Licence Fee (annual)
› courier service (1 time)
› Registered Agent/Office for a mutual fund
› BVI Business Company Licence Fee
Other service available:
› Nominated director (annual)
› Preparation of resolutions
› Prepare power of attorney
› Certificate of Incumbency
A retainer equal to 60% of the total fee is required up-front with the balance due upon presentation of the first draft of the fund documents. Payments can be made in U.S. Dollars ($). Our preferred form of payment is bank wire transfer, banking details will be provided on request. Once payment has been received in full the client questionnaire will be sent via email.
Important BVI Links
The following links will be helpful in researching the British Virgin Islands: