Oct/12/2020

BVI Professional Fund

BVI Professional Funds

Investors have the opportunity to invest with an incubator fund, private fund, public fund, professional fund or approved fund. Each of these are open-ended funds that require SIBA approval and support.

Professional Funds

This type of fund is designed for specifically professional investors who make minimum initial investments of at least $100,000. This can be done in US currency or it can be done to the equivalent in a different currency, but it must be deposited into a professional fund.

Professional investors are individuals who deal in property that the fund will deal with and who are worth at least $1,000,000. This amount can include their spouse and can also include their real estate investments.

What’s good about this type of fund is that business and management can be carried out for as long as 21 days before it is actually recognized by the FSC. But it does require two directors, one of which is required to be an individual person. There is also a requirement for other specific individuals including an investment manager, custodian, auditor and administrator.

The FSC also needs to be kept aware of many of the things happening within the fund, including appointment or removal of prime brokers. Finally, they must file annual returns to the FSC every year, on June 30.

Fund Structure

This type of fund can be carried out as a business company, a unit trust or a limited partnership. The unit trust is the least common but follows English trust law. This means that the trust deed offers unitholders all of the interests in the trust property. It can be used in place of companies if needed for investors.

Most BVI funds are actually companies and are carried under the Business Companies Act of 2004. Still, limited partnerships can also be used quite commonly. These will both be done through limited liability companies and open-ended investment.

Advantages of a Professional Fund

There are a number of benefits associated with professional funds. However, they do require minimum investments and they have specific requirements for the investors that are chosen to invest in them. Still, there are some benefits, such as being able to operate up to 21 days before they get their license.

It’s important that the rules be followed for this, however, which includes no more than a 14-day waiting period to file an application after starting business. You’ll also have the option to set up service providers anywhere in the world without the need for a local audit or sign-off. On top of that, everything is done fast and easily.

The Fees in BVI are quite low and the law regarding hedge funds is relatively simple and flexible. There’s even ease of insolvency laws that are straightforward for any investor. In regards to compliance culture and infrastructure the system is based on the English legal system. Overall, there’s a great deal of benefits and there’s less danger of problems with any of the regulatory financial standards.

With this type of investment process you’ll have more options for larger scale investors who are looking to turn a bigger profit in entirely different ways.

Conclusion

If you have questions concerning the formation of a BVI Professional Fund, please don’t hesitate to contact us: funds@wabashadvisors.com

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