BVI Approved Manager Regime 2013 – January 2014 update

Last year we reported on the introduction in December 2012 of the Investment Business (Approved Manager) Regulations in the British Virgin Islands. The Regulations introduced a ‘light touch’ regulatory regime for approved managers, enabling such qualifying managers to act as the investment manager or investment advisor to:

a) funds registered under SIBA (Securities and Investment Business Act 2010);
b) closed ended funds domiciled in the BVI; and
c) certain feeder funds that feed into BVI master funds.

For a more detailed consideration of the 2012 Regulations please see our article at:
http://www.rosemont-int.com/news/28-11-2013-bvi-investment-business-approved-manager-regulations-2012/ .

The 2012 Regulations have proved to be a popular success and on the 2nd January 2014 the Investment Business (Approved Manager) (Amended) Regulations 2013 came into force with the aim of expanding the scope of the ‘light touch’ and building on the success of the earlier Regulations.

The 2013 Regulations allow an Approved Manager to manage funds from any recognised jurisdiction, providing that the jurisdiction has characteristics that are equivalent to private or professional funds in the BVI. The asset caps of the funds imposed under the 2012 Regulations of US$400 million to US$ 1 billion continue to apply unchanged. The recognised jurisdictions include the all major worldwide jurisdictions and are listed at the foot of this article.

An Approved Manager may, in certain limited circumstances, serve a fund that is not from a recognised jurisdiction. This is subject to the proviso that the fund invests all or a significant proportion of the fund assets either in a BVI qualifying fund or, in the alternative, a qualifying fund in a recognised jurisdiction.

The advantages of the Approved Manager Regime are the speed and ease of the approval process, an application is submitted with supporting documentation, but without an excessive document burden, and approval can be obtained within approximately 30days of submission. An Approved Manager, once authorised, is regulated but without excessive filing and regulatory obligations. The Regime is designed to be attractive to new managers, as well as small to medium size managers.

We consider that these amendments to the 2012 Regulations will enhance the attractiveness of the already attractive Approved Manager Regime and increase the competitive advantage of the BVI.

Recognised Jurisdictions as at 2.1.14
Argentina, Australia, Bahamas, Bermuda, Belgium, Brazil, Canada, Cayman Islands, Chile, China, Curacao, Denmark, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hong Kong,  Ireland, Isle of Man, Italy, Japan, Jersey, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Panama, Portugal, Singapore, Spain, South Africa, Sweden, Switzerland, United Kingdom and United States of America.