Although Juno is Gibraltar based we recognise that Gibraltar as a domicile for your fund may not always be the best solution for you. For any number of reasons, from technical issues through to personal preferences, the best solution might be a fund domiciled in another jurisdiction. With this in mind, Juno has developed links with professional contacts in Malta, Cayman Islands and the BVI, all of which offer funds where a local administrator is not mandatory. In this way, we can offer more flexible solutions for the needs of your fund, whilst still providing our normal administration services.
British Virgin Islands
The legislative structure in the BVI is attractive for hedge funds and offers a suitable level of regulation for private, professional and public funds under the Mutual Funds Act 2010.
The Act requires all investment funds to be recognised or registered with the BVI Financial Services Commission and to file annual returns. The three categories of regulated fund that are most commonly used are as follows:
- Private fund – For funds that will have no more than 50 investors or the invitation to subscribe for or purchase shares is made on a private basis. There is no requirement for audited accounts or filing with of such with the Commission.
- Professional fund – For funds only made available to professional investors and the initial investment by investors not less than US$100,000. There is no requirement for audited accounts or filing with of such with the Commission. The fund must be registered within 14 days of issuing its prospectus.
- Public fund – A Public fund must file a duly approved copy of its prospectus with the Commission before offering shares to the public. It is required to have an independent custodian and prepare audited financial statements.
The BVI Financial Services Commission require that all functionaries, including the administrator be incorporated in either the British Virgin Islands, or a “recognised jurisdiction”, which includes Gibraltar.
The Cayman Islands has long been a jurisdiction of choice for the establishment of funds. They are particularly well suited for private placement funds intended for institutional or sophisticated high net worth investors because of the freedom from investment restrictions, open architecture for fund counter-parties and varying levels of regulatory supervision from the Cayman Islands Monetary Authority (“CIMA”).
Exempted and Registered Funds in the Cayman Islands have no requirements for a local administrator, and the option of appointing an EU based and authorised administrator is often seen as an added benefit.
- Exempted funds – these do not require registration with CIMA and are closed-ended funds or open-ended funds with no more than fifteen investors (who are capable of appointing and removing the operator of the fund) and where the minimum investment is at least US$100,000.
- Registered Mutual Funds – these funds are registered with CIMA, and require a local audit. They are targeted at institutional or sophisticated high net worth investors who invest a minimum initial amount of US$100,000, or whose shares are listed on an approved stock exchange.
Malta is an EU domicile, with a varied fund structure offering which provides a Professional Investor Funds regime (“PIF”) suitable for clients wishing to set up funds for non-retail investors. There are three classes of PIF’s, aimed at various investor profiles ranging from quasi-retail to institutional investors.
The Experienced Investor PIF have many similarities with the Gibraltar EIF regime, but with the flexibility for lower investment limits. The Experienced Investors PIF is subject to investment diversification requirements and borrowing (leverage) restrictions, unlike the other two categories of PIF which are not subject to such restrictions.
For family office arrangements, there is also a Private Scheme available, which limits investors to no more than fifteen persons all of whom must be close friends or relatives of the promoter.