Funds check-up - legislative changes in the BVI
Amid all the changes to the regulatory landscape of the British Virgin Islands (BVI) over the last 18 months, one change has received surprisingly little attention given its potential importance to the functionaries of BVI hedge funds. In particular, section 41(2) of the Securities and Investment Business Act 2010 (SIBA) makes it an offence for any person to act as a functionary of a BVI hedge fund unless the fund has been properly authorised by the BVI Financial Services Commission. In practical terms, this new offence creates a positive obligation on functionaries to verify that their BVI hedge fund clients have the necessary regulatory authorisations they require under BVI law. The new offence applies to any person who acts as investment manager, investment adviser, administrator, custodian or prime broker to a BVI hedge fund. In the case of a fund that is a unit trust, it also applies to the trustee of the fund.
Fund functionaries should be aware of legislative changes that require them to ensure their BVI hedge fund clients obtain the proper regulatory authorisations in the jurisdiction, says Conyers Dill’s Anton Goldstein
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