It is now possible for existing mutual funds established in the British Virgin Islands (BVI) to register and for new BVI funds to be incorporated as segregated portfolio companies (SPCs) following the coming into force of the Segregated Portfolio Companies Regulations in late December 2005.
A fund established as an SPC is able to structure itself as an umbrella fund with separate sub-funds, without the risk of creditors of one sub-fund having recourse against the assets of another sub-fund. With investment funds investing in more and more complex and diverse investments, the availability of the SPC regime is expected to be popular with existing BVI funds and managers and to provide another compelling reason for funds to be established in the world’s largest offshore corporate domicile.
