Funds in the British Virgin Islands

As per the changes recently initiated by the FSMA, crowdfunding platforms in the Virgin Islands must ensure compliance with a new requirement. From now on, they are to apply for a Class F license to finance B2B, P2B & P2P activities.

Operation of mutual funds in the Virgin Islands is overseen by the FSC. Please note that establishing a closed-ended fund in the Virgin Islands doesn’t require any registration.

Funds in this jurisdiction are divided into 3 types:

• state;
• private;
• professional.

Registering a private fund in the Virgin Islands requires:

• ensuring that the number of investors doesn’t exceed a certain limit (fifty);
• refraining from selling shares to multiple investors or 3rd parties.

Funds of this type can only be purchased by individuals:

• involved in buying & selling identical property which accounts for the majority of assets owned by a fund; 
• whose capital exceeds $1 mln.

Complying with the FSC registration criteria requires:

• providing evidence of company registration in the Virgin Islands;
• submitting a filled out application; 
• confirming a fund type.

Establishing professional or private funds requires the appointment of custodians (1), managers (1) & directors (2; may be non-residents).

2 more types have recently been introduced:

• incubator;
• approved.

The criteria for establishing an incubator fund in the Virgin Islands are as follows: 

• investing no less than twenty thousand dollars; 
• having no less than $20 mln in net assets;
• having no fewer than twenty investors.

Setting up an approved fund requires: 

• having no less than $100 mln in net assets;
• having no fewer than twenty investors.

Commencement of operation is possible after the regulator has received & processed a filled out application form (normally takes 48 hours).