Mutual Funds in The British Virgin Islands are regulated under law and Securities and Investment Business Act, 2010. A BVI Investment Fund License can be issued for three types of mutual funds: A public fund, a private fund, or a professional fund. There are certain exemptions for funds registered in exempted jurisdictions that can register as foreign funds. For businesses that are seeking services to the general public, it is recommended that they obtain the public fund license.
The first step for obtaining a BVI Investment Fund License is to register a local BVI Business Company or a Limited Partnership or Unit Trust.
In most cases, a BVI Business Company is the preferred form of incorporation. The formal application for a license has to be made to the British Virgin Islands Financial Services Commission. Before applying for a license, an Investment Fund must have an investment manager, an administrator, a custodian, and an auditor. The investment managers must be licensed under the act. The applicant also has to prepare a prospectus for the fund for the application process. It is also required to have an authorized representative in the British Virgin Islands. The fee for an application for a license is $1000. After completion of the application process, the Financial Services Commission will issue a certificate of registration.