BVI Incubator And Approved Funds – When And How To Convert

In 2015, the Financial Services Commission (FSC) of the British Virgin Islands (BVI) introduced two new fund regimes to provide an efficient route for start-up managers to establish a track record and for smaller funds with friends and family money to establish open ended funds, being the Incubator Fund regime and the Approved Fund regime respectively. Given their nature, both regimes contain hard-wired provisions providing for those fund types to be converted into the more established fund categories offered by the BVI, once certain trigger events occur. The new fund categories have proved popular with many new managers and, thanks to their growing asset bases, many of these managers are now reaching the threshold limits for conversion.