Two new fund products will shortly be available in the BVI. The
"incubator fund" and the "approved fund" are
both "regulatory light" products designed to appeal to
start up managers and those looking to manage a small number of
investors.
The new legislation which governs these products is the
Securities and Investment Business (Incubator and Approved Funds)
Regulations 2015 (the "Regulations"). The Regulations are
expected to be brought into force shortly.
The Incubator Fund
The incubator fund will appeal to managers who want to move
quickly and establish a track record whilst keeping set-up costs
low and without having to comply with onerous regulatory
obligations.
An incubator fund will, for a period of two years (with approval
this may be extended for a further year) be permitted to operate
with no functionaries (i.e. no administrator, custodian or
manager). There will also be no requirement to appoint an auditor
during that two/three year period provided
