The Next Frontier: BVI Introduces New Fund Products

The British Virgin Islands, in continuing to establish itself as a premier offshore financial services jurisdiction, has created two new fund products to complement its very popular existing funds offering with the bold intention of remaining on the cutting edge of the financial services market. The 'incubator fund' and the 'approved fund' are two new lightly regulated fund products which are primarily aimed at start-up emerging managers and those managing funds for smaller groups of closely connected investors.

The new legislation that governs these products is the Securities and Investment Business (Incubator and Approved Funds) Regulations 2015 (the Regulations). The Regulations are made pursuant to the Securities and Investment Business (Amendment) Act 2015 which amends the Securities and Investment Business Act 2010 (SIBA). The Regulations came into force on 1 June 2015.