Guide To The Mutual Funds Act 1996

INTRODUCTION

Definition of Mutual Fund

The Mutual Funds Act 1996, as amended (the "Act") defines a mutual fund (see Endnote 1) as a company incorporated, a partnership formed, a unit trust organised or other similar body formed or organised under the laws of the British Virgin Islands or of any other country or jurisdiction which:

i) collects and pools investor funds for the purpose of collective investment; and

ii) issues shares (defined as shares in the share capital of a company, an interest in a mutual fund partnership and a unit in a mutual fund unit trust) that entitle the holder to receive on demand or within a specified period after demand an amount computed by reference to the value of a proportionate interest in the whole or in a part of the net assets of the company, the partnership, the unit trust or other similar body, as the case may be; and includes