The Mutual Funds Act 1996 was brought into force with effect from 2 January 1998 to regulate mutual funds, their managers and administrators that carry on their business either in or from within the Territory. The Act covers funds which are domiciled in the British Virgin Islands that operate elsewhere and funds which are domiciled elsewhere that are sold in the British Virgin Islands.
Type Of Funds
The Mutual Funds Act defines a mutual fund as a legal vehicle organised under the laws of the British Virgin Islands or of any other country or jurisdiction that ‘collects and pools funds for the purpose of collective investment’. It is an entity that issues shares or similar interests, ‘that entitle the holder to receive on demand or within a specified period after demand and amount computed by reference to the value of a proportionate interest in the whole or part of the net assets of the legal vehicle’. The Act only applies to open-ended funds (those which stand ready to redeem their
