By Christopher Simpson & Kerry Anderson – News outlets, including The Guardian and CNBC, were reporting and market watchers were opining in early 2019 that a slowing world economy forebodes a major global economic shift – possibly another recession. By mid-August, the concern found renewed attention when analysts pointed to an inverted yield curve in the United States Government bond market as a historical precursor to a recession.
Legal & Regulation
By Ian Montgomery, Partner, Collas Crill – A new generation of offshore incorporations: Succession planning for offshore incorporations, particularly those where companies are controlled by one individual, needs careful consideration. Problems can arise where a significant proportion of shares in a BVI company are held by a foreign-domiciled deceased individual with a foreign will or no valid will at all, particularly where the deceased was the sole director of the company.
By Simon Gray, BVI Finance – The crypto hedge fund is a new phenomenon, created by entrepreneurial investment managers looking to take advantage of the huge gains that cryptocurrencies have experienced over the last three years.
By Paul Waldron (pictured), Harneys BVI – The BVI approved manager product, first introduced in 2012, continues to be a popular choice with start-up and emerging managers all over the world. It was introduced as an alternative to the full investment management licence available under the Securities and Investment Business Act, 2010 (SIBA) in the BVI, which remains a robust product ideally suited to institutional managers.
Discipline is one of the key traits of any successful fund manager – sticking to the core investment strategy and avoiding style drift. And in some respects, the same is true of offshore jurisdictions.
By Simon Gray, BVI Finance – While the popularity of the British Virgin Islands (BVI) as a centre for hedge funds is testament to the ease and cost-effectiveness of establishing funds in the jurisdiction, the quality and sophistication of its legislative, regulatory and judicial framework is also a significant reason for managers choosing to set up their funds in the BVI.
The theme of digitalisation took centre stage at the annual Meet the Regulator Forum held by the BVI’s financial regulator, the Financial Services Commission (‘FSC’) this July. During the forum, Deputy Managing Director, Corporate Services of FSC, Jennifer Potter-Questelles emphasised the importance of embracing digitalisation, stating that “digitalisation is our ticket” and that as the FSC continues to innovate, so the industry is encouraged to do the same at all levels of their organisations.
With close to 1,500 registered funds, the British Virgin Islands (BVI) is a leading offshore domicile with hedge fund managers from all over the world choosing the jurisdiction to set up and manage their businesses.
SEC Chairman says Dodd-Frank Act whistleblower program is ‘invaluable component’ in tackling securities fraud
The Chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, has backed the Dodd-Frank Act’s whistleblower reward law, saying that the whistleblower program is an “invaluable component” to the Commission’s “enforcement efforts.”
Harneys: Best Offshore Law Firm – Laws in several financial jurisdictions, such as Luxembourg, BVI, Cayman Islands and Cyprus, are constantly changing. To ensure law firms uphold best practice at all times they require a combination of a strong team, robust communication, systems and practices. In addition, crucial investment in technology can help enhance a firm’s service offering further.