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Currently, there are 101 Approved Investment Managers licensed in the BVI, based on figures published by the Islands' financial regulator, the BVI Financial Services Commission (as of 30 September 2015).
Factor in that the BVI now has two new fund products (the BVI Incubator Fund and BVI Approved Fund) and these are positive times.
"It's exciting to be able to provide something new to clients. It shows that the jurisdiction is working to support fund managers in different ways," says Mara Spencer (pictured), Managing Director of ACE Fund Services, an independent BVI fund administrator. "The Approved and Incubator funds had long
Regulatory and investor pressure have drastically altered the hedge fund industry in recent years. With managers increasingly looking for fund administrators to provide more middle-office and value-added services, whilst at the same time squeezing them on fees, the situation has become a Gordian Knot. Administrators must find ways to remain relevant, attract new clients, and continue to build revenues at a time when everyone is adjusting to FATCA, AIFMD, and shortly Common Reporting Standards.
Folio is one of the BVI's most recognised independent fund administrators and whilst the group is glad that the BVI is evolving its fund product range,
When the British Virgin Islands introduced the Approved Manager regime at the end of 2012 it was heralded as a significant step forward. With start-up managers facing dual pressures of investor preference for regulatory oversight, and higher barriers to entry (from a cost perspective), there was no satisfactory option. The new regime changed that. Managers suddenly had the ability to enjoy lighter touch regulatory oversight that was more in line with their needs, and had an alternative to becoming SIBA-licensed on day one.
This was the first sign of the BVI actively responding to meet a genuine need of start-up
The challenge for any aspiring hedge fund start-up has been well documented in recent times. Year after year, the barriers to entry rise. Five years ago, the onset of global regulation prompted industry commentators to suggest that the break-even point of a hedge fund was USD100 million. One could argue that on an annualised basis, that break-even figure has risen by USD100 million. Not all will agree, but there is a growing consensus that to cope with the sheer breadth of regulation, today's start-up manager needs to be targeting Day 1 AUM of around USD500 million.
That's a scary figure,
Verras Professional Services Limited has been approved as a Listings Member of the Channel Islands Securities Exchange (CISE).
Verras Professional Services Limited holds a Category 1 and Category 2 membership of the CISE, enabling the firm to arrange and sponsor the listing of investment funds and debt securities on the CISE. Through its group affiliations, the firm is also able to arrange legal, fiduciary and marketing services for Channel Islands-based and international clients.
Verras Professional Services Limited is affiliated to MJ Hudson, The Alternative Asset Law Firm. MJ Hudson has offices in Jersey and Guernsey as well as London,
The European Commission must prioritise non-bank finance and deeper capital markets as part of its regulatory review, according to the Alternative Investment Management Association (AIMA).
AIMA made the comments in its response to the European Commission’s Call for Evidence on the EU regulatory framework for financial services, published in September 2015.
In its response, AIMA explains that capital market financing is more long-term and transparent, encourages greater innovation and discipline, which leads to better allocation of resources and economic growth.
However, regulatory barriers still prevent capital markets and non-banking finance from developing further in the EU.
AIMA
Deloitte has launched Prisma, which is designed to help investment managers, banks and insurance firms to navigate complex global marketing regulation and tax rules. As a managed service, Prisma delivers reports for multiple regulatory and investor requirements.
Mark Ward, head of investment management at Deloitte UK, says: “A recent paper from the World Economic Forum recognised the challenge of regulatory cost pressures on asset managers. It also noted that global regulation has meant significant resource has been used to ensure compliance processes are up to date and properly monitored at any given time.
“Investment managers are subject to
CTAs are currently holding a net short position in commodities and developed market equities, and have increased their net long exposure to fixed income, in what signifies a clear, deflationary position. This defensive posture would suggest that managers are expecting further downward pressure on inflation expectations (to do with many factors, the most important being China’s slow down) and is a sign that CTAs think that further deflationary risks lie ahead.
This is a somewhat sombre, downbeat outlook for early 2016. The opening weeks of the year have been some of the worst on record for global stock markets. Over
Franklin Square Capital Partners, a manager of business development companies (BDCs), has originated a unitranche term loan for PSKW, LLC (PSKW), a developer and marketer of co-pay assistance (CPA) programs for pharmaceutical drugs.
The financing supported the acquisition of PSKW by Genstar Capital (Genstar), a San Francisco, CA-based private equity investment firm focused on actively investing in high-quality companies for more than 20 years. In addition, the financing also supported PSKW's add-on acquisition of PDR Network, LLC, a provider of behaviour-based prescription management programs.
The financing was provided by FS Investment Corporation (NYSE: FSIC), FS Investment Corporation II (FSIC
Omni Partners has held the final close of its second secured lending fund, Omni Secured Lending Fund II (OSL II), with additional commitments of USD34 million, leaving total vintage II commitments at USD240 million.
OSL II provides its underlying investors with exposure to short-term loans secured against UK residential and commercial properties. Since inception in April 2015 the fund has delivered a net IRR of 11.1 per cent
OSL II enforces strict lending requirements: all loans, which vary in duration from 6 to 18 months, are asset backed (thus helping to minimise losses) and have a maximum Loan-to-Value (LTV)
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