This report examines why BVI is a hedge fund hotspot and how BVI Finance continues to work with managers and service providers to create and maintain a positive regulatory and administrative environment to ensure the sector continues to evolve and grow…
The 'British Virgin Islands 2019' special report comprises 12 separate articles listed below, these can be read individually or as a sequence.
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.
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.
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.
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 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.
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 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 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.
By Simon Gray, BVI Finance – A new generation of hedge fund managers are looking to make a name for themselves. But starting a fund, raising money and managing a back office can be a gruelling task even for the most talented rising stars.
Interview with Jacques Roux (pictured), Managing Director, Audit, KPMG
Since the Approved Manager Regulations were implemented in the BVI in 2012, smaller managers seeking a more simplified approval process and lighter touch regulatory framework compared to the Securities and Investment Business Act (SIBA) have really benefited.
By Michael Killourhy, Ogier – 2017 and 2018 were record setting years for Special Purpose Acquistion Company (SPAC) offerings in the United States. Strong demand continued into 2019, with SPAC IPOs crossing the 100 mark by end Q2 2019. SPACs are publicly-traded investment vehicles that raise funds via an IPO to complete a targeted acquisition (a “business combination”) within a limited time frame (18-24 months).