Approved and Incubator Funds

Tailored for smaller and start-up B.V.I. regulated entities the Approved and Incubator Regulations of 2015 offer a flexible and fast approach to carry out regulated financial services activities.

Qualified entities do not require SIBA licensing and are exempt from the Regulatory Code.

The Commission endeavours to process these applications within two (2) business days. This can only be achieved if the application is complete and the persons involved qualify.

The key is in setting out the directors academic and work experience in a detailed timeline and a consecutive curriculum vitae. Full detail of work done must be set out.

Approved Funds

Approved Funds are limited to a maximum amount of One Hundred Million US Dollar (USD100,000,000.00) and twenty (20) investors. Investor minimums are Twenty Thousand US Dollar (USD20,000.00) each. A regulated Administrator is required and full details must be included in the Application.

Incubator Funds

Incubator Funds are limited to 2 years in duration (an extra year may be applied for), Twenty Million US Dollar (USD20,000,000.00) investment value, do not require an Administrator and have the same Twenty Thousand US Dollar (USD20,000.00) minimum investment.

Both are investments of a risky nature and considered high risk investments for sophisticated investors only.

Neither needs audit although they can be if desired.

Representatives

Directors and representatives are an important aspect of the BVI hedge fund formation. The approved and incubator funds must designate an authorized representative in the BVI. They must maintain a board of directors with at least two directors at all times, one of whom must be a person. As part of the application process, any person appointed to serve as director must submit a resume.

We can provide the Authorised Representative through our licensed associated company Offshore Investments Representatives, Ltd.

Documentation & Disclosures

The application form to be submitted for the approval of either of the approved or incubator funds for the BVI hedge fund formation should include the following documents:

• Fund’s constitutional documents
• Summary and description of the fund’s investment policy and strategy and valuation policy
• Written warning to the investors
• Details of investor asset security

The fund’s offering document. If an offering document is not planned, the summary and the warning in the specified format must be submitted as separate documents which will then be issued to the investors.

ABM has the skill and experience to advise, draft and submit such applications. Both require a Fund Representative. This service is offered by our regulated entity Offshore Investment Representatives, Ltd. with license number SIBA/AR/16/1104.

Conversion of Funds

The fund should inform the BVI FSC in case the number of investors or the value of investments held by any form of funds goes beyond the stated limits for a two-month period in a row. When informing the BVI, the fund investors must submit an application:

• For conversion of incubator fund into a private, professional, or approved fund;
• For conversion of approved funds into a private or professional fund.

Private and Professional Funds and SIBA Licensing

ABM Corporate Services, Ltd. has the ability, knowledge and experience through its employees and consultants to provide the full range of licensing under advice and drafting SIBA. We have attended on advising Private and Professional Funds and SIBA licensed Managers and Traders. Our consultants can provide expert advice on all aspects of Fund and SIBA law.

BVI Hedge Fund Formation Correct Fees

The BVI hedge fund formation process also requires the submission of a correct fee. The correct fee amount is currently set at US$1,500. It must be submitted along with the fund approval application that refers to as an Approved Fund or an Incubator Fund. the investors also need to pay an annual renewal fee of $1,000 for both types of funds.

Fund Representative services are offered through Offshore Investment Representatives, Ltd.

Fund Administration

For all Funds, except the Incubator Fund, a Fund Administrator is needed. We offer this services through our licensed entity Associated Business Management, Ltd.