Mutual Funds Act, 1996

Summary

This is the original Mutual Funds Act, 1996 of the British Virgin Islands, which established the first statutory framework for regulating mutual funds and their managers and administrators carrying on business in or from the Territory. The Act has since been revoked and replaced by later BVI legislation, so it is included here for historical reference rather than as current law.

• Public funds: Required registration with the Governor before carrying on business in or from the Territory, with an application process, prospectus filing, accounting records and investor rights provisions (Part II).
• Private funds: Required recognition by the Minister rather than full registration, available to funds with no more than fifty investors each investing at least US$25,000, or any number of investors each investing at least US$250,000 (Part III).
• Managers and administrators: Required a licence to provide management or administration services to mutual funds in or from the Territory, unless already authorised in a recognised country or jurisdiction (Part IV).
• General regulatory machinery: Set out annual fees, certificate and licence conditions, cancellation and appeal procedures, exemption powers, confidentiality obligations, and offences and penalties (Part V).
• Administration: Created the Registrar and Deputy Registrar of Mutual Funds, required an annual report to the Minister by 30 April each year, and established a Mutual Funds Advisory Committee.

Because this Act has been revoked, none of its registration, recognition, licensing or fee obligations are currently in force; readers should consult the BVI Financial Services Commission's current mutual funds and securities and investment business legislation for applicable requirements.

Applies to

public funds, private funds, mutual fund managers, mutual fund administrators, promoters of proposed public funds

Deadlines

• 30th day of April in each year: Deadline by which the Registrar of Mutual Funds was required to deliver an annual report to the Minister (historical obligation under the now-revoked Act).
• three months from grant: The Governor's consent to register a proposed public fund was valid for three months from the date granted, renewable thereafter (historical provision under the now-revoked Act).

Related documents

• Insolvency (Amendment and Consequential Provisions) Act, 2004 amends this document