Form IB-E1 - Application by a Private Fund/Professional Fund for Exemption of the Requirement to Appoint a Custodian

Summary

This is Form IB-E1, the official BVI Financial Services Commission application form used by a private fund or professional fund to request exemption from the requirement to appoint a custodian, under regulation 7(2) of the Mutual Funds Regulations, 2010. It is a data-collection and declaration form rather than a rule imposing ongoing obligations, but completing and submitting it correctly is a precondition to obtaining the exemption.

• Applicant details: Identifies the fund (private or professional), its recognition or registration date or licence number, and whether it is applying alongside an initial recognition application.
• Reasons for exemption: Requires a sufficiently detailed rationale for why the fund should be exempted from appointing a custodian.
• Safekeeping arrangements: Describes current or proposed arrangements for safekeeping assets, including bank account and financial institution details, and whether the fund uses only a prime broker.
• Feeder fund and fund of funds disclosures: If applicable, requires details of the master fund, the person responsible for safekeeping the master fund's assets, and whether underlying funds maintain appropriate brokerage or custodial arrangements.
• Liquidation status: Discloses whether the applicant is in voluntary or involuntary liquidation, and if so, requires a board resolution, investor numbers, remaining asset value, anticipated completion timeframe, and redemption payout account details.
• Esoteric assets: If the fund invests in esoteric assets (e.g. real estate, private equity, structured settlements), requires naming persons responsible for maintaining investment records and related contracts.
• Signed declaration: Requires signature and declaration that the information provided is true and accurate, with a warning that false or misleading information may result in denial of the application and other action under BVI law.

The form applies specifically to private funds and professional funds seeking relief from the custodian requirement under the Mutual Funds Regulations, 2010; it does not itself set out separate deadlines or fees beyond the application process.

Key obligations

• An applicant must provide sufficiently detailed reasons justifying the request for exemption from the custodian requirement.
• An applicant must accurately describe current or proposed safekeeping arrangements and bank account details.
• An applicant that is a feeder fund must disclose the master fund and the person responsible for safekeeping its assets.
• An applicant that is a fund of funds must disclose whether underlying funds maintain appropriate brokerage or custodial arrangements and identify the person responsible for tracking investments into those funds.
• An applicant in liquidation must disclose liquidation details including a board resolution, investor numbers, remaining asset value, anticipated completion time, and redemption account information.
• An applicant investing in esoteric assets must identify persons responsible for maintaining related investment records and contracts.
• The signatory must declare that all information and documents submitted are true, accurate, and authentic.

Applies to

private funds, professional funds