Simple and flexible in content, the BVI’s mutual fund
legislation was developed in consultation with the private sector and
differentiates between a full range of mutual fund products and the
finance firms which operate them, applying an appropriate level of
regulation to each sector.
The main classifications are as follows:
- Public funds – which are divided into
“ordinary” mutual funds sold to the general public and “selective”
public funds sold on a selective basis through intermediaries;
- Private funds – which are sold to less than 50 investors or offered for sale on a private basis;
- Professional funds – which are sold to market professionals or individuals with net worth over $1 million;
- Managers and administrators of mutual funds.
BVI mutual funds legislation is flexible and innovative and sets
quality benchmarks designed to protect the interest of investors,
finance firms and the jurisdiction.
The Act embraces the policy
of low-interference in the design or operation of mutual funds and
contains basic requirements that strike the right balance between
international regulatory standards of investor protection, commercial
freedom and cost efficiency.
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