TYPE OF FUNDS - Collective Investment schemes may be created in TCI either by incorporating a mutual fund company or establishing a unit trust.
LAWS - Mutual funds/open ended investment companies are governed by the Companies Ordinance 1981, as amended. Unit trusts are governed by the general laws of equity and trusts.
Unit trusts are governed by their trust deed rather than by company law. There are no minimum capital requirements. They are however subject to Financial Services Commission (FSC) supervision in the same way as mutual funds.
MANAGERS AND TRUSTEES - There are no rules defining who may act as the manager of a fund in TCI. A company which acts as trustee must have a trust licence under the Trustees (Licensing) Ordinance 1992. There are no legal restrictions on the fees which may be charged by managers or trustees.
INVESTMENT RESTRICTIONS - Generally restrictions are not imposed on the type of investment which a fund may make. Rather the emphasis is on demonstrating the managers expertise in the area of investment selected. Regulation is concentrated on the approval of promoters and their advisors on the establishment of the fund with subsequent monitoring of the fund.
BORROWING - There are no legal restrictions on the borrowing powers of funds in TCI although they may be contained in the memorandum and articles of association, or trust agreement.
FUND OWNERSHIP - There are no restrictions on the percentage of units which any person or group of persons may hold in the fund. However funds will frequently specify restrictions with regard to certain classes of persons (eg US persons because of the potential tax consequences of the fund being considered a US corporation).
ACCOUNTS OR PROSPECTUS - A fund is not obliged to publish accounts in a manner that makes them available to the public but it is obliged to produce a prospectus which requires prior approval from the supervisory authority.
SUPERVISION - The supervisory authority in TCI is the Financial Services Commission (FSC).
CONFIDENTIALITY - The Confidential Relationships Ordinance of 1979 makes it an offence to make use of confidential information for the benefit of anyone but the Principal.
FUND STRUCTURE - Funds of funds are permitted in TCI as are umbrella funds.
OVERSEAS MARKETING - Designated territory status under the UK Financial Services Act 1976 has not been sought by TCI. The Turks & Caicos Islands does not have any double tax agreements with other jurisdictions. There is no direct taxation in TCI.
NEW LEGISLATION - The Financial Services Commission is reviewing the introduction, during the course of 1997, of a stand alone Mutual Funds Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
LAWS - Mutual funds/open ended investment companies are governed by the Companies Ordinance 1981, as amended. Unit trusts are governed by the general laws of equity and trusts.
Unit trusts are governed by their trust deed rather than by company law. There are no minimum capital requirements. They are however subject to Financial Services Commission (FSC) supervision in the same way as mutual funds.
MANAGERS AND TRUSTEES - There are no rules defining who may act as the manager of a fund in TCI. A company which acts as trustee must have a trust licence under the Trustees (Licensing) Ordinance 1992. There are no legal restrictions on the fees which may be charged by managers or trustees.
INVESTMENT RESTRICTIONS - Generally restrictions are not imposed on the type of investment which a fund may make. Rather the emphasis is on demonstrating the managers expertise in the area of investment selected. Regulation is concentrated on the approval of promoters and their advisors on the establishment of the fund with subsequent monitoring of the fund.
BORROWING - There are no legal restrictions on the borrowing powers of funds in TCI although they may be contained in the memorandum and articles of association, or trust agreement.
FUND OWNERSHIP - There are no restrictions on the percentage of units which any person or group of persons may hold in the fund. However funds will frequently specify restrictions with regard to certain classes of persons (eg US persons because of the potential tax consequences of the fund being considered a US corporation).
ACCOUNTS OR PROSPECTUS - A fund is not obliged to publish accounts in a manner that makes them available to the public but it is obliged to produce a prospectus which requires prior approval from the supervisory authority.
SUPERVISION - The supervisory authority in TCI is the Financial Services Commission (FSC).
CONFIDENTIALITY - The Confidential Relationships Ordinance of 1979 makes it an offence to make use of confidential information for the benefit of anyone but the Principal.
FUND STRUCTURE - Funds of funds are permitted in TCI as are umbrella funds.
OVERSEAS MARKETING - Designated territory status under the UK Financial Services Act 1976 has not been sought by TCI. The Turks & Caicos Islands does not have any double tax agreements with other jurisdictions. There is no direct taxation in TCI.
NEW LEGISLATION - The Financial Services Commission is reviewing the introduction, during the course of 1997, of a stand alone Mutual Funds Law.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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