With the introduction of BVI’s Securities and Investment Business (Amendment) Act (SIBA) since December 2019, all closed-ended funds incorporated or registered in the jurisdiction would likely fall within the scope for “Private Investment Funds” and must comply to this new regulation within the transition period by 1st July.
It's critical time
As stated in our previous notice, to minimize the risk of penalties or being forced to cease operations, existing private investment funds should comply with the requirements by 1 July 2020. For new private investment funds, you must apply for an official recognition from BVI’s Financial Service Commission within 14 days of starting your operation.
In a scenario where you missed the deadline then hurry up because this may lead to significant penalties up to US$75,000.
What should you do now?
We highly recommend a professional assessment of your fund’s current position in accordance with the Act and regulations. This will be the first step and after you have obtained the necessary recognition, including the ongoing obligations for Representatives, Directorships, Financial Statements…
If you also operates funds in other jurisdiction like Cayman Island, you could check out our updates regarding the expanded scope for private funds.