Anguilla mutual funds
A mutual fund is an investment vehicle that aggregates money from many investors to invest in stocks, bonds or other types of investment. A fund manager takes care of the investment, for a fee, which also comes from that same fund. Mutual funds are âopen endedâ, meaning new investors can join anytime they want.
The Mutual Funds Act 2004, registers and regulates mutual funds and licensing of managers and administrators doing business in or from within Anguilla.
Types of mutual funds covered by the Act:
- Private Funds: It doesn't have more than 99 members, according to its constitutional documents. The constitutional documents also specify that an invitation to subscribe or purchase shares issued by the mutual fund are not offered to the public. Exemption is given to a family trust fund as defined in the Act. There is no restriction on the amount of investment by individuals who may constitute a private fund.
- Professional Funds: These mutual fundÂ´s shares are only available to professional investors, and the initial investment is not less than $100,000 or its equivalent in any other currency. Professional investors are required to state in writing that they agree to being treated as a professional investor. There is no restriction on the number of investors who may constitute a professional fund. A mutual fund can also be qualified as a professional fund if it was performing business or engaged in an activity as a mutual fund on the date of coming into force of the Act; however, the shares of the mutual fund are, after the date of the coming into force the Act, only available for professional investors.
- Public Funds: They are neither private, nor professional funds. A public fund has a duty to publish and file a prospectus. Promoters of this kind of fund should apply for registration under the Act. All applications are made to the Commission using the appropriate form accompanied by a statement setting out the nature and scope of the business, along with the name of any other jurisdiction in which the applicant is carrying on business. Public funds must maintain account records and prepare annual audited accounts for submission to the Commission. All licenses are subject to a Code of Practice governing matters relating to the conduct of business, financial resources, handling of clients money, etc.
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