BVI continues to introduce positive regulatory developments

There have been number of positive developments for the funds industry in the BVI. One is the creation of an AIFMD opt-in regime for the BVI, called the Securities and Investment Business (AIFMD) Regulations, as the BVI looks to seek approval from the European regulator, ESMA, for third country equivalence and introduces into the BVI an AIFMD equivalent regime.
 
"Secondly, there is fairly advanced work on updating the BVI's Partnership Act. This statute is due a refresh and expected to be finalized during 2017. It will enhance the BVI's partnership regime at a time when other jurisdictions are also looking at updating their equivalent regimes," says Jersey-based Simon Schilder, Partner at Ogier and head of the firm's BVI Investment Funds Practice.
 
He continues: "There are also enhancements in the pipelines which are being made to the BVI's Segregated Portfolio Company Regulations, the main change being to open up the product to accommodate a broader range of opportunities than currently exist. At present, one is only able to use SPCs for open-ended funds and for insurance companies. The new enhancements will expand the types of structures that can utilize a segregated portfolio company ("SPC") structure, significantly to enable closed-ended funds to utilize SPC structures. This is good news as we are continuing to see interest from managers to utilize SPC structures, as managers like the legal ring fencing capability that they offer".
 
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