Facts About St. Vincent and the Grenadines Mutual Funds

St. Vincent based mutual funds are created as an incorporated company, a partnership, or a trust unit. These may include an umbrella type fund. Three types of funds are allowed; they are open ended, closed ended and integral funds.

Mutual funds in St. Vincent are licensed as private and accredited funds or public funds. A public fund offers its shares to the general public for subscription or purchase. Private and accredited funds issue shares to accredited investors who have a net worth of one million and invest a minimum of 25,000 US dollars. Private funds have fewer than fifty investors or issue private shares.

It is necessary for public funds to keep financial statements and accounting records. If the fund will sell shares to residents, the Grenadines International Financial Services Authority requires an offering document synopsis. These funds have no requirements for minimum subscription limits or capital adequacy.

Managers and administrators of mutual funds in St. Vincent must receive a license from the Grenadines International Financial Services Authority to conduct business. Standard fit and proper requirements must be met. The jurisdiction’s reputation depends on the character and capability of managers and administrators and the effective operation of their fund. Expertise, resources, or access to such must be demonstrated by prospective fund managers and administrators.

A license may be obtained by a company, fund, trust, trustee, or natural person to act as a manager or administrator. The Grenadines International Financial Services Authority accepts all applications to operate a private or public fund, to the attention of the Registrar of Mutual Funds.

The Mutual Funds Act of 1997 allows for domestic and offshore mutual fund licensing. The Act was amended by the Mutual Funds (Amendment) Act of 1998, with Regulations issued in 1999. It regulates both private and public fund licenses.