Weathering the Storm The Key Elements of BVI-domiciled Funds and the Advantages They Offer to Fund Managers
Christopher Simpson and Kerry Anderson
The British Virgin Islands (BVI) is the world’s second largest offshore fund domicile with close to 3,000 registered funds and growing. The global recession affected the industry, with most funds during that time looking at their balance sheet and redemption issues. In some cases, funds were taken to court by investors for a variety of reasons directly caused by the impact of the recession on some funds. That scenario is almost behind us and what we are now seeing is a resurgence in the set up of new funds. More managers have now also seen some of the benefits offered by BVI funds and have, or are ready to make the move to a BVI fund. With the updating of BVI funds legislation in 2010 through the passage of the Securities and Investment Business Act, 2010 (SIBA), the BVI is well poised to continue on this path of growth.