Mutual Funds
Montserrat introduced its revised Mutual Funds legislation in 2007. Under the Act public funds, private funds or professional funds are prohibited from carrying on mutual funds business or manage or administer the affairs of mutual funds in or from within Montserrat unless registered under the Act.
The types of mutual funds that can be licensed under the Act are:
Public fund - A fund whose shares are offered to the public at large;
Private fund - A fund which constitutional documents specify that it will have no more than 50 investors and that an invitation to subscribe for or purchase shares is not to be made public;
Professional fund - A fund which shares are made available only to professional investors and the initial investment in which, in respect of each of the persons constituting a major of such investors, is not less than United States dollars $100,000 or its equivalent in any other currency.
It is a requirement of the Act that managers and/or administrators of mutual funds must be licensed by the Commission, who has discretion to y under the Act to exempt a person from this provision if it is satisfied that the applicant will not be managing or administering more than one specified mutual fund.
Only applicants considered fit and proper will be granted licences and required to submit the following information:
- In respect of an application for registration of public fund, a statement setting the nature and scope of the business to be carried on including the name of any other country or jurisdiction where the application is carrying on or intends to carry on business;
- application fee as prescribed by Regulations;
- certified copies of the instruments by which the applicant is constituted;
- the address of the applicant’s place of business and its address for service in Montserrat;
- the name and address of a person in Montserrat authorised to represent the applicant.
In considering an application for registration or recognition of a fund, or for a licence under the Act, the Commission may review and investigate the—
- validity of the documents submitted by the applicant;
- financial condition and history of the applicant, including its owners and directors;
- nature and reputation of the business of the applicant, including its owners and directors;
- legal and management structure of the applicant;
- experience of the person or persons who are to constitute its management;
- adequacy of its financial structure;
- business plan, which should include; the applicant’s proposed fund description, marketing and operational plans, including policies and procedures to monitor and control major risk areas and 3 year financial projections covering investments, income and expenditure;
- (references supplied by the owners, directors and trustees of the applicant;
- certificate of compliance of the supervisor in any jurisdiction where the fund may presently be registered or offered.