The Isle of Man offers a flexible corporate and regulatory approach for investment funds, and at DQ we can advise you on a number of alternative options to suit the fund’s structure and investment activity.
For those funds which are looking to limit their regulatory requirements, they can start off as closed-ended investment companies (which do not allow ad hoc redemptions) and exempt schemes (which restrict offers to the public and have a maximum of 49 investors). Exempt schemes have limited reporting requirements to the Isle of Man Financial Supervision Commission, whilst closed-ended investment companies fall outside of regulation altogether.
For funds which will provide regulator redemptions, and will be offered to a larger number of investors than exempt schemes, fund managers can still reduce their regulatory requirements and annual licence fees by utilising one of the qualifying, specialist or regulated fund structures, suitable for funds targeting investment from institutions or HNWI’s. For funds that intend to offer to the public, the Isle of Man also offers fully authorised schemes, which qualify under the English Financial Services and Markets Act for promotion directly into the UK.
Fund managers can also take advantage of the number of corporate options available to them in the Isle of Man. In addition to the flexible dividend, distribution and reduction of capital provisions within our Companies Act 2006, funds can be established as limited partnerships, PCCs or unit trusts.