Important Legislative Facts
International standards for the solid and stable legal structure
The Regulatory Authority - Financial Services Authority (F.S.A.) - was created by Parliament to institute a new system to manage, direct control and supervise the international financial services industry in St. Vincent. Its role is clearly defined by the governing statute – The Saint Vincent and the Grenadines Offshore Finance Authority Act, 1996. The business of the Authority is under the direction of a board of directors.
Mutual funds are regulated by the Mutual Funds Act, 1997 as amended by the Mutual Funds (Amendment) Act 1998, with Regulations issued in 1999. There are essentially two categories of fund licenses, namely a private and accredited fund license and a public fund license.
The legal structure that can form the basis of a St. Vincent mutual fund includes an incorporated company, a partnership or a unit trust. Additionally, it can include an umbrella type fund. Open ended, closed ended and integral funds are allowed.
To incorporate an SVG International Business Company (IBC), the constitutional documents need not be complex. There are two possible classes of shares: Non-participating, voting shares, one or more of which would be held by the fund manager, as well as participating, non-voting, redeemable shares for issuance to fund participants.
As far as managers are concerned, they are required to apply to the Authority for a license to carry on business as managers. The Act provides that a natural person, any mutual fund, company, trusts or trustee may apply for a license to carry on business as a manager. Applicants must show evidence that they have, or have available to them, expertise and resources necessary to carry out the business proposed. The applicant must meet standard fit and proper person requirements.
The competence and character of managers is seen as paramount to the efficient operation of the Mutual Fund and the integrity of the jurisdiction. Accordingly, the Authority requires that licenses to carry on business as managers are issued only to fit and proper persons.
CAIAC International Ltd.
Trust House
112 Bonadie Street
P.O.Box 613, Kingstown
St. Vincent and the Grenadines
