Isle of Man Qualifying Fund

Introduction

The Qualifying Fund is a sub-category of International schemes under Schedule 2 to the Collective Investment Schemes Act 2008, which is available only to qualifying investors who meet the investor requirements set out in the regulations.

Legal Requirements

Categories

Entity Requirements

The entity making the application is:
a) an Isle of Man Company incorporated under the Companies Act 1931
b) an Isle of Man Company incorporated under the Companies Act 2006
c) Protected Cell Company
d) Limited Liability Partnership
e) Company

Director’s Requirements

The license will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.

Shareholder requirements

• The investment dealer will need at least one shareholder.
• Corporate shareholding is allowed and 100% foreign ownership is permitted.

Compliance Officer

The License must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.

Licensed Principle

The Applicant must employ at least one individual who is licensed as a principal. The Principle must:
a) Have sufficient educational or other qualifications or experience;
b) Have sufficient authority within the company;
c) Be a fit and proper person, to supervise the business for which the company that has nominated him is licensed or is applying to be licensed

Fund Manager

Isle of Man Manager licenceholder Applicant can be of any jurisdiction.

Custodian

Regulated in the Isle of Man or in a suitable jurisdiction

Promoter

A regulated promoter must be appointed if sales to “certain persons”(1) are allowed through non regulated financial advisers

Fiduciary Custodian/Trustee Required?

Not Required

Local Office

The applicant must have premises acceptable to the authority. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.

Auditor

The License, within one month after becoming licensed, shall appoint an external auditor who is acceptable to the Commission

Insurance

The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the regulator

Minimum Capital Requirements

Not Required

Ongoing Obligations

• Licenses are to be renewed annually after the date of registration. On application for renewal of a Licence, the Isle of Man Financial Services Authority, if satisfied that the applicant is a licensee of good standing, may grant the renewal on payment by the applicant of the annual renewal Licence fee
• Filing of Audited Accounts: The licensee shall for the financial year beginning on the day on which it commences to carry on securities business; and for each subsequent year submit to the Commission, within ninety days after the end of the financial year, audited financial statements prepared in accordance with international accounting standards, and which contain such additional information as may be prescribed.
• The Licensee must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.