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FAQ of Anguilla mutual funds
What rights do investors have for misrepresentations made in a prospectus?
If a registered public fund publishes a prospectus or any amendment to it that contains
misrepresentations relating to any disclosures required under the ACT, a person who
purchased any shares pursuant to the prospectus or amendment to it, is deemed to have
relied on the misrepresentation and shall have specific rights. These include rescission
for the purchase or damages against the fund. However, no person is liable if he/she
proves that the purchaser bought the shares offered by the prospectus or amendment to it
with knowledge of the misrepresentation.
Who is a promoter?
A promoter means a person acting alone or in conjunction with others directly or
indirectly who takes the initiative in forming or organizing a mutual fund, but does not
include an underwriter who receives an underwriting commission without taking any part
in the founding or organizing of the mutual fund business.
What is an administrator?
An administrator is a person who for valuable consideration provides a mutual fund with
administrative services alone or together with accounting services and is entitled to
provide mutual funds such services and facilities under the laws of a recognized country
or jurisdiction. Administrators must apply to be licensed under the Act. It is an offence
to conduct the business of administrator from in or within Anguilla without a licence.
What is a manager?
A manager refers to person, who is not an employee or officer of a person licensed under
this Act who for valuable consideration provides a mutual fund with management
services alone or together with investment advice or administrative services or is entitled
to provide mutual funds with such services and facilities as provided in the laws of a
recognized country or jurisdiction. Managers, like administrators, must apply to be
licensed under the Act. It is an offence to conduct the business of manager from in or
within Anguilla without licence.
Can anyone be an administrator or manager?
No; in order to be granted a licence as an administrator or manager, the Commission must
be satisfied that the applicant is a fit and proper person to be engaged in the business
proposed. The applicant must also have available to him or her adequate knowledge,
expertise, resources, and facilities necessary for the nature and scope of the business
proposed and has appointed an auditor satisfying conditions as may be prescribed by the
Commission.
Are all managers and administrators required to appoint an auditor?
No; a manager or administrator who provides services to one private mutual fund or one
professional mutual fund and whose business is only to appoint other service providers or
to receive fees or both, is exempted from the requirement to appoint an auditor.
Can someone be both an administrator and manager?
Yes; an applicant can hold licences at the same time.
What is meant by registration?
Registration refers to the process whereby a public fund is authorized to conduct business
in or from within Anguilla. Only public funds are registered. No public fund can
conduct business in or from within Anguilla without being registered under the Act.
What are the grounds for refusing to grant registration?
The Commission will refuse to grant registration if the public fund has a name which is
undesirable or misleading; where the public fund or proposed public fund does not have a
custodian who is independent of the manager or administrator or it determines that it is
not in the public interest that registration should be granted.
What is meant by recognition?
Recognition refers to the process whereby a private or professional fund is authorized to
conduct business in or from within Anguilla. Only private and professional funds are
recognized. No private or professional fund can conduct business in or from within
Anguilla without being recognized under the Act.
What are the grounds for refusing to grant recognition?
The Commission will refuse to grant recognition if the private or professional fund has
failed to provide evidence that it is a private or professional fund and is lawfully
constituted under the laws of Anguilla; and where it determines that it is not in the
interests of the investors or in the public interest that recognition should be granted.
Do all funds need to submit annual audited financial statements?
No; only registered public funds have to provide these statements.
What are the restricted "words" under the Act?
The Commission has to give its consent for persons to use the words "fund", "mutual
fund" or "unit trust" either in English or another language, in the name, description, or
title under which that person is carrying on business in or from within Anguilla. Further,
such consent is required also where the person makes or continues to make any
representation in any advertisement, billhead, circular, letter, letterhead, notice, paper or
in any other manner that that person is carrying on business as a fund or mutual fund.
Fees to Set up Anguilla Off shore Mutual Funds
If you have more questions about Anguilla mutual funds please contact us.
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