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      P. O Box SP-61567
      Nassau, New Providence
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      New Providence
      The Bahamas

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  • Client Focus. Solutions Driven.
  • About Us
    • About Caystone
    • Client Leaders
    • Client Updates
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    • Governance & Business Services
    • Fund Services
    • Accounting Services
    • Fiduciary & Corporate Administration Services
    • Concierge Services
    • Private Trust Companies
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  • Contact
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  • Client Focus. Solutions Driven.
  • About Us
    • About Caystone
    • Client Leaders
    • Client Updates
  • Services
    • Governance & Business Services
    • Fund Services
    • Accounting Services
    • Fiduciary & Corporate Administration Services
    • Concierge Services
    • Private Trust Companies
    • Compliance Services
  • Contact
  • Client Focus. Solutions Driven.
  • About Us
    • About Caystone
    • Client Leaders
    • Client Updates
  • Services
    • Governance & Business Services
    • Fund Services
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    • Fiduciary & Corporate Administration Services
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    • Private Trust Companies
    • Compliance Services
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Client UpdateAugust 22, 2020

Update to The Investment Funds Act

An important update was made to our Investment Funds Act in February 2020. This act was a key element to securing confirmation from the European Union (“EU) that Bahamas structures meet the EU “Economic Substance” requirements.

While the law provided a 6 month window to implement all aspects of the law by August 31, the rollout process inclusive of the issuance of guidelines was significantly disrupted by the COVID pandemic. Arising from these constraints, a 3 month “no penalty” period has been provided, designed to enable full implementation by November 30.

As an overview, the most significant elements of the new regime are set out below:

  • All Funds must appoint an Investment Manager. Moreover, all Investment Managers (“IMs”) must register with the Securities Commission of The Bahamas (“SCB”). While every investment fund have been required to be registered with the SCB, the IMs of these funds had no obligation to register or be accountable to the SCB. This registration of the IMs is intended to ensure that the IMs fulfill obligations under the IFA. These obligations are consistent with good governance, transparency and fair treatment to investors.
  • A requirement to notify the regulator where delegation of investment management mandate is given to another company. This requirement is a key part of the implementation arising from the Economic Substance regime in The Bahamas.
  • Independence between Directors, Investment Management, Fund Administrator and Custodian is a matter within scope of the regime.
  • The Bahamas has introduced a fund type, the “EU AIFM”.

Arising from the law, we have had three key agenda items:

  • Caystone Group has ensured that it is in compliance with the independence requirements.
  • Update of the documentation for each fund to secure compliance with the requirements of the IFA.
  • Register IMs.

As it relates to the registration of IMs, all IMs must be registered with the SCB, even if registered/regulated in another jurisdiction. In addition to this, the SCB also requires that the IM provides it latest financial statements.

The deadline for registration is 30th November, 2020. We have prefilled the attached form with some information however kindly review and complete as necessary and have the form signed and returned via email.

The fees applicable to each regulation are described below:

Caystone support for IM Registration:$500.00 (per Fund)
Out-of-pocket (Securities Commission fee):$200.00 - $500.00
(IM Regulated – Non regulated)

$200.00 - $500.00
(per Fund IM Regulated – Non Regulated)
Caystone as responsible for Economic Substance filing:Waived (As part of Fund Administration fees)

 

If there are further questions, please send an email to: contact@caystone.com.

Economic Substance/Beneficial Owner UpdateNext

Additional Client Updates

  • Bahamas Attains Technical Compliance in 40 of the 40 Financial Action Task Force Recommendations
  • Caystone’s Statement on Sanctions arising from Russia-Ukraine Conflict
  • Economic Substance/Beneficial Owner Update
  • Update to The Investment Funds Act

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Goodman’s Bay Corporate Centre

P. O. Box SP-61567
West Bay Street
Nassau, New Providence
The Bahamas

Albany Financial Centre

Suite 701
South Ocean Boulevard
New Providence
The Bahamas

Contacts

The Bahamas: + 242 397 6500
Brazil: + 55 11 3198 6125
contact@caystone.com

Mexico: + 52 553 687 7104
Switzerland: + 41 43 500 4277
United Kingdom: + 44 203 051 6801
New York: + 718 362 6017

 

Caystone is regulated by the Securities Commission of The Bahamas as an Unrestricted Fund Administrator and a Financial and Corporate Service Provider.
Caystone is regulated by the Central Bank of The Bahamas to provide Private Trust Company services.

This website is for information purposes only and does not constitute an offer or solicitation of products or services where prohibited by law. It is designed to provide general information on our fiduciary services in the jurisdictions we operate, based on the laws and practices at the time of printing. This information is not intended to be exhaustive and does not constitute legal advice.

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