Investment Fund license

Who may need an investment fund license?

Any businessman understands that for conducting certain types of activities a license is simply necessary. Investment activity is no exception. An investment fund license is required in most countries, especially European ones.

Any investment fund that plans to operate in Europe must obtain a license in the respective countries. At the same time, tooperate in Europe the license of an investment fund is required both for working with professional investors and for ordinary (unskilled) investors.

Investment funds can be registered in different countries, including offshore. Accordingly, the receipt of an investment fund license takes place during its registration and the license of the investment fund is issued by the financial regulator of the country where this investment fund was initially registered.

As a rule, an investment fund license obtained in one country does not give the right to conduct active marketing in other countries without additional coordination with the financial regulators of those countries. However, this does not mean a ban on working with investors from these countries.

Will you need an investment fund license for your activity?

Of course, whether or not a license of an investment fund is needed depends mostly on the jurisdiction in which the investment fund is registered and operates.

For example, in many offshore companies there are certain types of investment funds that do not require a license or simply have a special registration procedure. For example, in the Caymans, an offshore fund license is not required if it is a closed-end fund (closed-end investment fund).

Professional offshore investment funds designed to work with professional investors are often exempted from the need to obtain a license, and the procedure for their creation provides for a simple registration procedure.

However, even offshore funds that want to work with unqualified investors, i.e. to take investments from ordinary people, must receive a license. The offshore fund license is issued by the financial regulator of the country in which this offshore fund is registered. When obtaining a license for an offshore fund, it should be understood that such an investment fund must conduct its business in strict accordance with all rules.

Thus, a license for an offshore fund is a kind of guarantee for investors who want to invest in it, that the fund is controlled and will not violate the principles established by law. Due to this, the offshore fund license can be used for marketing purposes.

Applying to SBSB you can be sure that the opening of the investment fund will be quick and successful. A team of SBSB professionals will take care of all of your concerns.

For over five years we have been advising our clients in the field of corporate law, international tax planning, finance, international licensing and integrated business support in more than 40 countries.

We will be happy to assist you with creating your own offshore fund.