HEDGE AND MUTUAL FUNDS

Euro-Caribbean Trustees Ltd will assist our clients with establishing mutual funds or hedge funds in SVG. We will assist in writing or reviewing the prospectus, provide the directors (if required to do so), draft any ancillary agreements required, and prepare the necessary resolutions recording the activities of the fund in co with our law firm R. L. K. Roberts Law Chambers (www.rlkroberts.com).

With regard to funds, the SVG Mutual Funds Act defines three categories of investment fund: (a) Accredited (b) Private and (c) Public. The definitions for each category are as follows:

Such a fund must have a minimum subscription requirement for investors of US$ 25,000 or equivalent in any currency. There is no limit to the number of shareholders a fund may have.

Private Fund:

Such a fund must only solicit investors on a ‘private’ basis OR the number of total investors must be limited to 50. No invitations to subscribe for or purchase shares in the fund shall be generally circulated, nor shall subscriptions be solicited from members of the public.

Public Fund:

Any fund which does not fall into either category above is deemed a Public Fund. As the category suggests, a Public Fund is open to members of the public.

Accredited and Private mutual funds must apply for and be granted ‘recognition’ by the SVG regulators. In order to obtain recognition a fund must comply with all aspects of the Mutual Funds Act as it relates to the classification being applied for. In essence, to obtain recognition a fund must illustrate to the regulators, the following points:

• That the fund is structured correctly to ensure the protection of investors;Under section 61, a judgment creditor’s sole remedy against the economic interest of a member of an LLC is by way of charging order and such creditor does not have any right to obtain possession of or otherwise exercise legal or equitable remedies with respect to the property or assets of the LLC.

• That the Investment Manager/Trading Advisors are experienced and competent;

• That the Offering Memorandum for the fund complies with the Act with regard to full disclosures to investors;

• That the fund will be managed and administered in a fit and proper manner.• That the Offering Memorandum for the fund complies with the Act with regard to full disclosures to investors;

Mutual funds may be structured as simple IBC’S, Segregated Cell Companies under the IBC structure, as LLC’s, or as Unit Trusts.