Kinley Legal advises founders, managers, advisers and investors on matters relevant to investment funds in the Isle of Man and other jurisdictions.
Matters on which we have advised include the following:
- assisting clients intending to establish funds in determining the most appropriate jurisdiction and fund type: regulated, qualifying, specialist or exempt, open-ended or closed-ended, unit trust or investment company;
- drafting detailed offering documents, constitution and service provider agreements for qualifying and specialist (including professional) funds;
- advising a start-up fund manager in relation to company law, commercial law and financial regulatory considerations;
- preparing constitutional documents for exempt ‘family and friends’ funds to meet the investment needs of a private family office;
- providing ongoing advice to the managers of international regulated funds on matters including changes to offering and constitutional documents, amendments to redemption rules, the setting up of side-pockets and sub-funds, conversion into Protected Cell Companies (PCCs); and
- advising on the winding up and de-registration of funds.
The Isle of Man offers a flexible variety of investment fund structures, ranging from simple co-investment arrangements to sophisticated, fully regulated funds. Many private investors favour the Exempt fund, particularly for collective family investment programmes with fewer than 50 investors and no need to seek further outside investment, which is a cost-effective structure with no requirement for regulatory permission or oversight.
The majority of Isle of Man investment funds are of an intermediate type, either a Specialist fund for investors with a minimum investment of more than USD100,000, or a Qualifying fund for qualifying investors; these fund types require regulatory registration but are not subject to a requirement for initial regulatory consent.
Lastly, the Isle of Man’s most sophisticated offering is of Regulated funds, which offer a high degree of regulatory oversight and are potentially suitable for both institutional and retail investors, and Authorised funds, which add further investor protection such as a compensation scheme.