international
Full International Schemes
The characteristics of a full international scheme are not prescribed, the intention being to provide a flexible regulatory framework. Such schemes are not subject to any direct approval or authorisation process. However, the manager and custodian of such schemes must be regulated entities and the Isle of Man Financial Supervision Commission (the “Commission”) reviews the constitutional documents of the scheme as part of the process of granting permission to the manager to manage the scheme.
Specialist Funds
The specialist fund was launched in September 2007 and is a sub-category of the international scheme. It is only available to specialist investors who are generally institutional investors and high net worth individuals. The minimum investment is USD 100,000.
The Specialist Fund is not subject to approval in the Isle of Man.
Qualifying Funds
The qualifying fund was launched in September 2007 and is a sub-category of the international scheme. It is only available to qualifying investors who are non retail investors. The minimum subscription level is agreed between the manager of the fund and the governing body. A Qualifying fund must have a manager licensed in the Isle of Man. A licensed promoter is also required.
The Qualifying fund is not subject to approval in the Isle of Man.
Professional Investor Funds
The professional investor fund is a sub-category of the international scheme and is only available to professional investors who are generally market professionals and who have net assets in excess of USD 1 million. The minimum investment is USD 100,000.
The Professional Investor Fund is not subject to approval in the Isle of Man.
Experienced Investor Fund
The Experienced Investor Fund (“EIF”) is a sub-category of the international scheme and is subject to a form of regulation that is aimed at the “Experienced Investor”. An experienced investor is defined as a person who, in relation to any EIF, is sufficiently experienced to understand the risks associated with an investment in that fund.
The EIF is not subject to approval in the Isle of Man.
Following the launch of the Specialist and Qualifying Funds, no new EIFs may be launched. However existing EIFs may convert to a Specialist or Qualifying Fund or become one of the following types of EIF:-
- Closed EIF – closed to new business;
- Legacy EIF –minimum investment of USD 100,000 for new investors;
- Qualifying type EIF – minimum subscription as agreed by the manager and governing body.
Exempt International Schemes
Exempt international schemes are private arrangements and are not subject to regulation. They must have less than 50 investors and their constitutional documents should expressly prohibit the making of an invitation to the public to subscribe.
Overseas Fund
Overseas funds are constituted or incorporated outside the Isle of Man but are managed or administered by a licenceholder in the Isle of Man. Such schemes are unregulated schemes in the Island in that they are exempted from the legal and regulatory requirements that apply to other international schemes. Overseas funds are notified to the Commission by the licenceholder.