funds in the isle of man
The Isle of Man funds sector has grown rapidly in recent years and as at 30/9/08 funds under administration totalled USD 52.2 billion. This has been largely due to a number of developments introduced in 2003; the removal of VAT on funds vehicles, zero rating for corporation tax for fund managers/administrators and the end of dual regulation for funds not domiciled in the Isle of Man.
Growth has come from additional investment into existing funds as well as the incorporation of new funds on the Isle of Man. In addition, a more recent area of growth has been that of closed ended funds seeking listings on AIM, an area in which Galileo Fund Services Limited has been particularly active.
In September 2007 a new funds regime was launched with the introduction of the new Specialist Fund, the new Qualifying Fund and transitional/retention arrangements for existing Experienced Investor Funds.
FUND STRUCTURES
Fund structures can take the form of companies (open ended or closed ended), trusts or limited partnerships. Investors can participate through the holding of shares, debt securities and units. Which structure is most appropriate will depend on factors such as the type of investment being made, the jurisdiction in which they will be made and the taxation treatment of the investors targeted by the fund. Funds administered in the Isle of Man can either be incorporated in the Isle of Man or in other jurisdictions.