How are Mutual Funds licensed and regulated in Barbados by L136wS97


									How are Mutual Funds licensed and regulated in Barbados?

The regulation, authorization and control of mutual funds and their
managers and administrators carrying on business in, or from within
Barbados are prescribed by the Mutual Funds Act, 2002-22 and the
Mutual Funds Regulations, 2002.

A mutual fund may, upon application, be licensed to carry on business
in or from Barbados where it has applied for and has been granted a
licence under the Act, which is administered by the Barbados
Securities Commission. The Act generally makes provision for three
types of mutual fund licenses:

1.    the mutual fund licence: this is a mutual fund licensed in

2.    the exempt mutual fund licence: this is a mutual fund which
      is licensed in a foreign jurisdiction (such as Trinidad and
      Tobago)and has not suspended operation in that jurisdiction and
      has been approved by the Minister responsible for Finance in
      Barbados; and

3.    the limited investors licence: this is a mutual fund in which
      the equity interest are held not by more than 15 investors the
      majority of whom are capable of appointing or removing the
      operator of the fund and in the case where any of the investors
      is a corporation, that the corporation does not have more than 4
      beneficial owners.

A mutual fund is required to inform the Securities Commission of any
change of its registered office or its principal office, a change of its
operator; or any material change to its structure, organization or
administration within 7 days of the occurrence of such a change and to
submit to the Commission in respect of a financial year:

      a.    a statement containing the prescribed information
            respecting its activities; and
      b.    its audited accounts

within 4 months after the end of the financial year or within such
further period as the Securities Commission may allow.

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