Gibraltar Experienced Investor Funds (EIF)

Experienced Investor Funds (EIF) and private schemes (also known as private funds) are the structures of choice when setting up Gibraltar alternative investment funds. Both the EIF and the private scheme are collective investment schemes which sit outside the retail environment.

A private fund can be marketed to no more than 50 potential investors from an exclusively restricted identifiable category of persons such as friends, family or close business associates. The offer must be in respect of units that are or will be established as a private scheme that will remain as such for at least one year after the offer is made.

EIFs are targeted at investors with sufficient experience, knowledge and understanding of the investments they choose to make and its associated risks.

An EIF is a collective investment scheme which is established under the Financial Services (Collective Investment Schemes) Act 2011 and the Financial Services (Experienced Investor Funds) Regulations 2018 (EIF Regulations), and is regulated by the GFSC.

Private funds are collective investment schemes not listed on the stock exchange and can only be marketed to a maximum of 50 investors. Until recently, these funds have been substantially unregulated. However, from July 2014 these funds must be registered as a minimum requirement pursuant to the rules introduced by AIFMD.

Legal Requirements

Sr.

No

ElementRequirement(s)
Entity RequirementsThe entity making the application is Gibraltar:

  1. Limited Company
  2. PCC (Protected Cell Company)
Director’s RequirementsThe licensee will need at least 2 (two) natural person Fit and Proper Directors of any jurisdiction.
Shareholder requirements
  • Corporate shareholding is allowed and 100% foreign ownership is permitted.
Compliance OfficerThe Licensee must establish and maintain an appropriate and effective compliance function within the firm which operates independently of all operational and business line functions and senior or supervisory management.
Fund AdministratorThe Applicant must employ a fund administrator with no local requirement

Administrator of an EIF must be domiciled and regulated in Gibraltar or,

If external, be established in a jurisdiction where it is regulated in accordance with a legislative and regulatory regime that provides at least equivalent protection to the regime in Gibraltar.

The appointment of fund administrators established outside of Gibraltar requires the Commission’s consent and is also subject to the consent of the Minister with responsibility for financial services.

Fund ManagerAny licensed fund manager as approved by the GFSC.
Custodian
  • The applicant must have a custodian approved by the GFSC.
  • The Licensed custodian can be either of the below:
  1. Licensed Financial institution
  2. Licensed Trustee services provider
  3. Any other person as the authority may approve
Local OfficeYes
AuditorThe Licensee must have a Qualified local auditor or

Foreign auditor if fund is structured as a domestic company

InsuranceThe applicant must have indemnity insurance coverage or a fidelity bond acceptable to the regulator
Minimum Capital Requirements£10,000
Application Fee£ 2,500
Annual Fee£ 2,500

Ongoing Obligations

  1. License are to be renewed annually. On application for renewal of a Licence, GFSC , if satisfied that the applicant is a licensee of good standing, may grant the renewal on payment by the applicant of the annual renewal licence fee
  2. Filing of Audited Accounts: The licensee shall for the financial year beginning on the day on which it commences to carry on securities business; and for each subsequent year submit to the Commission, within ninety days after the end of the financial year, audited financial statements prepared in accordance with international accounting standards, and which contain such additional information as may be prescribed.
  3. The Licensee must maintain appropriate policies of insurance for the purpose of indemnifying such licensee against any liability that may be incurred as a result of any act or omission by the licensee or any of its officers or employees in the conduct of the licensee’s securities business.

About Valsen Fiduciaries

Valsen Fiduciaries is a licensed independent global service provider of a broad range of fiduciary, administrative, legal, corporate secretarial and support services.

    1. Company formations and Administration
    2. Assistance with Bank Account opening
    3. Collective Investment Setup and Administration
    4. Intellectual Property Registrations and Maintenance.
    5. Trusts and Foundations setup and administration
    6. Online Payment Gateway Solutions
    7. Banking Licenses and PSP, E-Money, E- Wallet Licenses
    8. Yacht and aircraft registrations.
    9. Cryptocurrency Solutions (ICO, STO, Crypto Exchanges etc)

The Valsen Advantage

  • We will advise you on the optimal legal structure for your requirements, size, expectations and circumstances. We have extensive knowledge of a wide range of securities dealer licenses in all major jurisdictions.
  • Valsen will assist to complete every form for each process in the best way we know how (Based on our many years’ experience with various regulators and service providers across the world)
  • We are very hands on in the post filing period checking with re regulator and service providers and updating you regularly. Any queries raised by the regulators and service providers during processing will be quickly synthesized by us and we shall craft the right responses to move the process forward fast.
  • We have a full in-house compliance support for all compliance requirements with the regulator and service providers

Our Contact Details

Please visit us on: www.offshorelicense-regulatory.com , www.valsen-corporate.com

OR Contact us on:

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  • Email: [email protected]