Introduction Of Annual Returns For BVI Investment Funds

The British Virgin Islands Financial Services Commission

("FSC") announced on 9 September 2008 the creation of a

new Annual Return regime for BVI investment funds. The new Annual

Return replaces the previously administered Mutual Funds survey

which funds have been invited to participate in since 2004.

Completion of the Annual Return is voluntary in respect of the

year ended 31 December 2007 but the FSC has stated participation

will be mandatory in respect of the year ended 31 December

2008.

The requirement to file the Annual Return applies to all funds

which are licensed under the Mutual Funds Act, 1996 that is, all

private, professional and public funds. Funds which fall outside

the scope of the Mutual Funds Act, 1996 such as closed ended

vehicles are not required to file an Annual Return.

What information must be disclosed in the Annual

Return?

The Annual Return requires each fund to report annually as to

its basic prudential and governance information and summary

financial information including details of its asset allocation.

The Annual Return does not require disclosure of any information

regarding the identity of investors or of specific investments held

by the fund. The reporting period for the Annual Return is the

calendar year regardless of the financial year operated by the

fund.

The summary financial information...