Exploring the Funds Hub
Exploring the Funds Hub is a podcast series that delves into the world of offshore funds, focusing on the BVI and Cayman. Each episode provides analysis and expert commentary from leading minds in the field, demystifying legal jargon and complex terminology. The podcast is produced by Harneys, an international law firm.
Episodes
Duties and obligations of a director of a Cayman Islands fund
This guide provides an overview of the powers, duties and obligations of a director of an exempted company incorporated under the Companies Act of the Cayman Islands (Companies Act) which is registered with the Cayman Islands Monetary Authority (CIMA) as a fund (Fund).
This guide is limited to those Funds registered with CIMA under section 4(3) or 4(4)(a) of the Mutual Funds Act (a Mutual
Data Protection for Cayman Islands investment funds
The Cayman Islands Data Protection Act (the DP Act) governs how a data controller may process, use and retain personal data.
Anyone who falls within the definition of a "data controller" (such as a Cayman Islands investment fund) must now comply with eight data protection principles in relation to any personal data processed by the data controller. Where a data controller engages a third
The roles and responsibilities of the AML Officers of Financial Service Providers
This guide looks at the roles and responsibilities of the nominated officers of financial service providers whose job it is to look out for and report suspicious activity and who oversee the compliance function and ensure that adequate systems and controls are in place to comply with the Anti-Money Laundering Regulations.
Money laundering is the process by which the proceeds of crime are
Private Funds in the Cayman Islands
The Cayman Islands is the leading jurisdiction for the offshore investment funds industry due to its combination of flexible and appropriate regulation, an approachable and effective regulator, professional service provider expertise, high reputation among investors and a tax neutral regime.
Investment funds established in the Cayman Islands fall into two broad categories: open-ended fund
The Funds Download - PRC securities access in 2026, from market entry channels to next generation ETF products
Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in.
Visit the Funds Download podcast page to catch up on all the Funds Download episodes.
If you're considering establishing a fund in the Cayman Islands, Luxembourg, or the British Virgin Islands, visit our Funds Hub for guidance.
PRC securities access in 2026, from market entry channels to next generation ETF products
Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the list presented and click subscribe or follow once logged in.
Visit the Funds Download podcast page to catch up on all the Funds Download episodes.
If you're considering establishing a fund in the Cayman Islands, Luxembourg, or the British Virgin Islands, visit our Funds Hub for guidance.
SFDR Article 6 funds: meaning, scope and market practice
What is an SFDR Article 6 fund?
Where are SFDR Article 6 funds commonly established?
How Article 6 differs from SFDR Articles 8 and 9
Interaction between SFDR and non-EU fund structures
How Harneys can help
The Sustainable Finance Disclosure Regulation (SFDR) is one of the most consequential pieces of EU financial regulation to emerge in recent years. It establishes a classification framework for financial products based on their sustainability characteristics, dividing them broadly into three categories under Articles 6, 8 and 9.
While much of the market's attention has focused on the highe
AIFMD explained: scope, thresholds, exemptions and compliance
The Alternative Investment Fund Managers Directive (AIFMD) is the cornerstone of EU regulation for managers of non-UCITS investment funds.
It determines which fund managers require authorisation, sets asset thresholds that trigger full regulatory obligations, and establishes the framework for marketing alternative investment funds to EU investors. It also created a passport allowing AIFMs
Cayman Islands investment funds and hedge funds explained
What are Cayman Islands investment funds?
Key features of Cayman Islands funds
Benefits of investing in Cayman Islands funds
How to set up a fund in the Cayman Islands
How Cayman Islands funds compare to other fund jurisdictions
Role of CIMA in regulating Cayman Islands mutual funds
Typical US manager use cases and common master-feeder structures
How Harneys can help
The Cayman Islands is the world's leading domicile for hedge funds and alternative investment vehicles. Its combination of regulatory pragmatism, tax neutrality, legal certainty and deep service-provider infrastructure makes it the jurisdiction of choice for managers launching funds that accept institutional and sophisticated investor capital.
This guide explains the principal fund struct
Establishing an Incubator or Approved Fund in the British Virgin Islands
These extremely popular and flexible funds are governed by the Securities and Investment Business (Incubator and Approved Funds) Regulations, Revised Edition 2020, as amended (the Regulations) and the Incubator and Approved Funds Guidelines. The British Virgin Islands (BVI) has often been described as the "home" of the emerging manager and these two fund products further reinforce that me
Continuing obligations for BVI private investment funds
Fund policies and arrangements
Maintenance of records and financial statements
Anti-money laundering obligations
Obligations under FATCA and CRS?
Beneficial ownership regime
A PIF is required to maintain a valuation policy setting out the applicable procedures for the valuation of fund property, the preparation of reports on the valuation and setting out the mechanisms for sharing valuation information with investors (Valuation Policy). A PIF must ensure that the person appointed as its valuation "appointed person" values fund property in accordance with the
Guide to the British Virgin Islands approved manager regime (BVI)
This guide provides an overview of the British Virgin Islands' Approved Manager regime. The regime came into effect on 10 December 2012 with the Investment Business (Approved Managers) Regulations, Revised Edition 2020 (the Regulations) and the Approved Investment Managers Guidelines (the Guidelines). It introduces a less onerous regulatory regime for BVI domiciled investment managers and
Data protection for investment funds domiciled in the British Virgin Islands
The Virgin Islands Data Protection Act 2021 (the Act) is now in force. The Act imposes a number of obligations upon investment funds in relation to the processing of personal data that they will inevitably collect as part of the investor onboarding procedure.
In order to ensure compliance with the Act, investment funds should:
Provide investors with a privacy notice
Update their offering
The Funds Download - CayLux funds: Parallel funds without parallel headaches (Part II)
In this episode, our Partner Stéphane Karolczuk and Managing Director Danny Howell from FundSight explore the third-party AIFM model, its role in supporting non-EU asset managers, and the key challenges it solves. They discuss the AIFM's core responsibilities in portfolio and risk management, the delegation versus advisory models, and fund sponsor preferences in Asia. The conversation als
Luxembourg's Enhanced Carried Interest Regime: A new era for fund managers
Why the reform was necessary
Two categories of carried interest
Expanded eligibility
Structuring flexibility
Practical next steps
As of 1 January 2026, Luxembourg has introduced a modernised and permanent tax regime for carried interest, positioning itself as one of the most competitive jurisdictions in Europe for alternative investment fund professionals. This briefing summarises the key features of the new regime and what it means for fund managers, directors, advisors and other industry participants.
The previous
Le nouveau régime de carried interest luxembourgeois: une nouvelle ère pour les gestionnaires de fonds
Depuis le 1er janvier 2026, le Grand-Duché de Luxembourg a dispose d'un nouveau régime fiscal applicable aux carried interest, confortant ainsi sa position de place financière de premier plan au sein de l'Union Européenne pour les acteurs institutionnels du secteur des fonds d'investissement alternatifs. La présente note a vocation à présenter de manière synthétique les caractéristiques s
Introduction to automatic exchange of information for Cayman Islands investment funds
This guide provides a high level summary of the main obligations for Cayman Islands investment funds under Cayman Islands automatic exchange of information (AEOI) legislation.
Over recent years governments around the world have agreed international standards for the automatic sharing of financial account information between global fiscal authorities, with the aim of reducing tax evasion.
Continuing obligations of a Cayman Islands Registered Mutual Fund
This guide sets out the continuing obligations under Cayman Islands law of an open-ended fund registered with the Cayman Islands Monetary Authority (CIMA) under section 4(3) or 4(4)(a) of the Mutual Funds Act (Mutual Funds Act).
Part A of this guide sets out the ongoing requirements under the Mutual Funds Act as well the various FATCA and CRS requirements, director registration obligation
Continuing obligations of a Cayman Islands registered private fund
This guide sets out the continuing obligations under Cayman Islands law of a closed-ended fund registered with the Cayman Islands Monetary Authority (CIMA) under the Private Funds Act (Private Funds Act).
Part A of this guide covers the ongoing obligations of a private fund that is registered under the Private Funds Act, as well the various FATCA and CRS requirements, and anti-money laund
Tokenised funds in the Cayman Islands
Last week, the Cayman Islands welcomed an influx of professionals in the digital assets space for its inaugural Cayman Crypto Week. As a jurisdiction at the forefront of innovative structuring for the digital assets space, this event was testament to the strength of the offering and experience of the professionals based here, and the increasing institutionalisation of crypto.
Tokenised fu
The Funds Download - Unpacking Luxembourg's new carry regime
In this episode of Funds Hub, Vanessa Molloy and Pierre Luc-Wolff discuss Luxembourg's new carried interest tax regime. They explain the two categories now available, contractual carry and participation carry, and explore who can benefit, including employees, partners, directors, and advisors.
Click here to subscribe to the Funds Download podcast. Choose your preferred platform from the l
The Funds Download - Cayman–Luxembourg funds: Parallel funds without parallel headaches (Part I)
In this first episode of our new podcast series, our Global Head of Financial Services, Maggie Kwok, and Partner Stéphane Karolczuk explore why managers targeting European investors avoid relying on reverse solicitation and instead turn to national private placement regimes (NPPRs) where available, or choose to establish an AIFMD compliant Luxembourg fund alongside their Cayman structure.
Jurisdictional comparison British Virgin Islands, Cayman Islands and Luxembourg Investment Funds
The following table shows the similarities and differences between the BVI, Cayman and Luxembourg Investment Funds across 27 different areas.
Please reach out to the authors to find out more.
Offshore solutions for emerging fund managers in the Middle East
Emerging fund managers in the Middle East—particularly those targeting sub-US$50 million in assets under management —face critical decisions when launching their first fund. While the region's domestic markets are maturing, and offer a compelling alternative in certain circumstances, for first time managers selecting an offshore jurisdiction may be the better choice. The Cayman Islands an
Adding an offshore vehicle to your fund structure
Ready to launch your fund?
Jump straight into our streamlined process by completing our intuitive questionnaire, designed to help you make informed choices about your offshore fund.
Get started
Get started
Private equity funds investing in property
I regularly act for residential and commercial property investors and those who lend to them and I also have a (probably) slightly unhealthy interest in Rightmove's sold property prices. What better credentials do I need?
With a real estate property magnate in the White House and the increase in property investment generally, the real estate sector is ripe for international private equity
The BVI and Cayman Islands are tax-neutral jurisdictions. What does this mean for your fund?
Primarily, it means that BVI and Cayman companies are not subject to corporate taxation on income, capital gains or share transfers. Instead, the BVI and Cayman governments raise revenue through other means such as income taxes on resident individuals (in the BVI), real estate taxes, sales and import duties and, in relation to corporate vehicles, through incorporation and licence fees. In
The Hong Kong OFC. Maybe, Maybe Not?
But will the OFC and proposed tax changes really entice Hong Kong based hedge fund managers to set up funds in Hong Kong?
Much of the talk of the "advantage" for a Hong Kong manager in setting up an OFC over a Cayman domiciled fund relates solely to a requirement for dealing only with the Securities and Futures Commission (SFC) and not also the Cayman Islands Monetary Authority (CIMA).
Th
Offshore fund vehicles - A transparent guide to making the right choice to maximise your fund's potential
One of the most common scenarios we encounter is a US-based manager who initially establishes a domestic fund to attract US taxable investors. With the performance going in the right direction, the manager begins to think about US tax-exempt investors, such as charities, pension funds and university endowments, as well as investors based outside of the US, who like the track record and wa
It would be harsh to judge fund manager performance this year
Here is a way to start an article like no other; what a fantastic year 2020 has been. The obituary of the hedge fund industry has been written many times, but for some, it was written in indelible ink in 2008 following the financial crisis. Commentators blamed the industry for its part in the global collapse, notwithstanding the fact that a huge majority of fund vehicles during that time
Offshore fund vehicles - A transparent guide to making the right choice to maximise your fund's potential
One of the most common scenarios we encounter is a US-based manager who initially establishes a domestic fund to attract US taxable investors. With the performance going in the right direction, the manager begins to think about US tax-exempt investors, such as charities, pension funds and university endowments, as well as investors based outside of the US, who like the track record and wa
Funds market in China: divergence in an age of convergence
The market for US dollar (USD)-denominated funds in Greater China has undergone rapid transformation. Professional services providers have been grappling with the impact of a flurry of new laws and regulations, while fund managers have suddenly found themselves overwhelmed by choice. This has led some to question whether market convergence has finally led to the creation of a level playin
Something has happened and we need to suspend NAV calculations and redemptions. What next?
It seems to have fallen upon me to talk about all the things that can go wrong with your fund! As it happens, suspending NAV calculations, subscriptions and redemptions is not the end of the world that it was once considered. If you keep in mind a few key considerations, chances are you will survive this challenge.
Suspensions: The post-2008 context
Prior to September 2008, suspensions we
The opportunity for ESG funds in 2021
Whilst there is clearly a cacophony of different issues for him to tackle, it did remind me of this excellent article in Reuters back in October which was already tracking the moves being made in the investment funds industry to continue the meteoric rise of ESG investment strategies.
For those that are very late to the party, ESG stands for environmental, social and governance and the st
Establishing a Closed-Ended Fund in the BVI
Are you thinking of setting up a closed-ended investment fund in the BVI? This document provides an overview of the closed-ended funds industry in the BVI and why the BVI is such an attractive jurisdiction for private equity, venture capital and other closed-ended fund managers. We explain the regulatory regime in the BVI, the fund structures available and how we can support you from the
Luxembourg: Modernisation of the securitisation law
On 9 February 2022, the Luxembourg Chamber of Deputies (Chambre des Députés), adopted the law modernising the Luxembourg law of 2 March 2004 on securitisation, as amended (the New Securitisation Law). The New Securitisation Law enhances legal certainty and flexibility of the Luxembourg securitisation regime, while ensuring and increasing effective protection for investors.
The New Securit
Continuing obligations for BVI incubator funds
Reporting and financial statements
An incubator fund is required to prepare and submit the following to the FSC:
Financial statements, which do not need to be audited but are required to be approved or signed by a director or the general partner of the fund, within six months of the end of the financial year to which they relate
A semi-annual return, no later than 31 January and 31 July c
The opportunity for ESG funds in 2021
Whilst there is clearly a cacophony of different issues for him to tackle, it did remind me of this excellent article in Reuters back in October which was already tracking the moves being made in the investment funds industry to continue the meteoric rise of ESG investment strategies.
For those that are very late to the party, ESG stands for environmental, social and governance and the st
Tax amnesty heralds increased demand for Offshore Funds in the LATAM region
After a highly educational trip down to Buenos Aires at the end of last year, I couldn't help but be encapsulated by everything that was going on in Argentina. It absolutely felt like a country that was finally moving in the right direction and the Tax Amnesty was a large part of that. On that basis, I took the time out to interview the head of our Montevideo Office, Horacio Woycik to gau
Tax amnesty heralds increased demand for Offshore Funds in the LATAM region
After a highly educational trip down to Buenos Aires at the end of last year, I couldn't help but be encapsulated by everything that was going on in Argentina. It absolutely felt like a country that was finally moving in the right direction and the Tax Amnesty was a large part of that. On that basis, I took the time out to interview the head of our Montevideo Office, Horacio Woycik to gau
Adding an offshore vehicle to your fund structure
Ready to launch your fund?
Jump straight into our streamlined process by completing our intuitive questionnaire, designed to help you make informed choices about your offshore fund.
Get started
Get started
It would be harsh to judge fund manager performance this year
Here is a way to start an article like no other; what a fantastic year 2020 has been. The obituary of the hedge fund industry has been written many times, but for some, it was written in indelible ink in 2008 following the financial crisis. Commentators blamed the industry for its part in the global collapse, notwithstanding the fact that a huge majority of fund vehicles during that time
The Hong Kong OFC. Maybe, Maybe Not?
But will the OFC and proposed tax changes really entice Hong Kong based hedge fund managers to set up funds in Hong Kong?
Much of the talk of the "advantage" for a Hong Kong manager in setting up an OFC over a Cayman domiciled fund relates solely to a requirement for dealing only with the Securities and Futures Commission (SFC) and not also the Cayman Islands Monetary Authority (CIMA).
Th
Mutual funds in the Cayman Islands
The Cayman Islands is the leading jurisdiction for the offshore investment funds industry due to its combination of flexible and appropriate regulation, an approachable and effective regulator, professional service provider expertise, high reputation among investors and a tax neutral fiscal regime.
Investment funds established in the Cayman Islands fall into two broad categories: open-end
Mutual funds in the Cayman Islands
The Cayman Islands is the leading jurisdiction for the offshore investment funds industry due to its combination of flexible and appropriate regulation, an approachable and effective regulator, professional service provider expertise, high reputation among investors and a tax neutral fiscal regime.
Investment funds established in the Cayman Islands fall into two broad categories: open-end
Introduction to automatic exchange of information for BVI Investment Funds
This guide provides a high level summary of the main obligations for BVI investment funds under BVI automatic exchange of information (AEOI) legislation.
The legislative framework
The BVI Government is a signatory to:
A Model 1B intergovernmental agreement with the United States (the IGA) which provides the framework for the implementation of the US Foreign Account Tax Compliance Act (FAT
Establishing a Hedge Fund in the BVI
The BVI benefits from a diverse offering of hedge fund products suited to everyone from the start-up manager setting up an incubator fund to established institutional fund managers with billions under management. Its pragmatic flexibility over the twenty-five years of prudent regulation has actually been a large driver for the popularity it has generated amongst the global investment fund
Ongoing obligations of Approved Managers (BVI)
Submission of annual returns
Renewal fee
Payment of Registry fees
Preparation and submission of financial statements
Directors and authorised representative
Anti-money laundering/Countering the financing of terrorism
Record keeping
Notification of changes
Notification of material or significant matters
Delegation of relevant business functions
Notification of excess assets under management
Ceasing to qualify as an Approved Manager and new relevant business
Provision
What to do and when?
Regulation 16/Guideline 6.4
An Approved Manager must file an annual return with the Financial Services Commission (the Commission) no later than 31 January each year.
The annual return must be in the prescribed form and must contain:
1. A statement that the Approved Manager is not in breach of the requirements of the Regulations
2. A confirmation that each d
Establishing a Closed-Ended Fund in the BVI
Are you thinking of setting up a closed-ended investment fund in the BVI? This document provides an overview of the closed-ended funds industry in the BVI and why the BVI is such an attractive jurisdiction for private equity, venture capital and other closed-ended fund managers. We explain the regulatory regime in the BVI, the fund structures available and how we can support you from the
Continuing obligations for Private and Professional Funds (BVI)
Maintenance of records and financial statements
Fund policies and arrangements
Anti-money laundering obligations
Obligations under FATCA and CRS?
A private or professional fund must maintain records that are sufficient to show and explain its transactions, to enable its financial position to be determined with reasonable accuracy at any time, to enable it to prepare financial statements and make returns and, if applicable, to enable its financial statements to be audited.
A private or professional fund must prepare financial statem
Continuing obligations for BVI approved funds
Reporting and financial statements
An approved fund is required to prepare and submit the following to the FSC:
Financial statements, which do not need to be audited but are required to be approved or signed by a director or the
general partner of the fund, within six months of the end of the financial year to which they relate.
An annual return, no later than 31 January containing the fo
Continuing obligations for BVI incubator funds
Reporting and financial statements
Anti-money laundering obligations
Fund policies and arrangements
Obligations under FATCA and CRS
An incubator fund is required to prepare and submit the following to the FSC:
Financial statements, which do not need to be audited but are required to be approved or signed by a director or the general partner of the fund, within six months of the end of the financial year to which they relate
A semi-annual return, no later than 31 January and 31 July containing the following information
Thank you
Your enquiry has been received and someone from our team will be in touch shortly.
Jurisdictional comparison British Virgin Islands, Cayman Islands and Luxembourg Investment Funds
The following table shows the similarities and differences between the BVI, Cayman and Luxembourg Investment Funds across 27 different areas.
Please reach out to the authors to find out more.
Luxembourg: Modernisation of the securitisation law
On 9 February 2022, the Luxembourg Chamber of Deputies (Chambre des Députés), adopted the law modernising the Luxembourg law of 2 March 2004 on securitisation, as amended (the New Securitisation Law). The New Securitisation Law enhances legal certainty and flexibility of the Luxembourg securitisation regime, while ensuring and increasing effective protection for investors.
The New Securit
Key benefits of using BVI structures
Companies incorporated in the BVI are, by most measures, the most popular offshore holding structure in the world. Whilst offshore vehicles are used for a wide variety of different purposes globally, there are a number of common factors which feed into the success of the BVI product. Whilst the most popular BVI vehicles are companies, BVI trusts and partnerships are also increasing in pop
Key benefits of using BVI structures
Companies incorporated in the BVI are, by most measures, the most popular offshore holding structure in the world. Whilst offshore vehicles are used for a wide variety of different purposes globally, there are a number of common factors which feed into the success of the BVI product. Whilst the most popular BVI vehicles are companies, BVI trusts and partnerships are also increasing in pop
Content request - Offshore Funds Hub
Harney Westwood & Riegels International, Harney Westwood & Riegels (BVI) LP, Harney Westwood & Riegels (Cayman) LLP, Harney Westwood & Riegels (UK) LLP, Harney Westwood & Riegels (Hong Kong), Harney Westwood & Riegels Singapore LLP, Aristodemou Loizides Yiolitis LLC (practising as Harneys), Harney Westwood & Riegels SARL, Harneys Bermuda Limited, and each of their subsidiaries (collective
The Funds Download - Accessing the Asia market
There was an uptake in open-ended funds being launched in Q1. This was driven by fund managers based in Hong Kong and Japan, who were looking to take advantage of volatility in the secondary market. At the same time, we identified a drop in deal flow and closings, partially due to investors being unable to conduct on-site due diligence due to COVID-19, as well as uncertainty surrounding v
The opportunity for ESG funds in 2021
Whilst there is clearly a cacophony of different issues for him to tackle, it did remind me of this excellent article in Reuters back in October which was already tracking the moves being made in the investment funds industry to continue the meteoric rise of ESG investment strategies.
For those that are very late to the party, ESG stands for environmental, social and governance and the st
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