Mauritius to Host Second Regional Ministerial Conference on Piracy

The Second Regional Ministerial Conference on Piracy will be held in Mauritius on 7 October 2010, in collaboration with the Common Market for Eastern and Southern Africa (COMESA) and the Indian Ocean Commission (IOC).

The Conference will aim at building on the momentum created by previous meetings to address the scourge of piracy. It will also discuss on a comprehensive multilateral approach to fight piracy based on an Action Plan with short, medium and long term measures.

Ministers from countries of the region, the High Representative of the European Union (EU) and Vice-President of the European Commission, Baroness Catherine Margaret Ashton, as well as representatives of international and regional organisations, including the United Nations, the International Maritime Organisation, the African Union, the Intergovernmental Authority on Development, the Indian Ocean Naval Symposium, the EU-Led Naval Force and SADC, will attend the Conference.

Piracy, particularly off the coast of Somalia and in the Indian Ocean, has become an international problem which adversely impacts on economies. Piracy has polarised attention since the beginning of 2009 though Mauritius has not so far been directly affected. However, the risks remain given that the area of operations by pirates has been continuously expanding from the Gulf of Aden and the Somali Basin towards the borders of Mauritius’ Exclusive Economic Zone (EEZ).

Measures taken by Mauritius to counter piracy include an increased surveillance of the maritime zone north of the EEZ and the signature in March 2010 of a Memorandum of Understanding prepared by the International Maritime Organisation, commonly known as the Djibouti Code of Conduct which makes provision for the repression of piracy and armed robbery against ships in the Western Indian Ocean.

Moreover, Mauritius, along with other East African States, signed in November 2009 a Political Declaration for the setting up of an appropriate framework for the improvement of cooperation at regional level among East African States to address international threats such as organised crime, illicit trafficking and terrorism with the assistance from the United Nations Office on Drugs and Crime.

Shadow Banking and Financial Regulation

Morgan Ricks

Harvard Law School; U.S. Treasury Department

Columbia Law and Economics Working Paper No. 370

Abstract:

The so-called “shadow banking” system arose over recent decades and achieved full bloom just prior to the recent financial crisis. That system proved unstable. And the shadow banking system was the central focus of the government’s emergency policy response to the crisis. Drawing on existing theory, this article argues that maturity transformation - the financing of longer-term financial assets with short-term (money-market) liabilities - is inherently unstable, and that this instability generates externalities. Consequently, government intervention may be warranted on grounds of economic efficiency. The article examines the efficiency characteristics of three potential approaches to policy intervention, which may be used alone or in combination: (i) ex ante risk constraints; (ii) ex post liquidity support; and (iii) insurance for short-term creditors. It shows that, under plausible assumptions, an insurance regime (supplemented with ex ante risk constraints to counteract the effects of moral hazard) is efficiency-maximizing. The proposed insurance regime would (i) make short-term liability insurance available to financial firms whose assets fall beneath a specified risk (volatility) threshold; and (ii) disallow financial firms whose assets exceed that threshold (and firms that are eligible for, but decline to participate in, the insurance regime) from funding themselves in the money markets. The article proposes functional criteria for establishing the efficiency-maximizing risk threshold.

Download

Working Group on Foreign lnvestment in lndia

With a view to rationalising the present arrangements relating to portfolio investments by Foreign lnstitutional lnvestors (Flls) / Non Resident lndians (NRls), Foreign Venture Capital lnvestor (FVCI) and Private Equity entities etc., the Government set up a working group to look at various types of foreign fund flows, which take advantage of arbitrage across the respective stand-alone regulations and also make recommendations to the Government. The working group consisted of members from the Government of lndia, SEBI and private sector.

The Working Group submitted its report to the Government of lndia on 30th July 2010. The same has been sent to the financial sector regulators for their comments/remarks. However, in order to achieve wider consultation, the report has been put on the website of this Ministry and comments on the same are invited by 8th October 2010. Comments may be sent by email to am.bajaj@nic.in and shefali.dhingra@nic.in

Mauritius Considers Starting Foreign-Exchange Futures, Bank Governor Says

Mauritius may introduce foreign-exchange futures contracts to complement swaps to boost competition, central bank Governor Rundheersing Bheenick said.

Link to Bloomberg article

Mauritius: The gateway for foreign investors entering India

Foreign funds investing through Mauritius pay no tax. Neither local nor overseas investors pay any tax to the Indian government if listed stocks are sold after a year of purchase.

Mauritius: The gateway for foreign investors entering India

Bank of Mauritius signs MoU with Competition Commission of Mauritius

The Bank of Mauritius (the Bank) has, on 26 August 2010, signed a Memorandum of Understanding (MoU) with the Competition Commission of Mauritius (CCM) which sets out the framework of their co-operation in the common pursuit to promote and maintain a fair, competitive, efficient and sound financial environment in Mauritius.

The Bank and the CCM recognise the importance of mutual consultation regarding issues relevant to competition in the financial system and reaffirm their commitment to conduct their regulatory responsibilities in the public interest.

The signing of the MoU is a significant step toward promoting mutual assistance between the Bank and the CCM. The MoU aims at enhancing co-operation and coordination in cases of anti-competitive behaviour where the Bank and CCM have overlapping powers and also facilitates the treatment of cases of anti-competitive behaviour within the banking sector.

The Bank and the CCM also recognise the importance of sharing information as well as the need to minimise the duplication of activity and to improve understanding of their respective roles.

In his address, Mr Rundheersing Bheenick, Governor of the Bank of Mauritius stated that "as a central bank we need to keep our wards, namely banks and other deposit taking institutions, in a fairly competitive mode for the benefit of consumers. We need competition but competition within limits.” Governor Bheenick added that the Bank is willing to share its responsibility and cooperate with the CCM. He highlighted the special nature of banking, which is a sector that must be approached in a very prudential manner because of systemic risks.

Mr Rajiv Servansingh, Acting Chairman of the CCM, on his part, stated that “the Competition Act actually makes it an obligation for the Competition Commission to sign similar MoU’s with sectoral regulators.” He further reaffirmed the intention of the CCM to collaborate with the Bank in the field of banking and its willingness to bring the expertise it collects over competition issues as a complement to the work that the Bank is already doing in the supervision of banking institutions.

This MoU is the fifth in a series of MoU’s which aim at strengthening and facilitating co-operation between the Bank and other institutions and agencies in Mauritius. The Bank has already entered into MoU’s with the Financial Services Commission, the Central Statistics Office, the Financial Intelligence Unit and the Mauritius Revenue Authority.

The Bank remains committed in enhancing its network of co-operation with other counterpart institutions which have regulatory functions in different parts of the Mauritian economy.

Mauritius: Minister announces reduction of Internet Tariffs

At the opening ceremony of the 17th edition of Infotech yesterday at the Swami Vivekananda International Convention Centre, Pailles, the Minister of Information and Communication Technology, Mr T. Pillay Chedumbrum, announced a reduction in Internet tariffs by the end of December 2010.

The Minister stated that the legislation that governs the activities of the Information and Communication Technologies Authority (ICTA), which is the national regulator for the ICT sector and Postal Services, will be reviewed accordingly. This will enable the ICTA to reconsider the affordability of Internet tariffs as it deems necessary. Presently, reduction in Internet prices can only be applied if all regulators call for a decrease in the cost of Internet services.

Infotech is an annual major ICT event, organised by the National Computer Board (NCB), that aims at creating awareness on emerging technologies and providing business opportunities in the ICT sector. It provides information on developments and achievements in the sector and promotes local talents, expertise and know-how. The theme chosen for 2010 is Intelligent Mauritius, in line with government’s programme to convert Mauritius into a regional ICT hub with full Broadband Island wide Connectivity and to narrow the digital divide.

Infotech 2010, scheduled from 26 to 29 August, has registered a record number of 58 business participants for the ICT Exhibition. This year’s edition features for the first time a Small and Medium Enterprises (SMEs) stand to enable entrepreneurs and potential small investors to take stock of facilities available to support and encourage their commercial ventures. There is also the display of several ICT applications and other technology for effective business and individual solutions. Infotech 2010 also comprises the usual shopping zone, product demos, conferences by exhibitors, gaming zone, the ICT Career Fair and the BPO demo space.

Speaking at the opening ceremony, both the Executive Director and the Chairman of the NCB, Mr D. Faugoo and Mr S. Ramgoolam, indicated that the Government Online Centre (GOC), the key infrastructure that enables e-government and acts as an IT infrastructure service provider for government institutions, would be revamped to make it a reference for government online centres in the region. To address new challenges, its infrastructure would be reviewed while the underline technology behind GOC and its relative sites would be rejuvenated to accommodate applications that facilitate interactive information sharing, user-centred design and collaboration over the World Wide Web.

Moreover, in an endeavour to promote an ICT culture and develop an ICT literate nation, the initiative of setting up computer clubs with broadband internet access would be extended to 150 social and welfare as well as day care centres across the island. Currently, only 39 such centres benefit from those facilities. The project would be implemented by the NCB with the collaboration of the Mauritius Telecom Foundation under the Corporate Social Responsibility contributions. In the same line, the Foundation is providing a new cyber caravan to the NCB to make IT facilities available throughout the island.

Fill the glass to the brim

Analysis of the tax implications of UCITS IV and the impact for funds operating cross-border.

As part of its drive to create a single European market for investors, the European Union has produced a series of directives, collectively called the Undertakings for Collective Investments in Transferable Securities (UCITS), which together seek to develop a pan-European regulatory framework governing the sale of a collective investments product. The intention is that local laws should be amended to bring them in line with the various UCITS provisions, creating a harmonized market within the EU.

In cooperation with the European Fund Administration Asset Management Association (EFAMA), KPMG member firms across Europe have been studying UCITS IV to establish whether it works across different tax jurisdictions without adversely affecting administrative operations, the fund or the investor. This report is a summary of KPMG’s findings.

Mauritius: Stakeholders’ views sought on Draft Asset Recovery Bill

A consultative working session on the Draft Asset Recovery Bill was held this morning at the Conference Room of the Attorney General’s Office in Port Louis.

The Draft Asset Recovery bill makes provision for criminal asset recovery based on conviction as well as for civil asset recovery where there has been no criminal trial or no conviction. The Office of the Attorney General, with the technical assistance of consultants from the International Monetary Fund (IMF) and of Sir Victor Glover, Legal Consultant, has been working on the bill for two years now.

The consultative session was chaired by the Attorney General, Mr Y. Varma, with interventions from the head of the consultant team from the IMF, Mr G. Esposito. It brought together representatives of the legal and financial professions and officials from the State Law Office, the Prime Minister’s Office, ICAC and the Financial Intelligence Unit as well as the Director of Public Prosecution (DPP). The session aimed at introducing the concept of Asset Recovery to stakeholders and getting the views of participants in the preparation of the bill.

In his opening remarks, the Attorney General said that the Asset Recovery Bill is in line with Government programme for an independent law department agency to reinforce the fight against transnational crime and recover ill-gotten gains. He added that the bill would prescribe procedures to enable recovery of proceeds from terrorist funding and organised crime. The proposed piece of legislation provides an important instrument in the fight against fraud, corruption and crime in general, he said.

The representative from IMF, Mr G. Esposito, recalled that combating money laundering and corruption was important to IMF since financial integrity is the basis of the financial stability of a country. In this perspective, the organisation provides substantial technical assistance to member countries on strengthening their legal, regulatory, institutional and financial supervisory frameworks for anti-money laundering initiatives and combating the financing of terrorism.

KPMG Frontiers in Tax: People thinking beyond borders in financial services

As the industry navigates its way through a new world order of regulation and oversight prompted by the financial crisis, we are seeing financial institutions looking to take their businesses successfully forward into the future. In this edition, we pick up on the two broad themes of changing regulation and risks and opportunities of the future; the emerging topic of living wills; and, the growing focus on risk management in tax emphasizing the need to build a high performing tax function.

Additional highlights include:

• recovery in M&A activity in some of the larger Western markets, as well as the continuing focus in the Asia Pacific region
• practical implications of the new UCITS IV directive on tax reporting and on fund structures
• how to reshape insurance for efficiency gains
• transfer pricing challenges posed by profit splitting and partnership structures
• an end to treaty shopping in Asia

Mauritius: Shariah Compliant Investment Opportunities‎

With the financial crisis challenging conventional banking and financial products, there is a growing interest in Islamic products. In Mauritius too, there is a mounting interest in structuring shariah compliant investments, including shariah compliant funds.

http://www.financierworldwide.com/article.php?id=7236

The Cayman Islands – A Tall Poppy

Cayman, as the “tall poppy” in the hedge fund space, has come under some pressure in recent times, but it continues to be the domicile of choice for a large majority of international hedge fund managers and investors and is set to continue to dominate this market for the foreseeable future. This article considers Cayman’s strengths, and why it will continue to lead the way in the funds industry, as well as some of the threats the jurisdiction presently faces.

To view this article from Conyers Dill & Pearman, please click the link below:

The Cayman Islands – A Tall Poppy

Conyers agit comme conseil juridique dans le cadre de la toute première introduction en bourse d’une compagnie Mauricienne sur le NASDAQ

Conyers agit comme conseil juridique dans le cadre de la toute première introduction en bourse d’une compagnie Mauricienne sur le NASDAQ

Conyers Dill & Pearman a conseillé la compagnie « MakeMyTrip Limited” dans le cadre de son introduction en bourse à hauteur de US$ 70 millions sur le « Nasdaq Global Market » le 17 Août 2010.

MakeMyTrip Limited est la première compagnie incorporée à Maurice à être listée sur une des importantes places boursières de New-York. Cette transaction est à marquer d’une pierre blanche pour Maurice car elle démontre clairement que Maurice est une juridiction acceptée pour des introductions en bourses majeures grâce à ses principes solides de bonne gouvernance et ouvre la voie à d’autres introduction sur les bourses américaines à travers Maurice.

Conyers Dill & Pearman a conseillé MakeMyTrip Limited sur les questions relatives au droit mauricien de la transaction en collaboration avec Latham & Watkins LLP pour les questions de droit américain et S&R Associates s’agissant de la loi indienne.

Craig Fulton, le responsable du bureau mauricien de Conyers a observé que « notre bureau mauricien a pu bénéficier de l’expérience considérable en matière d’introduction en bourse de notre bureau de Singapour et de nos capacités multi-juridictionnelles afin de mettre sur pied cette structure qui va créer un précédent. Etant un des pays émergents de l’ensemble économique BRIC, L’Inde est un marché de capitaux ayant un très fort potentiel. Cette introduction en bourse dénote un intérêt renouvelé pour la levée de fonds sur les places boursières et nous nous attendons à recevoir des instructions pour d’autres transactions de ce type. »

Conyers possède une expertise internationale reconnue s’agissant des introductions en bourses et agit comme conseil juridique dans le cadre de cotations sur plusieurs bourses asiatiques par l’intermédiaire des ses bureaux de Hong Kong et de Singapour.

Avec des bureaux aussi bien à Singapour qu’à Maurice, Conyers est idéalement positionné pour aviser sur des transactions venant de Maurice ou de l’Inde en cette période de regain d’activité des marchés.

Selon son site internet principal, www.makemytrip.com, MakeMyTrip Limited est la compagnie mère de MakeMyTrip (India) Private Limited et de MakeMyTrip.com Inc., la plus importante agence de voyages en ligne de l’Inde basée sur le nombre brut de réservations en 2009. La compagnie est soutenue par d’importants fonds de capital-investissements et propose l’accès, à travers ses subsidiaires, à toutes les compagnies aériennes majeures opérant de et vers l’Inde, à plus de 4000 hôtels en Inde et à une vaste sélection d’hôtels en dehors de l’Inde ainsi qu’aux transporteurs ferroviaires et plusieurs opérateurs majeurs d’autobus. Les actions de la compagnie sont cotées sur le NASDAQ sous le sigle MMYT.

Conyers advises on first Mauritius NASDAQ Listing

Conyers Dill & Pearman advised MakeMyTrip Limited on its US $70 million IPO on the Nasdaq Global Market on August 17, 2010.

MakeMyTrip Limited is the first ever Mauritius incorporated company to list on a major New York stock exchange. The transaction is a landmark for Mauritius, as it clearly demonstrates that Mauritius is an accepted jurisdiction for major listings due to its robust systems of corporate governance, and paves the way for future US listings through Mauritius.

Conyers Dill & Pearman advised MakeMyTrip on Mauritius law aspects of the listing alongside Latham & Watkins LLP, who provided US law advice, and S&R Associates, who advised on Indian law. Shearman & Sterling LLP acted as US counsel to the underwriters, Morgan Stanley & Co. International plc, Oppenheimer & Co. Inc. and Pacific Crest Securities LLC, with Amarchand & Mangaldas & Suresh A. Shroff & Co. providing Indian law counsel.

Craig Fulton, Head of Conyers’ Mauritius office, commented: “Our Mauritius practice was able to draw on Conyers’ deep experience in complex IPO work in Singapore and our multi-jurisdictional capabilities in such transactions to bring about this precedent-making structure. As one of the BRIC emerging market nations, India is an important capital market with huge growth potential. The listing indicates a renewed appetite for capital raising on stock exchanges and we expect more transactions of this type to follow.”

Conyers has an international reputation for IPO expertise and advises on listings on many Asian stock exchanges through its Hong Kong and Singapore offices.

With offices in both Singapore and Mauritius, Conyers is ideally positioned to advise on work coming out of Mauritius and India as the market revitalises.

According to its primary website, www.makemytrip.com, MakeMyTrip Limited is the parent company of MakeMyTrip (India) Private Limited and MakeMyTrip.com Inc., India’s largest online travel company, based on 2009 gross bookings. The company is backed by several major private equity funds and provides access through its subsidiaries to all major domestic full-service and low-cost airlines operating in India, all major airlines operating to and from India, over 4,000 hotels in India and a wide selection of hotels outside India, Indian Railways and several major Indian bus operators. The company’s shares trade on Nasdaq under the symbol MMYT.

Since establishing a Mauritius presence last year, Conyers has received a significant number of instructions and built a solid reputation for delivering the highest quality legal advice in a responsive and timely manner.

Bank of Mauritius Vacancy: Post of Head / Director, Office of the Governor (Directeur de Cabinet)

The Governor is supported by a small, dedicated and multi-disciplinary Office which the Head/Director of the Office shall lead.

Click here for details

Jailhouse Frocks: Locating the Public Interest in Policing Counterfeit Luxury Fashion Goods

David S. Wall and Joanna Large

Br J Criminol (2010)

Counterfeiting raises some interesting intellectual questions for criminologists, policy makers and brand owners, not least that it differs from the types of offending that traditionally form the crime diet of the criminal justice system. Whilst it is growing in prevalence due to the enormous returns on investment, it is unlikely that the public purse will fund major anti-counterfeiting initiatives in a climate of public sector cut-backs, emphasizing the need to allocate resources effectively. This article seeks to locate the public interest in policing counterfeit luxury fashion goods by separating it out from the broader debate over safety-critical counterfeits such as aircraft parts. It then maps out what is, in effect, the criminology of desire for counterfeit goods, before outlining the market incentives for counterfeiting and related criminal activity.

Full Text (HTML)

Full Text (PDF)

Trustee residence: STEP publish guidance agreed by HMRC

Joint bodies agreed guidance seeks to clarify trust residence rules by way of case studies

Guidance to clarify when trusts are to be considered UK resident has been published jointly by the ICAEW Tax Faculty, the CIOT and STEP.

The guidance note, which has been agreed by HMRC, covers the practical application of the trust residence rules. By way of example case studies it seeks to illustrate the practical application of the legislation and develop some of the principles included in HMRC’s own guidance material dated 1 July 2009.

The rules for determining whether a trust is UK resident involve considering inter alia whether the trust is operating through a permanent establishment or branch or agency in the UK. Permanent establishment is an OECD concept which applies to corporates. The trustee residence rules for income tax and capital gains tax respectively are in section 475(6) Income Tax Act 2007 and section 69(2D) Taxation of Chargeable Gains Act 1992 and were introduced in Finance Act 2006 as part of trust modernisation.

The guidance arises from the concern shared by ICAEW, CIOT and STEP that the Finance Act 2006 trust modernisation changes to the rules governing the residence of trusts lack certainty and clarity. The rules do not even provide consistent treatment for different types of trustees and the uncertainty as to how the rules work is deterring investment in the UK and the use of UK trustees and trust specialists.

In parallel with clarifying with HMRC how the current rules apply in practice, the three bodies are engaged in discussions with HM Treasury and HMRC about how the rules for determining trust residence might be improved.

ICAEW TAX FACULTY, CIOT AND STEP GUIDANCE NOTE (PDF)

Mauritius : Facing the Euro Zone Crisis & Restructuring for Long Term Resilience

The Mauritian economy is once again buffeted by a major external shock, this time by the euro zone crisis. Once more, and in a relatively short span of time, Mauritius is called upon to demonstrate its capacity to respond effectively, to adapt its policies and even to rethink its strategies.

Facing The Euro Zone Crisis & Restructuring For Long Term Resilience

Mauritius a potential springboard for investing in Africa

With its favourable tax regime and other business-friendly policies, Mauritius has over the years managed to attract a host of companies that use the island as a base for their foreign operations.

Mauritius also has double taxation agreements in place with a number of African countries which could make it an attractive platform for companies that want to do business on the rest of the continent.

Mauritius a potential springboard for investing in Africa

Mauritius: Internet subscribers increased by 43% in 2009

The number of Internet subscribers in 2009 registered an increase of 43.4% with figures going up from 199,500 in 2008 to attain 286,000 in 2009, reports the latest issue of the Economic and Social Indicators on Information and Communication Technologies (ICT) statistics.

This increase was due to a 70.8% hike in the number of mobile Internet subscribers, which rose from 104,800 in 2008 to 179,000 in 2009, while the number of fixed Internet subscribers went up by 13 % from 94,700 to 107,000 for the same period. The share of mobile Internet subscribers among the total Internet subscribers was 62.6% in 2009 in comparison to 52.5% in 2008. As for broadband Internet subscribers, i.e. those with an Internet connection of at least 128 kilobits per second, the figures soared by 61.7% to reach 254,350 against 157,320 in 2008.

The total number of mobile cellular subscribers went up by 5.2% to attain 1,086,700 in 2009 from 1,033,300 in 2008 resulting in a 4.7% increase in Mobidensity i.e. the number of mobile cellular phones per 100 inhabitants. Concerning households with fixed telephone, the percentage decreased from 77.4% in 2006 to 73.6% in 2008.

Data also show an increase in ICT access by households and individuals as well as on educational and work sites from 2006 to 2008. The percentage of households owning computer and having Internet access attained 29.9% and 20.2% respectively in 2008, compared to 24.2% and 16.6% in 2006. In 2008, 35.4% of persons aged 12 years and above reported using a computer and 21.8% using Internet, compared to 31% and 18% respectively in 2006.

As regards the education sector, at the end of March 2009, the percentage of primary schools providing Internet access to students for study purposes rose to 19.9% from 6 % in 2008 while the figure in secondary schools increased to 95.7% against 93.6% in 2008. Concerning ICT usage on work sites, in 2009, 92% of large establishments made use of Internet/email against 90.4% in 2008. The percentage of establishments having websites was 48.3% in 2009 compared to 43.9% in 2008.

In 2009, the contribution of the ICT sector to the Gross Domestic Product was 5.7% compared to 5.3% in 2008. The number of employees in large establishments expanded by 10%, totalling 12,360 in 2009 from 11,250 in 2008.

Bank of Mauritius : Landmark Judgment

Background Information

Supreme Court Judgment

Mauritius : The FSC releases its 3rd Annual Statistical Bulletin 2010

The Financial Services Commission is pleased to announce the release of its Annual Statistical Bulletin.

Pursuant to section 6(j) of the Financial Services Act 2007, one of the functions of the Commission is to “collect, compile, publish and disseminate statistics in respect of the financial services and global business sectors.”

The Bulletin provides up-to-date figures on the sectors regulated by the FSC and presents a synopsis of current trends in the financial services sector (other than banking) for the period ending 31 December 2009 and the period ending 31 December 2008. However, data submitted by insurers in their Statutory Returns relates to their respective financial year ending in 2009.

The total assets for the financial services sector (excluding companies holding a Category 1 Global Business Licence increased from MUR 23.16 billion in 2008 to reach MUR 24.81 billion in 2009, representing an increase of 7%. In terms of assets, the leading performers in 2009 were leasing companies, treasury management companies and investment dealers.

The total turnover generated by the entities surveyed for 2009 amounted to MUR 4.28 billion which represented an increase of 6% over the previous year. The top performers in 2009 in terms of total turnover were leasing companies, insurance brokers and custodian services.

The global business service providers generated total assets of USD 131.87 million in 2009 representing an increase of 11% over the previous year. An increase of 15% in turnover was also reported by surveyed Management Companies. Total turnover of USD 158.53 million was generated in 2009 and increased by 15% over the previous year. Profits, reported by 94% surveyed Management Companies, in 2009 stood at USD 12.10 million.

Gross premium received for Long Term insurance business stood at MUR 9.5 Billion in 2009 compared to MUR 9 Billion in 2008. For General insurance business, gross premium stood at MUR 5.2 Billion compared to MUR 4.7 Billion in 2008.

Total assets of companies in the long term insurance sector stood at MUR 64.9 Billion in 2009 compared to MUR 54.7 Billion in 2008. For companies in the general insurance sector, total assets stood at MUR 11.8 Billion compared to MUR 10.4 Billion in 2008.

The Statistical Bulletin 2010 can be downloaded from the FSC website

FSC : Revocation of five Global Business Licences

Further to the press release dated 27 May 2010 regarding the suspension of a number of Global Business licences, the Financial Services Commission has, in accordance with Section 74 (5) of the Financial Services Act, now revoked the Global Business Licence of the following companies:-

1. BASEL FINANCIAL INC.
2. FXCOMPANY FINANCIAL GROUP LTD
3. FXMarkets Ltd
4. FXOpen Investments Inc.
5. WORLD DERIVATIVES TRADERS LTD

Furthermore, pursuant to Section 74 (7) (b) of the Financial Services Act, the above companies have been directed to start the winding up of their business.

iPads arrive in the boardroom thanks to ICSA Software

August 2010 sees the launch of ICSA Software’s Blueprint BoardPad for the Apple iPad, an innovative solution aimed at bringing the boardroom into the 21^st century by moving board papers into the digital realm.

“This will really change things”, comments Mike Evans, ICSA Software’s CEO. “Directors no longer need be burdened with carrying heavy board packs and waiting for their delivery, or to worry about the security of confidential documents and whether they have the latest version. They can now have a single board pack – the iPad with Blueprint BoardPad – which is secure and automatically updated with details of every meeting they need to attend and the latest meeting documents. Directors can read and mark-up documents anytime, anywhere, even when they’re not connected to the internet”.

Commenting on the take-up of technology in the boardroom Mike Evans said “feedback from company secretaries regarding board portals is clear: it has to be simple for directors to use. The iPad is remarkably simple to use and when designing Blueprint BoardPad we have adopted the look and feel of iPad apps, making it intuitive to use and familiar to existing iPhone and iPad users.

Blueprint BoardPad is the “missing link” between company secretariat and directors on the move, in the office, company secretariats can use Blueprint OnBoard software, which links with Blueprint BoardPad, to manage information for boards and committee meetings and upload the latest versions of papers, as and when they are available. Using Blueprint BoardPad on their iPads, directors can then access the latest changes made by their secretariat. New information is automatically sent to directors’ iPads when they have an internet connection, either through 3G or Wi-Fi. This provides both directors and company secretariat with an invaluable tool, helping to simplify processes, improve security and enhance governance.

Global private equity investments down 50 per cent in 2009, first half 2010 figures show market stabilising

• $91bn of private equity was invested globally in 2009, down from $181bn in 2008. Funds raised fell by two thirds to $150bn.
• Half year 2010 figures show a slight increase in investments on the same period in 2009.
• Funds raised for secondary market investments reached record levels in 2009.
• Investments and funds raised in the UK fell 63% and 87% respectively in 2009.

Global private equity investments fell by a half in 2009 to $91bn according to the Private Equity 2010 report released today by TheCityUK: the new independent membership body promoting the UK financial and related professional services industry. Buyout activity dropped for the second year running as private equity firms struggled to obtain debt finance to complete deals. Deal making however gathered momentum with larger deals announced in the latter part of the year. Private-equity backed activity generated only 6.3% of global merger & acquisition volume in 2009, the lowest level in more than a decade.

Indicators for the first half of 2010 show that investment activity totalled $55bn, slightly up on the same period in the previous year, with private equity firms focusing on investments in small and medium sized companies. Full year figures for 2010 may show a moderate increase on 2009 if the gradual recovery in investments seen in recent months is sustained. TheCityUK report also states that over the next five years, some $800bn in loans extended on existing private equity investments are due to be refinanced. The high-yield bond market is expected to fill the financing gap left by the decline in leveraged loan issuance.

Global fund-raising fell by two-thirds in 2009 to $150bn, the lowest annual amount raised since 2004. Figures for the first half of 2010 show a total of $70bn raised, slightly below the same period in 2009. The secondary market for private equity, where existing stakes in private equity holdings are bought and sold, has seen a record $17.5bn raised in 2009. Meanwhile, total global private equity funds under management were slightly up on the previous year at $2.5 trillion. The fall in investments and increase in unrealised portfolio positions contributed to a doubling of private equity funds under management in the past five years.

Worldwide investments of UK private equity firms mirrored falls on global markets, declining by 63% in 2009 to £7.5bn, while funds raised fell by 87% to £2.9bn. The UK private equity market, which remains the most developed outside the US, managed 13% of global investments. Start-up and expansion investments by private equity firms in the UK continue to play an important role in financing small and medium sized businesses. More than £1.4bn was invested in 723 UK companies in 2009.

Marko Maslakovic, Senior Manager Economic Research at TheCityUK, said: "Despite the challenges presented by the tough market conditions, London has successfully held its position as the largest European private equity centre, second only to New York globally. This reflects the City's continued attractiveness as a home to a broad range of funds, as well as offering access to a deep pool of private equity expertise."

A Guide to Fund Management

A Guide to Fund Management

By Daniel Broby

Book Size: A4

ISBN-10: 1-906348-18-9

ISBN-13: 978-1-906348-18-2

Format: Paperback

Price: £265, US$519 or EUR399

In 2010, the fund management industry had some US$62 trillion of assets under management, generating fee revenue of over US$500bn. In order to capture the revenue opportunity fund management companies have to apply best practice and understand operational issues. This is not as easy as it sounds. They have numerous calls on their time and their core focus should always be investment performance. It was to address the resultant time optimisation dilemma that this guide was compiled.

A Guide to Fund Management is bang up to date, which is something that immediately makes it more relevant than the multitude of papers and operational notes that you are confronted with. It aims to offer one stop shopping on how to run a firm, addressing such issues as:

1. The different approaches to fund management
2. Revenue models
3. Complex regulation
4. Legal structures
5. Best practices and how to implement them
6. Performance generation and persistence
7. Clear and concise operational descriptions and functions
8. How to make the firm client centric
9. Product development
10. The threat and opportunities from alternatives to mainstream asset management

In addressing these issues, this guide should assist directors, executive committee, finance committee, investment committee, asset managers, and consultants in effectively managing, monitoring, and evaluating the operations of a fund manager.

A Guide to Fund Management gathers together accepted industry best practice, structure, operations and procedures. As a result, you can spend less time rummaging through industry white papers and more time on the strategic direction of your firm.

It is written in a way that will help you maintain the consistency of the investment processes, something which is necessary to produce good long-term performance and hence success.

TABLE OF CONTENTS

Preface

About the Author

Introduction

Definitions

1 The Business Model

Introduction

How the fund management industry evolved

The drivers of growth

The threats to growth

The profit dynamics

The cost dynamics

The productivity dynamics

Overcoming the downward pressure on fees

Taking advantage of the economies of scale

Delivering ‘value added’ to clients

Implementing structured decision making

Developing strong distribution capabilities

Starting up a new fund management venture

Conclusion

2 The Industry

Introduction

Recent evolution

Growth markets

The Alpha industry

Active return

The Beta Industry

Systemic return

The Asset Class Spectrum

Examples of different house styles

Segregated funds

Comingled, Pooled or Collective funds

Industry codes and standards

Asset Manager Code of Professional Conduct

Research Objectivity Standards

Trade Management Guidelines

3 The client spectrum

Introduction

Targeting the right segment

Overview of Institutional investors

Pension funds

Investment goals

Endowments and Foundations

Investment goals

Insurance companies

Investment goals

Private Investors

Investment goals

Safeguarding client assets

Conclusion

4 Legal and regulatory landscape

Introduction

Rules versus principles based compliance

Regulatory trade-offs

Self regulation versus government regulation

How to operate and maintain adequate compliance functions and procedures

Understanding the key regulatory concepts

Integrity

Skill, care and diligence

Fiduciary responsibility

Prudence

Market conduct

Money laundering

Chinese Walls

Fit and Proper

The geographic differences in regulation

US

UK

Europe

Far East

Offshore domiciles

Compliance, operations and procedure manuals

What should be included in an operations manual?

The importance of adequate capital

Conclusion

5 Investment process and philosophy

Introduction

Stating the investment Philosophy

Defining an investment process

The Investment Policy Checklist

Understanding the mathematical relationship between risk and return (CAPM)

Alternatives to CAPM

Active or passive management?

Accommodating style tilts and factors

Implementation of the investment process

Incorporation of models into the investment process

How to Index an investment fund

Conclusion

6 Skills and Structure in the front office (Portfolio construction and support)

Introduction

Setting a vision

Team or star manager approach

Avoiding groupthink

Incorporating the process driven value proposition into daily activities

Top-down

Bottom-up

Quantitative analysis

Qualitative analysis

What systems are required by the front office?

Front office systems providers

What Skills does a portfolio manager require?

Training

Ethics and Standards of Professional Conduct

How the chain of command works in practice

Personality type

Competence

Composition and role of the trading team

Conclusion

7 Skills and structure in the middle office (Risk and oversight)

Introduction

Integrating the structure of the middle office with the rest of the firm

Risk oversight policy implementation

Middle office Risk and Performance systems

Monitoring style drift

Staff, Skills and Shared Values

Responsibility for operational risk

Responsibility for business continuity risk

Preparing a Business Continuity Plan

Counterparty risk

Portfolio Risk Control

Backtesting and stress-testing portfolios

Using factor models and optimization software

Undertaking competitor and peer group analysis

Monitoring fund leverage

Conclusion

8 Skill and structure in the back office (Operations and support)

Introduction

Having robust systems and database

Handling derivative instruments

Handing day to day fund accounting

Ensuring efficient pre and post trade processing

Trade processing vendors

Implementing Straight-Through Processing (STP)

Establishing a records retention policy

Integrating the accounts function

Outsourcing

Fund administrators

Prime brokerage

Adapting to accommodate short selling and securities lending

Back-office personnel issues

Conclusion

9 Job functions

Introduction

How to write internal and external job descriptions

Criteria for 'good' and 'bad' remuneration policies

How to decide on compensation

Performance-related compensation

The Chief Executive Officer

Transitioning to a New Chief Executive

The Chief Operating Officer

The Chief Financial Officer

The Chief Investment Officer

The Head of Trading

The Head of Technology

The Compliance Officer

The Risk manager

The Marketing manager

The relationship manager

Head of Performance

Establishing and employee review process

Maintaining an employee handbook

How to build a team spirit

Conclusion

10 Client acquisition

Introduction

Business development as a means to win new clients

Basic Foundations of client relationships

Communicating the right message

The role of Investment Consultants

Answering Request for Proposals

Writing Fact Sheets

Equity fact sheets

Debt fact sheets

Lead management and the importance of monitoring client contact

Marketing analytics

How to undertake systematic brand management

Building reputation

Addressing poor performance from a communications perspective

Having a public relations strategy

Employing third party marketeers

Drafting investment mandates

Adding constraints to an investment mandate

The internets role in client acquisition.

How to ensure efficient ‘Client on-boarding’

Conclusion

11 Client retention

Introduction

Communicating with clients

Communicating with Consultants

Using open architecture as a distribution channel

Understanding core-satellite asset allocation and its implications for client retention

The ‘Know your client’ requirement

Handling tracking error and investment constraints

Understand and surpassing expectations

Obtaining feedback from existing clients

Fostering good press and media relations

Goals and Objectives when dealing with the media

Crisis management when things go wrong

Managing client functions

Preparing performance reviews and client visits

How to treat the competition

Buying a fund management company7

Due diligence: Organization and Good Standing

Due diligence: Financial Information

Due diligence: Physical Assets

Due diligence: Employees and Employee Benefits

Due diligence: Mandates and funds

Due diligence: Taxes

Due diligence: Material Contracts

Due diligence: Open Ended Funds and Closed Ended Funds

Due diligence: Customer Information

Due diligence: Litigation

Due diligence: Incidentals

Conclusion

12 Performance reporting and valuation

Introduction

Choosing appropriate benchmarks

Understanding attribution analysis

The Brinson Hood Beebower Model

Building a Reporting interface

Fair reporting

Accurate reporting

Timely reporting

Utilising factor models in reporting

Value at Risk as a tool to understand risk

The performance report format

The asset allocation report format

The transaction report format

Pricing and valuation

Global Investment Performance Standards

Soft Dollar Standards

Conclusion

13 Product design

Introduction

Building the Product

Composition and structure of the product team

Establishing a timeline for product intorduction

Determining fee levels for new products

When to use performance fees.

Choosing the legal structure for new products

Open ended

Closed ended

Master feeder funds

Multi-Class Funds

Taking taxation into consideration

Design considerations

When to incorporate leverage

Handling the liquidity of the underlying instruments

Taking capacity into account

Clearly stating fees

What to put in the ‘Prospectus’

Recent product innovations

How to structure solutions for clients

Wrap funds

Offshore products

How to design Index Funds

How to address investment fund board independence

Conclusion

14 Alternatives

Introduction

Socially Responsible Investment (SRI)

Shari'ah Compliant Investment

The use of leverage

The use of derivatives

Structured products

Hedge funds

Counterparty credit risk exposure

Trading practices of hedge funds

Hedge fund fees

Commitment Period (lock-ups)

The use of side letters

Selecting a Maximum Fund Size

Imposing redemption terms (gates)

Types of hedge fund

Convertible Arbitrage funds

Distressed Securities funds

Fixed Income Arbitrage funds

Long/Short funds

Macro funds

Risk/Merger Arbitrage funds

Private Equity

The role of Limited Partnerships

Property

Closed-ended funds

Open-ended funds

Investment trusts

Conclusion

References

AUTHOR BIOGRAPHY

As a senior figure in the asset management industry, Daniel Broby is a champion of capital markets. His focus on high level principals, integrity and best practice underlie his professional success.

Daniel built his career on the back of a strong grounding in finance theory. He has an MPhil in economics and an MSc in investment analysis. He was elected an individual member of the London Stock Exchange in 1990; is a Fellow of Chartered Institute of Securities and Investment; a Fellow of CFA UK; and a Visiting Fellow at Durham University. He was presented with the CFA Institute’s Society Leader Award in 2006.

Daniel has had a number of ‘C’ level positions at the largest asset managers in Scandinavia and Russia. These include chief executive officer, chief investment officer and chief portfolio manager. His career, however, has revolved around the London market. He was a board member of CFA UK, and it predecessor, for over 10 years.

Daniel’s focus has always been active asset management. His success in investment performance was recognised by Morningstar who rated the flagship fund he managed for eight years with five stars

Daniel has pioneered a number of investment solutions. He introduced the first regulated hedge fund and pioneered structured products in the Danish market. He has launched various investment funds, including a number focused on frontier markets such as Africa.

Daniel has written two highly recognised books on the profession and numerous articles for industry journals. He was commissioned by the Financial Times to write The Changing Face of European Fund Management.

Daniel has also contributed to the body of financial knowledge by writing A Guide to Equity Index Construction for Risk Books. Securities & Investment Review observed that it ″explores in intricate detail the various workings of modern portfolio theory, choosing a benchmark, measuring risk and sampling and selection procedures.″ Professional Investor magazine opinioned that ″rarely does a book genuinely represent a first in its field."

Financial markets should be left to regulate themselves

In a new research paper released today, the Institute of Economic Affairs argues the coalition’s proposals on financial reform will do little to improve the quality of financial regulation in the UK.

The coalition is proposing to abolish the FSA and reallocate its functions between a series of new quangos and the Bank of England. Instead “Does Britain need a financial regulator?” (authored by Philip Booth and Terry Arthur) suggests the regulation of investment markets, financial products, insurance companies and other financial institutions, currently carried out by the FSA and the Pensions’ Regulator, should be stopped and these sectors should instead be allowed to self-regulate within a framework of limited primary legislation.

Only banks linked to the payments system should be regulated and this should be done by the Bank of England. Instead of the coalition’s levy on banks, banks should provide the capital needed for the central bank to run a risk-based deposit insurance scheme.

In summary, the paper argues that a central regulator is the wrong model to generate appropriate rules and regulations for the financial sector. The FSA should be abolished, along with almost all its functions.

Philip Booth, Editorial Director at the IEA and author of the report, “Does Britain need a financial regulator?” said:

“The market mechanism is enough to guarantee effective regulation: the number of financial scandals has not reduced in the era of statutory, bureaucratic regulation. Other than in the case of banks dependent on the Bank of England for deposit insurance and lender of last resort facilities, the financial system should be left to self-regulate.”

“If the coalition genuinely wants to create better regulation in the financial sector, along with more competition and cheaper capital for companies, they should scrap the FSA and the vast majority of its functions and leave the financial sector to itself as far as possible.”

Investment markets

Statutory regulation of the stock exchange and other investment markets is a recent development, only introduced in 1986. Self-regulation of exchanges works better, as exchanges have a strong incentive to develop the best regulatory systems possible in ways that reduce the cost of capital to companies. Exchanges need to attract both companies that wish to raise capital through them and investors. They therefore need efficient but effective systems of regulation. Investment markets should therefore be allowed to regulate themselves.

Both history and economic theory show that the statutory regulation of investment markets leads to bureaucratic rule-writing attitude instead of effective regulation.

Investment markets are now regulated by an incomprehensible combination of EU and UK statutory regulation which is unnecessary and costly.

The paper proposes:

• To abolish statutory regulation of investment markets and exchanges. As a first step towards this, this paper supports the recent Treasury Green Paper’s proposal to allow regional stock exchanges to be set up exempt from financial regulation.

• That, as an extension of this model, the Alternative Investment Market (AIM) should be allowed to establish a sub-market where companies that are quoted only on AIM could be traded according to rules developed by the exchange itself with no other statutory regulation.

Regulation of banks

The focus of regulation of banks should be the protection of the payments system, while individual banks should be allowed to fail in an orderly fashion.

The paper proposes:

• As per the coalition’s proposals, the central bank should be the regulator of those banks connected directly to the payments system and, in return, the central bank would be the provider of lender-of-last-resort facilities, to those banks as at present.

• However, in stark contrast to the coalition’s proposals the research’s authors argue that the central bank should have its capital provided by the banks that it regulates, rather than the government and that other banks should not be regulated.

Regulation of investment banks and other financial institutions

Hedge funds, investment banks and other private investment funds should not face statutory regulation. Instead the regulator of commercial banks – the Bank of England – should ensure that banks are appropriately regulated where they have risky counterparties. Thus, if a bank connected to the payments system has significant exposure to an investment bank and the investment bank, in turn, is exposed to the failure of one or more hedge funds, then this may be a reason for the Bank of England to take appropriate action in relation to the narrow range of banks it regulates.

Does Britain Need a Financial Regulator?

Only a generation ago, UK investment markets were regulated by self-governing exchanges. Though independent exchanges still exist, investment markets have become regulated in ever more detailed ways by statutory bodies such as the Financial Services Authority. These bodies have no clear lines of accountability, nor do they have incentives to develop appropriate systems of regulation.

This monograph shows that the arguments in favour of statutory regulation are unconvincing and have weakened as the potential for international competition between exchanges has developed. The history of sophisticated self-regulating investment markets is an astonishing success story. Experience shows that statutory regulation of investment markets is unnecessary and has the potential to abuse important principles of the 'rule of law'. Given this, statutory financial regulators should be abolished. Some of their functions could be given to other government bodies, but one of their most important functions - that of regulating investment markets - should be handled by private bodies.

Download full publication

Mauritius : Hedge Fund (Global CIS / Closed-end Fund)

There is no dedicated hedge fund regulatory regime in Mauritius, hedge funds are structured and licensed as a Collective Investment Scheme or a Closed-end Fund.

A Collective Investment Scheme (“CIS”) is defined under the Securities Act 2005 (“SA 2005”) as a scheme approved by the Financial Services Commission (FSC) in Mauritius:

• whose sole purpose is the collective investment of funds in a portfolio of securities, or other financial assets, real property or non-financial assets as may be approved by the FSC ;
  


• whose operation is based on the principle of diversification of risk;
  


• that has the obligation, on request of the holder of the securities, to redeem them at their net asset value, less commission or fees; and
  


• where the participants do not have day to day control over the management of the property, whether or not they have the right to be consulted or to give directions in respect of such management.

• includes closed-end funds whose shares or units are listed on a securities exchange; but
  


• excludes such schemes as are specified in Part II of the Schedule SA 2005.

A Closed-end Fund means an arrangement or a scheme, other than a CIS, whose object is to invest funds, collected from investors through an offer or from sophisticated investors, in a portfolio of securities, or in other financial or non-financial assets, or real property.

A "Global scheme" is defined under the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 (“Regulations”) as a company or any other legal entity approved by the FSC, holding a Category 1 Global Business Licence (GBL 1) and authorized to carry out activities falling within the definition of a Collective Investment Scheme.

Conditions applicable to Global schemes

The FSC may grant an authorisation for a Global scheme provided that:

1. information relating to the CIS Manager and the custodian as prescribed in the Regulations is submitted with the application for authorisation;
   


2. a CIS administrator [e.g. OCRA (Mauritius) Limited] with a place of business in Mauritius is appointed;
   


3. the accounting and reporting services are carried out by the CIS Manager, or the CIS Administrator of the scheme, having a place of business in Mauritius.
   


4. The prospectus or other offering document contains the following statements in a prominent position:
   
   "Investors in [name of the Global scheme] are not protected by any statutory compensation arrangements in Mauritius in the event of the fund's failure."
   
   "The Mauritius Financial Services Commission does not vouch for the financial soundness of the fund or for the correctness of any statements made or opinions expressed with regard to it."
   


5. a certified copy of the prospectus or other offering document filed in a jurisdiction where the collective investment scheme is regulated or exempted from regulation is filed with the FSC;
   


6. information is provided on the CIS Manager and the custodian, including name and registered addresses and where regulated, if applicable;
   


7. information is given on whether the collective investment scheme is regulated, or shall be subject to regulation, in any jurisdiction and if so, a copy of the authorisation or similar consent of the regulator and if not, indication on what basis it is exempted from securities regulation in other jurisdictions;
   


8. adequate measures are taken to prevent money laundering and financing of terrorism and provided that the FSC is satisfied that these measures meet legislative requirements.

An authorisation under section 97(5) SA 2005 may be granted subject to such terms and conditions the FSC considers necessary or desirable for the protection of participants.

Subject to FSC approval, a Global scheme may appoint and retain a CIS Manager and/or a custodian established in a foreign jurisdiction.

An “Expert Fund” is defined as a fund which is only available to expert investors. A Collective Investment Scheme (“CIS”) may apply to the Financial Services Commission (“FSC”) under the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008 (“Regulations”) for authorisation as an expert fund.

Such application must include the following documents / information:

• constitutive document of the scheme;
  
• measures taken to prevent money laundering and financing of terrorism;
  
• latest audited financial statements;
  
• a copy of the offering document given to potential investors; and
  
• if applicable, information on the CIS manager as requested in regulation 6.

Conditions applicable to an Expert Fund

1. An expert fund shall only be available to expert investors.
   
2. An expert fund may appoint a manager who, where appointed, shall be the holder of:
   
   (a) a CIS manager licence; or
   
   (b) a licence issued by a regulatory body in a jurisdiction having comparable regulation as Mauritius for investor protection (e.g. FSA in UK or SEC in US)
   
   
3. The CIS manager of an expert fund need not be resident in Mauritius.
   
4. The Board of the fund or the CIS manager where appointed must satisfy itself that the fund is and continues to be managed in accordance with the fund’s constitutive documents.
   
5. The Board of the fund, or the CIS manager where appointed, shall be responsible for ensuring that the provisions of these Regulations applicable to expert funds are complied with.
   
6. The expert fund shall accept as investors in the fund, only such persons as the Board or CIS manager where appointed is satisfied are expert investors.
   
7. The offering document or any other similar document of an expert fund shall:
   
   (a) contain a statement to the effect that the expert fund shall be available only to expert investors,
   
   (b) contain in a prominent position, the definition of an expert investor; and
   
   (c) shall have the following statements in a prominent position -
   
   "Investors in [name of the expert fund] are not protected by any statutory compensation arrangements in Mauritius in the event of the fund's failure."
   
   "The Mauritius Financial Services Commission does not vouch for the financial soundness of the fund or for the correctness of any statements made or opinions expressed with regard to it."
   
   
8. In accordance with section 30 of the Financial Services Act 2007 the audited accounts of the expert fund shall be filed by the scheme, the CIS manager or the CIS Administrator as appropriate.

Expert Investor

An “expert investor” means-

(i) an investor who makes an initial investment, for his own account, of no less than US$ 100 000; or

(ii) a sophisticated investor as defined in the Securities Act 2005 or any similarly defined investor in any other securities legislation (e.g. an accredited investor under US federal securities laws)

Exemptions for an Expert Fund

An expert fund, subject to authorisation from the FSC, shall be exempt from the provisions of the Regulations except for regulations 78 to 81 and Part I and XII.