IoM Fund Structures
Mutual funds can take the form of open or closed ended companies, trusts, limited partnerships or pure contractual arrangements.
Large retail funds can take advantage of the Island's Designated Territory status to market to the public in the UK.
Investors can participate through the holding of shares, debt structures, units or basic contractual rights.
Essentially there are five main categories of mutual funds which can be established on the Island:
Authorised Schemes
Authorised Schemes are of greatest interest to promoters requiring a retail investment product which is capable of promotion to the public in the Isle of Man, UK and elsewhere. Benefits from a high degree of investor protection legislation.
Professional Investor Fund
Introduced in 1996 PIF's are designed for the use of wealthy institutional and professional investors. As unregulated funds they can be established quickly and inexpensively and are not subject to any restriction on the number of investors.
Restricted Schemes
Restricted Schemes are capable of promotion to the general public outside the Isle of Man, these funds are subject to limited regulation. Highly flexible, Restricted Schemes can be used as retail or institutional funds.
Exempt Schemes
Exempt Schemes are unregulated private funds which cannot be marketed to the public and are generally suitable for small groups of investors.
Experienced Investor Fund
In 1999 a major new funds initiative for funds promoters targeting skilled investors was launched. You can access details of this new fund here:
Investment Funds
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