The Securities and Investment Business Act, 2010 (“SIBA 2010”), which replaced the Mutual Funds Act, 1996, regulates the operations of mutual funds and their managers and administrators that carry on business either in or from within the Territory. It also covers funds, which are domiciled in the Territory that operate elsewhere and funds, which are domiciled elsewhere that are sold in the Territory. SIBA 2010 provides for three types of mutual funds – private, professional and public funds.
Effective 1 June 2015, the Securities and Investment Business (Incubator and Approved Funds) Regulations 2015 came into force to introduce and regulate open-ended fund products being the Incubator Fund and Approved Fund. These funds are subject to a less strict regulatory approach and aim to assist managers to set up and maintain funds at a reasonable cost.
Effective 31 December 2019, the Securities and Investment Business (Amendment) Act, 2019 (“SIBA Amendment”) and the accompanying Private Investment Funds Regulations, 2019 (“PIFR”), introduced a new regime for the regulation of closed-ended funds or now categorised as private investment funds.