Saint Kitts: Offshore Business Sectors
Investment funds may be formed in Nevis under the Nevis International Mutual Funds Ordinance 2004. A mutual fund is defined under the Ordinance as a company incorporated, a partnership formed, a unit trust organized or other similar body formed under the laws of Nevis or any other jurisdiction which collects and pools investor funds for the purpose of collective investment.
The definition includes umbrella funds whose shares are split into a number of different classes of funds or sub-funds. It also includes a fund which has one or more investors which are mutual funds not registered or recognized by the Ordinance.
The Ordinance divides mutual funds into three classes:
- Public Funds, offering shares or units to the general public and which are required to be registered;
- Private Funds, offering shares on a private basis with no more than 50 investors and which are required to be recognized by the Minister of Finance upon proof that it is lawfully constituted; and
- Professional Funds, available only to professional investors with an initial investment of not less than USD100,000. These are also required to be recognized by the Minister of Finance, but can be fully operational for a period of 14 days without being recognized under the Ordinance.
The Ordinance allows a licensed or recognized mutual fund of an approved jurisdiction to be continued or redomiciled in Nevis. Also, Managers or Administrators who are not resident or domicile in Nevis and who are authorized to provide services under the laws of a recognized jurisdiction may operate from within Nevis after receiving written permission from the Minister of Finance.
The Nevis International Mutual Funds Regulations 2007 set the annual licence renewal fee at USD300 for Public Funds and USD200 for Private Funds and Professional Funds. The 2007 Regulations have allowed mutual funds to register in Nevis since 1st January, 2008.