The time taken to set up a fund in offshore centres varies between 24 hours and 12 months, according ...
The KPMG Funds and Fund Management 2000 surveys a number of criteria for setting up a fund, including investment restrictions, fund borrowing, costs and set-up time.
According to the editor of the report, Robert Barker, who is based in KPMG Ireland, the wide variation in fund set-up times is down to the amount of regulatory hurdles funds have to overcome plus sheer volume.
Barker said: "Basically, funds can be set up quicker in centres which have less regulations."
Despite being fully regulated and experiencing massive volumes of fund registrations, both Ireland and Luxembourg state set-up time for a fund takes up to three months, which is reasonable compared with centres such as Singapore, where fund authorisation can take between six and 12 months, and Switzerland which takes up to four months.
Other factors affecting the speed of setting up a fund include whether the fund is aimed at the institutional or retail market, with a retail fund requiring a higher level of compliance with regulations.
The quickest centres for fund registration, according to the survey, are based in the Caribbean. Bermuda states five working days and the British Virgin Islands is 24 hours for an IBC and two to three weeks for a fund. The Cayman Islands states one to four weeks.
Obviously, if a fund management group is already authorised in the centre then the time taken to set up a new fund, particularly if it is a sub-fund of an existing fund, is even quicker.
Barker believes that as regulatory authorities gain more understanding of alternative fund structures in centres such as the Isle of Man, then the time taken to authorise these funds will become even quicker.
Further highlights of the survey can be found in the guide to global financial centres enclosed with this month's issue of International Investment.
For enquiries about the the survey, contact Robert Barker on [email protected]
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