Section 5Part 2 — Regulated Mutual FundsAmended
Mutual Fund Licences
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Amended by LG9/S2
An application f or a Mutual Fund Licence shall be made to the Authority in a form approved or provided for the purpose by the Authority and shall be accompanied by —
the current offering document or, if one has not been finally settled, the latest draft of the offerin g document together with a synopsis of that document;
details necessary to satisfy the Authority that the applicant complies or will be complying with section 4(1)(a)
or
;
details necessary to satisfy the Authority in accordance with subsection
; and ( d ) the prescribed non - refundable application fee and any fees as may be prescribed for administrative services provided in respect of the application. ( 2 ) The Authority has no power to grant a Mutual Fund Licence until it has been satisfied by the applicant that —
each promoter is of sound reputation;
the administration of the mutual fund will be undertaken —
by persons who have sufficient expertise to administer the mutual fund; and
by persons who are fit and prope r to be directors or, as the case may be, managers or officers in their respective positions; and
the business of the mutual fund and any offer of equity interests in it will be carried out in a proper way.
Nothing in subsection (2) is to be taken as prohibiting the Authority from granting a Mutual Fund Licence to take effect on the incorporation of any relevant company or, in the case of a foreign company, on the registration of the company under Part 9 of the Companies Act (2025 Revision) , or on t he establishment of any unit trust.
The Authority may grant a Mutual Fund Licence subject to such conditions as it considers appropriate.
The operator of a mutual fund shall ensure that, when carrying on or attempting to carry on business in or fro m the Islands, the mutual fund complies with any conditions contained in its licence, and a person who contravenes this provision commits an offence and is liable on conviction to a fine of one hundred thousand dollars.
The Authority may, on the written application of a licensed regulated mutual fund, waive, vary or revoke any condition contained in its Mutual Fund Licence.
A person shall not, in connection with an application for a Mutual Fund Licence, supply to the Authority information that that person knows or should reasonably know is false or misleading, and a person who contravenes this provision commits an offence and is liable on conviction to a fine of one hundred thousand dollars.