Specialist Fund
The Specialist Fund is the category of choice for institutional alternative investment.
The Fund regulations define a "specialist investor" as, in the main, institutional investors, affiliates of the fund's promoters and managers and individuals with a net worth in excess of US$1 million.
A Specialist Fund is suitable for any type of alternative investment as there are no regulatory restrictions on asset classes, trading strategies or leverage. There are no regulatory pre-approvals required from the Isle of Man Financial Supervision Commission which means that Specialist Funds can be launched quickly without any risk of regulatory delays.
Other features of the Specialist Fund include:
- There is a minimum initial investment requirement of at least US$100,000
- A Specialist Fund must appoint a regulated fund administrator to perform its core administration requirements. The regulated fund administrator may be either an Isle of Man licensed fund administrator or a fund administrator which is appropriately licensed in a jurisdiction acceptable to the Financial Supervision Commission
- An independent non-executive director must be appointed to the board of the Specialist Fund and, if the Specialist Fund appoints an overseas administrator, an Isle of Man resident director who is licensed as a fiduciary in the Isle of Man or works for a licensed fiduciary provider must also be appointed
- Every Specialist Fund must have an offering document which accurately sets out all material information to enable a prospective investor to make an informed investment decision and which contains a limited number of prescribed statements
- Every Specialist Fund is required to prepare annual audited financial statements
- Whilst there are no prescriptive requirements for the appointment of a custodian, the custody arrangements must be described in the Specialist Fund's offering document
Specialist Fund Factsheet
Download the IoM Government Factsheet>> (320kb PDF)
