Qualifying Fund

The  Qualifying Fund (QF) is the ideal solution for distribution to non-retail investors, offering maximum flexibility on strategy and asset allocation.

The QF  is aimed at institutional and non-retail investors. Prospective investors must certify that they are sufficiently experienced to understand the risks associated with an investment in the QF in question and must fall into one of the categories of permitted investor. Broadly speaking, these cover institutional investors, affiliates of the fund's promoters and managers, and persons whose expertise, experience and ability to appraise the merits of an investment in the fund is certified by an acceptable financial adviser.

There is a no prescribed regulatory minimum initial investment requirement for a QF.

There is no requirement for any pre-approval to be sought from the Financial Supervision Commission (FSC) or any other body. This means that a QF can be launched quickly and without any risk of regulatory delays. At present, there are no initial or ongoing fees in the Isle of Man relating to the establishment or operation of QF, although a modest annual corporate charge is payable in relation to the use of an Isle of Man corporate vehicle. Modest fees are likely to be introduced in the near future by the FSC.

There are no regulatory restrictions on asset classes, trading strategies or leverage for a QF. As a result, the QF is suitable for any type of investment fund, from traditional, long-only equity funds to hedge fund strategies and from private equity to property investment. A QF can obtain investment advice from any appropriate source acceptable to the board of directors and its Isle of Man licensed fund manager.

Qualifying Fund Factsheet
Download the IoM Government Factsheet>> (345kb PDF)