Launching a new collective investment scheme represents a major step for the fund provider.
The first step involves deciding on the most appropriate jurisdiction for setting up the fund, taking particular account of the envisaged scope of assets under management, the circle of investors involved and the countries and distribution channels to be used, as well as the expertise offered by the desired partners. The cost of setting up and structuring the fund could also prove significant, especially for small or mid-sized funds.
The second step involves selecting service providers. In this context, it is important for the fund provider to negotiate, particularly in terms of service providers’ fees and to carefully examine the services being offered, along with any termination and limitation of liability clauses. For example, it is not uncommon for those contracts offered by service providers to reduce their own liability to an excessive degree. Such clauses must be negotiated so that, in the event that the contract is not properly performed, the fund provider and respective investors are able to seek compensation accordingly.
The third step involves setting up the fund and obtaining the necessary authorisations. If the fund is distributed in jurisdictions other than that in which it was incorporated, it is also important to obtain all of the required authorisations from each of the relevant jurisdictions.
T&CO assists its clients at all stages of this process. The knowledge and expertise of its people are readily available to its clients.