The legislative environment, developments in competition and the market and the evolution of a fund are some of the reasons why some fund providers are prompted to consider moving their funds to another jurisdiction. Such transfers are complex and must be authorised by the supervisory authorities in the outgoing and incoming countries. The fund management company must ensure that the investors’ rights are guaranteed, particularly with respect to equal treatment. When moving a fund, the distribution options from the target country must also be examined, as well as the possibility to maintain the track record.
T&CO helps its clients with this process. In its experience, the first step is to ascertain the pros and cons of making such a move and, if need be, the most appropriate country to host the fund. This choice having been made, the best way to proceed with the transfer must be determined (exchange of units, liquidation in kind, etc.). The transfer proposal should then be submitted to the supervisory authorities for approval. Only then may the transfer go ahead.
The issue of taxation should also be a matter for special attention. Where necessary, obtaining a tax ruling prior to the transfer is recommended, particularly with respect to stamp duty.
During such transfers, it is important to appoint one or more persons as a project manager to coordinate all of the parties involved. T&CO is fully capable of taking on this responsibility.