A “fund” is a generic term for an extremely wide range of structures serving an equally wide range of personal, corporate and/or investment purposes. It provides answer to a wide spectrum of circumstances – from a private equity investor looking for a one-off special purpose structure to satisfy the target’s regulatory requirements; to a FDI project with sovereign investors requiring a professional investment manager of international reputation to review its investment decisions; to a wealth management business setting up a series of open-ended funds to satisfy customers’ appetite for different financial products, risk diversification and isolation.
On the other hand, with the gradual expansion of FATCA and CRS (also known as AEOI) regimes, the mere adoption of an offshore fund structure is rarely sufficient if the purpose is to shield away all tax and regulatory accountability. Traditional arrangements are often closely scrutinised and looked through by foreign governmental authorities on the grounds that they lack genuine commercial purposes.
A fund practice, therefore, cannot be a standalone department working behind closed doors. It is imperative to understand the client’s actual needs and purpose, and utilise the various structures and tools available to suit such purpose while also identifying and avoiding any associated legal risks.
The design and terms of a fund structure often comes down to the respective domicile of the parties and/or the assets involved. Our full-service team looks after all aspects of our client’s plans and purposes, recommend and implement structures which minimises legal, regulatory, financial and reporting vulnerabilities in all aspects. Our expertise support investors, fund managers and project managers alike.
Flexible engagement structures
Building good rapport and long-term relationship with our client is always our priority. We offer flexible engagement options tailor-made to the client’s needs. We offer project-based, all-inclusive fixed fees for setting up various fund structures, and annual retainer packages covering enquiries and advice in daily operations and maintenance.
• Formulating fund structure most suitable to the parties’ particular needs and circumstances
• Sourcing and assisting in negotiations with managers, licensees, fund administrators, custodians and other professionals suitably qualified for operating the fund and managing the types of assets
• Preparing fund documents (PPM and supplement, subscription agreement, IMA, IAA etc.)
• Arranging for setting up of the fund entities, with offshore legal opinion if required
• Assisting in KYC, client due diligence and bank account opening process
• Evaluating proposed new business activities and operations, as well as projects and transactions, on legal and regulatory perspective
• Managing and advising on projects and transactions from start to finish
• Answering enquiries and providing legal and compliance advice on ad-hoc matters as and when required
• Attendance to annual renewal and audit matters
• Investigating and responding to enquiries from the SFC
• Handling complaints from and disputes with investors