Experienced Investor Fund (EIF)

About

The purpose of this page is to explain the application process for Experience Investor Funds.

This section sets out:

  • What an EIF and Collective Investment Scheme (CIS) is
  • Authorisation Process
  • Material Change Notifications
  • EIF Directors

What is an EIF?

EIFs are funds designed for professional, high net worth or experienced investors and are in accordance with the regime established under Part 18 of The Financial Services Act (the Act).

Under Part 18, any collective investment scheme in or from Gibraltar has to be authorised or recognised in accordance with Part 18. 

A CIS is any arrangement regarding a property of any description, the purpose or effect of which is to enable persons taking part in the arrangement (whether by becoming owners of the property or any part of it or otherwise) to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income.

The Board

Funds are able to set up as Protected Cell Companies if the GFSC is satisfied that there is a reduction in associated risks.

The GFSC will take into consideration whether the board of directors as whole have the appropriate skills, experience, and understanding. The Board must be able to demonstrate that there is adequate oversight over the different cells and the directors have time and resources to deal with the additional cells. The Board must be able to demonstrate that it has considered the need for specialist skills. The appointed directors must be able to demonstrate that they have a thorough understanding of the strategies of each of the cells to ensure sound judgement and management.

Depositary

An EIF is required to appoint a depositary unless the fund is a closed end fund or the GFSC makes a determination to that effect. Please refer to the depositary application page for further details regarding depositaries.

Administrator

The administrator of an EIF must be domiciled and regulated in Gibraltar or, if not so authorised, be established in a jurisdiction where it is regulated in accordance with a legislative and regulatory regime that provides at least equivalent protection to the regime in Gibraltar. The appointment of fund administrators established outside of Gibraltar requires the GFSC’s consent and is subject to the consent of the Minister with responsibility for financial services.

 

Application process

The administrator of an EIF will either:

  • Notify the GFSC of the establishment of the fund within 10 (working) days of an EIF being established; or
  • Notify the GFSC at least 10 (working) days before the fund is established to enable the fund to be registered with the GFSC prior to being launched.

Applicants should submit an application form and additional documentation with all relevant documents. We will not consider an application complete if there are any outstanding documents.

The application pack must consist of:

  • Registration Fee
  • Authorisation Form – EIF
  • A copy of the offering documents. The offering document must comply with the provisions of the EIF Regulations. In order to aid the application process, the applicant should ensure that the offering document clearly covers the points listed in the material document checklist. The investment strategy should be clear along with the valuation process and risks that tie in with the investment strategy of the fund. For open-ended funds (funds in which investors can join and leave the fund) the offering document should explain how liquidity will be maintained. It is the director’s responsibility to ensure the protection of investors and the terms of the offering document are fair to investors.
  • An opinion of a lawyer, of at least five years professional standing and who is also a Barrister or Solicitor of the Supreme Court of Gibraltar, that the fund complies with the relevant provisions of the EIF Regulations.
  • Certificate of Incorporation
  • AIFMD Reporting Template

 Please submit this form via E-mail to [email protected] with the following information in the subject field: ‘Name of EIF - application’. Paper copies are not required unless indicated by the Authorisation team. 

Please note that we accept signed signature copies sent via e-mail and electronic signatures, which must originate from the applicant’s domain.  

 

Material Change Notifications

A material change is a change to any material aspect of the fund (or cell/sub funds) which would potentially have a significant impact on subscribers. 

This includes, but is not limited to:

  • Any change to material relationships the fund holds, for example, persons performing any function in relation to the fund.
  • Any significant changes to the structure of the fund;
  • Any significant changes to the investment objectives/strategy/parameters of a fund, including those of an individual cell/sub fund;
  • An addition of a new cell/sub fund;
  • Significant changes that will affect how the NAVs are calculated or the actual valuations; and
  • Changes which are likely to affect subscribers negatively.

Minor changes in fees or subscription arrangements would not be considered a material change.

Material Change Process

Please submit this form to [email protected] with the following information in the subject field: ‘Name of EIF - Material Change’. Paper copies are not required unless indicated by the Authorisation team.  

EIFs should notify us of details of planned material changes at least one month before implementing the change. In other cases (i.e. an unplanned change), notification should be made immediately after the change occurs. Please submit forms to [email protected] 

Please note there is a Material Change Notification Fee.  For further details regarding fees, please refer to the Financial Services (Fees) Regulations 2020.

Material Change Notification Form

Exemption Notifications

Internally-managed (or alternatively known as self-managed) Experienced Investor Funds (“EIFs”) due to their size may be required to seek a permission to carry out the regulated activity to act as an authorised in-scope AIFM (more information on authorised in-scope AIFMs is available on our website). 

The Financial Services (Alternative Investment Fund Managers) Regulations 2020 (“AIFM Regulations”) provide internally-managed EIFs with the option to seek an exemption from being authorised as an in-scope AIFM. This is done by submitting an exemption notification to the GFSC.

Exemption Notifications Process

Regulation 8A of the AIFM Regulations sets out the eligibility and requirements for seeking an exemption.

Where an EIF meets the conditions set out in Regulation 8A(1) and wishes to apply for an exemption, a formal communication from either the EIF Board of Directors or the EIF’s legal representative should be submitted to the GFSC setting out the below information:

  • Statement that the named EIF requests an exemption under 8A(2) of the AIFM Regulations, together with date of EIF Board meeting where this was considered and decided.
  • Confirmation that the legal form of the EIF permits an internal management and its governing body has chosen not to appoint an external AIFM.
  • Statement that the EIF acknowledges that Part 8 of the AIFM regulations apply to the EIF.

Please submit notifications via email to [email protected] with the subject field: ‘Name of EIF – Exemption Notification’. Paper copies are not required unless indicated by the GFSC.