The FAME platforms is structured as a segregated account/portfolio. This means that the asset and liabilities of each Sub-Fund are segregated or “ring-fenced” from those of the other Sub-Funds on the Platform and avoid any cross-collateral risk. Each Sub-Fund will operate independently and the Investment Manager/Advisor of the Sub-Fund will be able to establish its own track record.
Forming a new Sub-fund on the Platform
In the Fame Bermuda platform, the new Sub-fund is established when the Sub-fund supplement is filed. The supplement is supplementary to the Private Placement Memorandum for the FAME Platform.
The supplement contains details of the offering of the shares including, subscription and redemption terms, a description of the investment objective and strategy and any relevant investment restrictions, disclosure of any leverage used, details of the service providers and a description of the custody and prime brokerage arrangements, biographical details of the principals of the Sub-fund Investment Manager/Advisor and a description of its contractual arrangements with the Sub-fund and a summary of fees and expenses.
In Bermuda, the supplement needs to be approved by the Bermuda Monetary Authority and to file it with the Registrar of Companies in Bermuda. The Sub-fund can only commence business and issue its shares to investors when the Supplement has been approved.
Sub-fund Investment Manager’s/Adviser’s duties
The Sub-fund Investment Manager/Advisor is responsible for carrying out the day to day advisory services of the Sub-fund and implementing its investment strategy. It’s contractual duties and responsibilities are set out in the Investment Advisory Agreement entered into between the FAME platform on behalf of the Sub-fund, Anaplans Asset Management Bermuda (AAMB) and the Sub-fund Investment Manager/Advisor. One of the principal benefits of the FAME platform offering is that it frees up time and resources for the Sub-fund Investment Manager/Advisor so that it can focus on its Investment strategy and building a successful track-record.
Regulatory requirements for the Sub-fund Investment Manager/Advisor
The Sub-fund Investment Manager/Advisor is exempt from licensing requirements in Bermuda. The Sub-fund Investment Manager/Advisor is required to comply with any local legal or regulatory requirements in the country in which it carries on its business and professional advice should be taken on this.
The principals of the Sub-fund Investment Manager/Advisor must be fit and proper persons and have appropriate experience to carry on their business. Short biographical details of the principals will be set out in the Supplement.
Sub-fund Tax issue
There is no income, capital gains or withholding tax in Bermuda and the Sub-fund is not subject to tax as the Bermuda jurisdiction is tax neutral. Bermuda is on the Organization for Economic Cooperation and Development’s (OECD) “white” list of jurisdictions that substantially implement tax standards and has signed various Tax Information Exchange Agreements which are bilateral agreements under which countries agree to cooperate in tax matters through the exchange of information. The directors and shareholders of the Sub-fund Investment Manager/Advisor should obtain their own tax advice in relation to local tax law and regulation in the country in which it carries on its business.
Marketing restrictions on the offer and sale of shares in the Sub-fund
No restrictions apply to the investors under the laws of Bermuda. There is no limit on the investment amount for Sub-funds on the FAME Bermuda platform. The Sub-fund Investment Manager/Advisor should take advice in respect to the legal and regulatory restrictions that may apply in the jurisdictions into which they wish to offer their shares for sale. Generally the offering will be structured as a private placement to qualifying investors in those countries.
Money-laundering rules and regulations applicable to the Sub-fund
Apex Fund Services, the Administrator, is responsible for money laundering compliance and this involves verification of the investor’s identity and source of funds. Any failure or delay in an investor in providing the required information can result in refusal of its subscription application.