FUNDS IN THE NETHERLANDS ANTILLES (II)
How does the regulatory environment support the funds industry?
A new regulatory regime (new investment fund supervision regulations, corporate service providers rule and new anti-money laundering rules) provides comfort to investors. Curacao is not (and never has been) listed on any international blacklist (OECD, FATF). The Curacao regulator, the Central Bank of the Netherlands Antilles, is a very sophisticated supervisory authority based on and partly trained by it’s Dutch equivalent.
The regulatory regime focuses on full and transparent disclosure, both in the offering documentation and the regulatory authority. This enables prospective investors to make a thorough and informed decision whether or not to invest. In general, all funds established in Curacao should be licensed. However, there are many exclusions, exemptions and dispensations available from the license requirement (e.g. for professional investors). If a fund benefits from one of the exemptions, no mandatory rules as to the contents of offering documentation exist. Another highlight is that the Netherlands Antilles does not have regulatory restrictions on investment policies or strategies. Both open- and closed-end funds are possible, as well as master-feeder arrangements and umbrella constructions.
In addition, transaction documentation does not have to be governed by Netherlands Antilles law and can be governed by any law. Moreover, (transaction) documents, including the articles of association, can be drafted and filed in almost any language. Furthermore, there are no regulatory restrictions on commercial terms (including performance and other fee arrangements).
Karel Frielink
Attorney (lawyer) / Partner
