CURACAO FUNDS AND ADMINISTRATORS
Statutory requirements applicable to the organizational and legal structure
The National Ordinance on the Supervision of Investment Institutions and Administators (Landsverordening regelende het toezicht op beleggingsinstellingen en administrateurs; NOSIIA) provides for a regime of supervision for investment institutions and administrators with the objective of an adequate operation of the financial markets and the protection of investors in such markets.
With regard to the business operation of a local fund that operates within the scope of the NOSIIA it provides for requirements applicable to the organizational and legal structure as expressed in the fund’s constitutive documents. Such requirements address the conditions of management of the fund and safekeeping of the fund’s assets. Such requirements are amongst others the following.
The fund’s management company needs to be a legal entity. This is because the assets of the fund’s daily management and the assets of the fund itself have to be separated and have to remain separated.
Furthermore the fund’s assets must be entrusted for safe-keeping with an independent custodian. Such custodian must also be a legal entity. Such custodian also plays an important role in the investment management of the fund’s assets. Under the NOSIIA, it is the custodians responsibility to act in the interest of the participants of the fund and to see to it that the management of the fund acts in accordance with the constitutional documents of the fund.
Karel Frielink
Attorney (Lawyer) / Partner
(5 October 2012)
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