Regulation & Structure
Mutual funds in the Caribbean are governed by country-specific legisla-tion and regulations that reflect the objectives and concerns of the host country. They are required to fulfill all of the obligations related to licens-ing, reporting, audit, and operation that are prescribed in the legislation, and are generally regulated by a some regulatory body established to over-see the securities industry within the country.
Most funds in the Bahamas are structured as investment companies, complete with a Board of Directors, an Investment Manager, a Custodian, an Administrator, and an Auditor, all of whom perform important and spe-cific roles for the fund. The company itself is governed by the parameters established in its Memorandum and Articles of Association.
Oversight of the ongoing operations of a mutual fund is accomplished through the appointment of a Board of Directors. The board usually con-sists of reputable individuals who are either associated with the sponsoring company or who provide sufficient expertise in a particular area to assist with the ongoing evaluation and supervision of a fund’s operations.
As with other non-mutual-fund companies, the Board of Directors meets on a regular basis to review the fund’s operations and financials, and to address any related issues.
The Board is ultimately responsible for all the activities of the fund.