Belize is a commonwealth nation located on Central America’s east coast. The country formally referred to as British Honduras is now largely considered as a central American/Caribbean independent nation with strong ties to both the Latin American and Caribbean regions. Belize is the only country in Central America whose official language is English.
Belize is known to have one of the best policies when it comes to mutual funds. The mutual law act 2000 is the county’s regulatory basis for the operation of mutual funds. In addition to this, there are several Regulations on the subject of mutual funds, and a wide range of Guidelines also issued by the Belize Registrar of Mutual Funds, which deals with the more excellent points of practical applications of the Mutual Funds Act.
The Act deals with three main areas, which are the registration of public funds, recognition of professional and private funds, and licensing of fund administrators and fund managers.
Under the Belize Mutual Funds Act, a mutual fund company is defined as a company incorporated, or partnership formed or a unit trust or other similar bodies that have been created or organized under the laws of Belize or of any other jurisdiction which pools funds for the collective investment and issues shares.
The Belize Mutual Funds Act distinguished three types of funds; they are the public funds, private funds, and professional funds.
The public funds are known to attract the highest degrees of regulations.
The Belize International Financial Services Commission must license all administrators and managers of mutual funds within Belize. Several criteria must be met by anyone requiring the Belize Funds license, the most important being that the license applicant must convincingly prove himself as a fit and proper person to be engaged in the proposed fund management business and equipped with adequate knowledge and expertise as well as required facilities necessary for the scope of the business being proposed.
To adhere to the regulation process, applicants must provide full details of the eventual beneficial owners of the application. This may include resumes and references of each beneficial owner to accurately evaluate the “fit and proper” status of the applicants. Complicated ownership will not be accepted. The head of the advisory committee (the minister) decides if they require any other documents to register for the Belize Funds License.
Those interested can also apply for the Belize Forex Brokerage license which is slightly different from the Belize funds license.