The International Financial Services Centres Authority (IFSCA) on March 11, 2024, issued the notification regarding Clarifications in relation to Fund Management Entities and Schemes set up in IFSCs by Sovereign Wealth Funds.
The following has been stated namely: -
• Clarification has been provided with respect to Sovereign Wealth Funds desirous of setting up FMEs and schemes in IFSC, wherein the Sovereign Wealth Fund is the ultimate contributor and beneficiary.
• The following has been stated namely: -
o The requirement of appointment of an independent custodian shall not be applicable to open-ended Restricted Schemes and all other schemes with AUM above USD 70 Million
o The requirement of having the office space of the FME to be dedicated, secured and accessible only by authorised person(s) of the FME is relaxed to the extent that the FME and trustee of Scheme(s) set up in the form of trust, may occupy the same office space if their services are not offered to any third-party.
This circular shall come into force from March 11, 2024.
[Notification No. IFSCA-IF-10PR/1/2023-Capital Markets/3]
