Professional CIS (PCIS)
Is an investment fund incorporated as a body corporate and authorised as a PCIS to offer its shares to Sophisticated investor or through private placements at a subscription or purchase representing at least USD200,000 per investor and where there is no publicity is made during the offering.
What is a Sophisticated investor?
A Sophisticated investor means:
- the Government of Mauritius;
- a statutory authority or agency established by an enactment for public purpose;
- a company, all the shares of which are owned by the Government of Mauritius or a Government agency;
- the Government of a foreign country, or an agency of such Governement;
- a bank;
- a CIS manager
- an insurer
- an investment adviser; or
- a person declared by the FSC to be a sophisticated investor.
A PCIS can be established as an open-ended or a closed-end fund and is exempted from certain stringent provisions if it is not listed fro trading on a securities exchange and subject to the shares acquired by the participants cannot be resold to the public.
The PCIS being exempted from provisions of Parts II to X of the Regulations means that it will NOT be subject to certain conditions such as:
- the minimum funding representing 5% of total amount raised from investors to start operating the scheme,
- time limitation to onboard investors,
- obligation to appoint a custodian (depending on underlying investments),
- obligation to appoint a CIS manager (PCIS can be self-managed),
- restriction to acquire real estate,
- restriction to purchase a mortgage,
- restriction to hold more than 10% illiquid asset, and
- other restrictions.
Where a PCIS is self-managed, it is deemed to be managed by its board of directors and will be subject to the same conditions prevailing to a CIS manager. The board will then be allowed to:
- conduct all administrative services required by the PCIS;
- provide registrar and transfer facilities;
- distribute the securities of the PCIS;
- maintain accounting records;
- give investment advice in relation to the PCIS; and
- manage the portfolio.
The board may appoint a fund administrator, investment advisors, independent financial advisors and other advisors to assist in its fund management duties.
A PCIS is commonly used as private equity funds.