Fund Administration

This article compares offshore hedge funds and domestic hedge funds. It provides guidelines for hedge fund managers to legally administer an offshore U.S. hedge fund.  The Internal Revenue Service is careful to ensure that fund managers do not illegally seek offshore status to avoid taxes.  In order to ensure that a U.S. administered hedge funds legally qualifies for offshore status the U.S. Treasury has ten guidelines.  The so-called “10 Commandments” for offshore status:

• Formal communication with investors.
• Communications with the general public.
• Investment solicitation.
• Accepting and processing investments.
• Corporate records and accounting.
• Audit.
• Disbursements.
• The publishing of net asset per share.
• Board and shareholders’ meetings.
• Investment redemption

Source: Giebers