Australian Exempt (from registration) Funds: A flexible solution for Family Offices and others promoting Private Funds / Unit Trusts.
What is an Australian Exempt (from registration) Unit Trust / Private Fund?
Australian Exempt Unit Trusts are an attractive alternative to the Isle of Man for family offices and others promoting Private Funds via Unit Trusts with lower costs and greater flexibility. Users of such Unit Trusts do need to be aware of the rules that govern them and extensive material is reproduced below to guide you in this with further legal opinion here.
An Australian Exempt scheme should only be promoted to wholesale investors, however, the administrators may also raise up to $2 million from a maximum of 20 retail investors in a 12 month period by way of personal offers. Of course, where a Custodian holds shares on behalf of retail investors the numbers can easily be elevated as high as necessary for your purposes. A program such as this has application to property funds, equity trusts, mortgage funds, cash management trusts, fixed interest funds, trusts with infrastructure assets, private equity funds and hedge funds.
An Australian Exempt Scheme is not required to appoint a custodian, nor have its financial statements audited. The fund is free to implement whatever arrangement is appropriate for holding its assets, whether through the use of a third party custodian (trustee), direct ownership or via special purpose vehicles to segregate separate asset classes.
Your profits are not going to be reduced because the overhead costs are dramatically lower, thus increasing your return.
We would like to form your Unit Trust / Fund in Australia to gain the advantage of this for you and we would also be keen to attend to the administration side for you. With our former managed funds background, since 1983, we are confident that we will not be found wanting. We can provide your Registered Office in Australia for just $295 per year. We can also act offshore as your Unit Registrar at competitive rates through our wholly owned International Custodians Corp.
Please remember that you do not need to be active in Australia to have an office there and your Unit Registrar may be located in any of a multitude of countries.
Advantages in Terms of Control and Privacy
Australian Exempt Schemes are attractive to family offices and high net worth individuals for a number of reasons, one of which is the ability to retain control of the assets themselves (or through their trusted professional advisers), by being appointed and acting as the Fund Administrator.
Another positive characteristic of an Australian Exempt Scheme using our International Custodians Corp is privacy.
Regulation is by the Fund Administrator, rather than by any regulatory regime.
Please email your interest to Click