The Hosting Concept – Scotstone Group Limited

The use of fund hosting services is a fast-growing concept in the financial services.

Our concept offers a plug and play solution for smaller fund managers who are finding the costs of setting-up their own funds to be prohibitive and a minefield of different regulatory requirements.

Scotstone is able to offer hosting solutions in Malta and Cayman.

The benefits are considerable in terms of cost as well as the ongoing management of the fund in terms of corporate governance, the provision of directors and dealing with the respective regulators.

All the fund managers have to concern themselves with is ensuring that the fund is invested correctly and of course the performance.

Scotstone Group Ltd has a number of fund hosting platforms in Malta and the Cayman Islands. We are also able to look into offering such a service in Dublin and Luxembourg, subject to certain requirements.

It is important to note that Scotstone Group Limited does not get involved in capital raising for its hosted funds.

Scotstone Group Limited can also assist you with:

Handling the submission of the documentation required
Managing on an ongoing basis regulatory and fund administration duties
Monitoring compliance and risk management requirements
Supervising trade execution and money management issues
Negotiate the best conditions with all service providers:
o Investment Platform
o Fund Management
o Fund Structuring
o Risk Management
o Compliance
o Fund administration

Which will allow you to concentrate on asset and portfolio management.

Recognised Incorporated Cell Company (RICC) Structure

Scotstone RICC Limited is a Malta based recognised incorporated cell company where we offer fund managers/promoters the ability to launch their fund (also known as incorporated cell (IC)) in a completely legally segregated manner. There are various advantages such a structure can offer to fund managers/promoters, such as the following:

Provision of administrative services related to the establishment of incorporated cells or funds;
Procurement of external service providers to the fund and coordination of regulatory approval of any changes thereto;
Negotiation of service provision agreements and changes thereto;
Submission to the Malta Financial Services Authority (MFSA) of any changes or amendments to model agreements and submission of any new model agreements negotiated with service providers for the approval of the MFSA;
Signature of tripartite agreements between service providers, the RICC and an IC based on ‘pre-approved’ model agreements;
Standardisation of any other documentation to be used by ICs/ funds;
Approval and joint signature of any applications for licences (including variations, extensions thereof) to be submitted by or on behalf of ICs which are in the course of being formed;
Provision of written declarations identifying any changes to model agreements already submitted to the MFSA;
Provision of ancillary services as may be required by the IC/ fund (subject in all cases to MFSA approval).

A key advantage of a RICC platform is the ‘standardisation’ of fund documents, such that functionary agreements and regulatory consents in respect of standardised fund documentation will be in place upon the setting up of the RICC platform structure and accordingly a new cell/ fund can be added at a fraction of the time that would be required were the fund to be established from scratch as a ‘stand-alone’ entity.