The Investment Condominium (ICON) continues The Bahamas’ commitment to bringing to market client responsive legislation. The ICON provides an alternative legal structure for investment funds.
The ICON is the legal structure underpinning the investment fund in the same way as investment funds are legally organized as companies, exempted limited partnerships and unit trusts. The ICON’s purpose is tied to its operation as an investment fund and is defined as the contractual relationship subsisting between participants agreeing to the pooling of assets for the purpose of investing those assets collectively. It possesses no distinct legal personality save that for the purposes of the legislation it is able to hold assets in its name; enter into agreements in its name; and sue and be sued in its name. The lack of legal personality is addressed by the appointment of an administrator that is empowered to transact in its name, and represent and bind the ICON.
A unique feature of the Investment Condominium Act is the provision for other types of entities - e.g. companies, unit trusts and exempted limited partnerships - to convert to an ICON by following a defined procedure. The ICON demonstrates The Bahamas’ keen understanding of the regulatory environment and the needs of the clients we service.