ISAE 3402 Type II Certification

VBK+CO have been awarded the International Standard on Assurance Engagements (ISAE) 3402 Type II Certification for internal controls and effective functioning over a defined period of time relating to fund accounting, investor relations services and the related IT controls.


The Vermilions are unique

The Vermilions is a fund administration and fund management network with a long history of serving clients both within the Europe and internationally. With roots tracing to 1985 and offices in Amsterdam, Dublin, Geneva, Luxembourg, Sofia (Bulgaria), Zurich, BVI, Cayman Islands, Naperville (USA) and Singapore.

The Vermilions refers to the global network and may refer to one or more of the member firms each of which are separate and independent legal entities. The Vermilions is a network empowered by VBK+CO Group Holding SA, Swiss Financial Services Ltd and PvB Pernet von Ballmoos AG. These are fully independent managed and independently owned firms.

The Vermilions is an independent provider of fund administration, fund management, accounting and compliance services to investment funds, family offices and corporate clients and administers, with over 100 staff, in excess of USD 17bn in investment funds and for family offices, representing a variety of strategies including long only, hedge fund, private equity, real estate, CTA and “fund of funds”.

We are The Vermilions :  Stronger, Bigger and Better


The Vermilions are the customers’ allies and as such we will uphold the importance of any client relationship. Working with us comes with the benefit of dealing directly with the managing partners of our companies: people who really pay attention, take ownership of issues and walk the talk.

Independent Minds

As boutique providers, The Vermilions bring together people who really like what they do. And it shows: in our can-do attitude and our energy to take matters into our own hands. It also means we can customize our services much more than any large corporate environment would allow.

Deeply Rooted

The Vermilions emphasize long lasting relationships not only towards our clients but also with our staff, our most precious asset. Our staff has been with us for years and we take pride in the accumulated skills, experience and the talent which we are able to offer to our clients. The great care The Vermilions exercise in selecting, developing and retaining talent gives our customers access to some of the most skilled professionals in the industry.


VBK+CO expanding with Luxembourg based Radices

VBK+CO grows its footprint by expanding its Fund Administration practice by acquiring an equity interest in Luxembourg based Radices Fiduciam SA (“Radices”)

June 5, 2018

VBK+CO, a global independent provider of fund administration, accounting and compliance services to investment funds, family offices and corporate clients announced today that it has acquired an equity interest in the Luxembourg based Radices.

Radices was established in 2008 and is supervised by the Commission de Surveillance du Secteur Financier (the “CSSF”), the supervisory authority of the Luxembourg financial sector. The firm has, amongst others, the status of Registrar Agent, Corporate Domiciliation Agent, Administrative Agent of the financial sector and Client Communication Agent. Radices is a niche player providing back office solutions to the Luxembourg alternative investment sector and its investors.

Luc Vuurmans, Managing Director of VBK+CO said “The acquisition is part of VBK+CO’s growth plan to expand its business in carefully selected jurisdictions to deliver a broader and stronger range of fund administration and corporate services, addressing the needs of fund management groups and international investors”.

The current management of Radices is composed of Gustave Stoffel and Jean Martin Stoffel. They will bring to VBK+CO their extensive experience within the Luxembourg market and expand the Luxembourg capabilities further in the future.

Dave Bos, Managing Director of VBK+CO commented “As we grow and expand our operations, we need to be where our clients want to do business. Luxembourg is that place and therefore constitutes a natural extension for us. It will be a key part of our network and an important hub for us to provide fund administration and corporate services”.

“We are very excited about our new opportunities with VBK+CO” said Jean Martin Stoffel, CEO of Radices. “We now offer through our association with VBK+CO on a global scale, unequaled experience and professionals in alternative assets, administration, compliance, accounting and financial statement assembly”.

The transaction has been approved by the CSSF and the firm in Luxembourg is now operating under the new name Radices VBK+CO (Luxembourg) SA.

About VBK+CO

VBK+CO has offices in Amsterdam, Geneva, Sofia, Mumbai and The British Virgin Islands and strategic partners in the UK and the USA. The firm is rendering fund administration, accounting, compliance and corporate governance services to investment funds, family offices and corporate clients. VBK+CO administers in excess of USD 12bn in investment funds and for family offices, representing a variety of strategies including long only, hedge fund, private equity, CTA and “fund of funds”.

VBK+CO is regulated by the Dutch Central Bank in The Netherlands, by the CSSF in Luxembourg and by the Financial Services Commission in the British Virgin Islands. The company has in place, on all its processes, an ISAE 3402 Type II audited by Deloitte. ISAE 3402 is a global assurance standard for reporting on controls at a service organization.

About Radices

Radices is a Professional of the Financial Sector in Luxembourg. Its principals have acquired over 40 years’ experience in the Luxembourgish financial sector and specialize in administration services offered to international investors, promoters and family offices active in the securities market, as well as in real estate and private equity management.

The firm was established in 2008 and is supervised by the Commission de Surveillance du Secteur Financier (CSSF), the supervisory authority of the Luxembourg financial sector.

CH: Swiss Funds and Asset Management Association – Statistics update 28 Feb 2015

The Swiss Funds & Asset Management Association (“SFAMA”) announced that as at 28 February 2015, the volume of assets placed in the investment funds covered by the statistics compiled by Swiss Fund Data AG and Morningstar stood at just under CHF 870 billion, an increase of around CHF 44 billion month-on-month. The net inflows totaled more than CHF 8 billion.

The volume of assets entrusted by investors in Switzerland to the fund industry came to CHF 868.0 billion in February 2015 (January 2015: CHF 824.2 billion). “The marked gains on
the equity markets saw fund volumes increase by some 5.3% in the month under review. The net inflows of money also persisted, with virtually all fund categories profiting from this. Even bond funds continued to enjoy inflows. This is likely to change soon since the historically low interest rates can scarcely satisfy the return requirements of many institutional investors any longer,” explained Mr. Markus Fuchs, CEO of SFAMA.

By comparison, the figures for selected indexes in February 2015 were as follows (January 2015 in brackets): Dow Jones 5.64% (-3.69%), S&P 500 5.49% (-3.10%), EURO STOXX 50 7.39% (6.52%), and SMI 7.51% (-6.55%). The CHF lost 2.71% against the EUR, and 0.21% against the USD.

Net new money totaling some CHF 8.1 billion was invested in funds in February 2015. Equity funds posted the strongest inflows (CHF 4,211.4 million), followed by bond funds (CHF 3,144.8
million), and asset allocation funds (CHF 1,238.4 million). The only categories to record net outflows were money market funds (CHF 911.5 million), and commodity funds (CHF 217.3 million). There were no changes in the ranking of the most popular asset classes: equity funds 40.92%, bond funds 30.91%, asset allocation funds 12.45%, and money market
funds 7.01%.


Switzerland: Media conference SFAMA – 5 Years after financial crisis

On 23 October 2013 the Swiss Fund & Asset Management Association (“SFAMA”) held an interesting media conference titled: Alternative Investments – 5 Years On From The Financial Crisis.


The 2008 financial crisis fundamentally changed the hedge fund and private equity business, or private markets activities for short, confronting the market with new business models, risk premiums, return expectations, investment processes, and discerning client behaviour. Coupled with this, there are additional challenges stemming from the field of regulation.


Malta: MFSA published its AIFMD guidelines

To update you on the latest developments on the implementation of the Alternative Investment Fund Managers Directive (AIFMD), coming into force with effect from 22nd July 2013, the Malta Financial Services Authority (MFSA) has published self-assessment questionnaires on its website for fund managers and self-managed collective investment schemes.

Depending on the business model, Alternative Investment Fund Managers (AIFM) are requested to determine, by completing the questionnaires, whether it can categorized as 1) an AIFM which activities require it to be re-licensed or opts to be licensed as an AIFM in terms of the AIFMD or 2) an AIFM which does not intend to opt to be licensed as an AIFM in terms of the AIFMD.

Existing license holders have a one year transitional period with effect from 22nd July 2013 so as to register as an AIFM not needing to be re-licensed or to apply for a full AIFM license and satisfy the requirements of the AIFMD.


Cayman Islands: En route towards AIFMD Compliance

Since the proposed introduction of the AIFMD (“Alternative Investment Fund Managers Directive”) by the European Union in late 2010, CIMA (“Cayman Islands Monetary Authority”) has been actively involved in the process leading up to the implementation of this directive, which is due to become fully effective in July of 2013.


BVI: Proposed amendment to BVI Business Companies Act

A proposal to amend the BVI Business Companies 2004 has been introduced in the BVI’s House of Assembly. The proposal, together with the BVI Business Companies Regulations 2012 has been published in the BVI Gazette. Changes are anticipated to become effective by the end of 2012.

Most of the suggested amendments are minor changes, where the most interesting changes are:

Company names

The amendment will make it explicitly clear that the Registrar, when considering whether to allow a company name, is not to be concerned with the legal rights any person or company has to the name or to the use of the names (regardless if this arises out of trade or service mark legislation in the BVI or elsewhere or under common law).

Foreign character names

The regulations contain a detailed provision for the registration of an additional foreign character name for a BVI company. This will require a notarized statement by a “person with the necessary competence” confirming the translation and meaning of the foreign character name when applying for registration.

Reuse company names

The regulations will allow for a company name to be reused once that BVI company has been dissolved (or moved from the BVI to another jurisdiction) after a period of seven years.

Voluntary liquidation

The amendment proposes that the liquidation of a solvent BVI company will commence on the registration with the Registry of a notice of appointment by the voluntary liquidator, rather than at the time of resolution to appoint the voluntary liquidator. In addition, the Regulations determine that BVI companies which are regulated entities (excl. funds) will be required to appoint a licensed insolvency practitioner as voluntary liquidator.

Restore company

The amendment proposes an application to restore a BVI company (e.g. by paying the outstanding license fees, etc.) will need to be made within 7 years of the company being struck off (opposed to current 10 years) before the company will be dissolved.
Listed company and funds regulations
The amendment will enable regulations to be made to exclude or modify the provisions of the Business Company Act in relation to listed BVI companies and BVI companies operating as funds.

These we feel are the most relevant proposals. Should you require more information on the proposals, please do not hesitate to contact your VBK account manager(s) or just post a response to this blog.


BVI: Approved Manager Regime – Attractive to start-up and mid-size BVI fund managers

Several clients have approached us with questions on the new “BVI Approved Manager Regime” and we decided to address the most common aspects here on the VBK Blog.

With the introduction in December 2012 of the “BVI Approved Manager Regime”, a new regulatory ‘light’ regime for managers incorporated in the BVI, and a simplified and faster application process, it is expected that this new regime will be attractive to start-up and existing mid-size managers. Prior to the new regulatory regime, all BVI managers of open-ended funds and closed-ended funds were required to be fully licensed under the provisions of the Securities and Investment Business Act, 2010 (SIBA) and therefore complying with the BVI’s Regulatory Code and anti-money laundering regime resulting in a disproportionate amount of regulatory compliance costs when comparing start-up and mid-size managers to those managing larger sums of investor money.


Switzerland: Is Switzerland still attractive?

Mr. Thierry Boitelle of Bonnard Lawson gave a very interesting presentation at the annual general meeting of TTN (“Transnational Taxation Network”) on 21 September 2012, held in Hotel de la Paix, Geneva, Switzerland.