IFM12434 | Offshore Funds: Reporting funds: duties of reporting funds: general duties of reporting funds

Regulation 58 of SI 2009/3001 (“the Regulations”)

On being approved as an offshore fund, a fund has to meet certain obligations to both its UK investors and HMRC to continue to be approved as a reporting fund for each reporting period.

In particular reporting funds are required to -

• prepare accounts in accordance with the requirements of Chapter 4 (except in the case of transparent reporting funds) of Part 3 of the Regulations (see IFM12436 onwards);

• provide a computation of their reported income in accordance with the requirements of Chapter 5 (or 6A as the case may be) of Part 3 of the Regulations (see IFM12500 onwards);

• provide reports to participants in accordance with the requirements of Chapter 7 of Part 3 of the Regulations (see IFM12600 onwards); and

• provide information to HMRC in accordance with the requirements of Chapter 9 of Part 3 of the Regulations (see IFM12630 onwards).

Amendments to the Regulations in 2011 provided for an exception to prepare accounts in accordance with the specific requirements of chapter 4 in respect of reporting funds which are transparent funds (see regulation 49(3) although audited accounts as prepared must still normally be supplied with the report to HMRC (regulation 106(1) and (3)).