Panama Attorneys Advise Offshore Hedge Fund

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Panama Attorneys Advise Offshore Hedge Fund

Panama Attorneys Advise European investors forming Private Investment Fund

Attorneys
Lombardi Aguilar Group advised a group of European investors to file
before the Panama securities regulators a notice of compliance with
private investment fund provisions.

Panama City, Panama, May 26, 2010 —- Attorneys Lombardi Aguilar Group (http://www.laglex.com/) advised a group of European investors to file before the National Securities Commission (http://www.conaval.gob.pa/ – CONAVAL) of Panama a notice of compliance with private investment fund provisions. CONAVAL is the local securities regulator.

A
private investmend fund is a type of financial investment company which
generally exempt from most securities regulations and laws and are
included under the label of "hedge funds". As a form of transparency
for investors, Panama’s Law Decree 1 of 1998 allows private investment
funds to file their prospectus, background information about their
managers and other corporate documents before the local CONAVAL
regulator, as long as the company charter provides that: (1) the number
of owners of quotas or investors is limited to a maximum of fifty (50)
and any offers may be made only through private communications; (2)
securities can only be offered to qualified purchases and with minimum
investment amounts of USD100,000. The filing does not amount to a
registration with the Commission and these funds are not subject to the
supervision or scrutiny by the Commission.

The
fund is an open-ended private investment fund based in and managed from
the Republic of Panama. The main purpose of the Fund is to invest in
privately-issued shares of international asset management companies and
other similar companies (distributors and/or managers of funds,
securities brokers, etc.) outside of Panama. According to corporate
documents, the company has a capital is of 30 million euros. Its board
of directors has Swiss members and two partners of Lombardi Aguilar
Group serve as external directors.

Following
the local Panama securities laws, the Fund is professionally-managed by
another company incorporated in the Republic of Panama which has in
place proper risk management, monitoring and internal control
procedures. Such risk management process enables the management company
to monitor and measure, at any time, the exposure of the investment
positions and their contribution to the overall risk profile of the
fund portfolio. The Panamanian regulators will require the Management
Company to certify in each annual report of the Fund that the
procedures and controls for monitoring the management and risk of the
Fund are still in place as defined in the Prospectus filed with the
Commission.
Current regulations allow the fund to:

a. maintain liquidity in different currencies;

b. issue fully-covered currency options;

c. place deposits with a bank licensed in a foreign jurisdiction;

d.
invest in money market instruments or debt securities such as
government or international bonds, U.S. Treasury bills, bank
certificates of deposit, banker acceptances, floating rate notes,
commercial papers, asset-backed securities and repurchase agreements;

e. enter into deliverable or non-deliverable currency forward contracts;

f.
invest in privately-issued shares of international asset management
companies and other similar companies (distributors and/or managers of
funds, securities brokers, etc.).

Dr. Jorge Lombardi,
a partner at Lombardi Aguilar Group commented that "we were recommended
by colleagues in Switzerland to create and manage this fund, because of
previous succesful experience". The legal expertise of the firm and its
ability to provide counsel in several languages of the investors was
crucial to its selection for this assignment. "My full knowledge of the
Italian language was very useful as well as a tool to have a better and
fluent communication with the clients", said Lombardi. "The
beneficiaries of the fund are in Europe and our correspondents are in
Lugano, Switzerland, and after a series of conversations they were
convinced that Panama was the place to create it, and that our firm
provided the security, confidentiality and confidence they needed".
Lombardi is a graduate of Universidad Santa Maria la Antigua (LLB) and
University of Paris (3eme cycle, DED).

About Lombardi Aguilar Group
Lombardi
Aguilar Group is comprised of Lombardi Aguilar & Garcia and other
professionals. The Group was created as an alternative for clients
worldwide who seek fast, innovative and effective solutions to their
legal problems. The firm currently provides services to individual and
corporate clients in Panama as well in the Americas, Europe and Asia.
Its partners maintain a commitment with professional ethics and social
responsibility by participating in the board of directors of groups
such as the Panama Bar Association, the Alliance Francaise, the German
and the American Chambers of Commerce (AMCHAM) of Panama, and the
Association of Chinese-Panamanian Professionals (APROCHIPA).
The
firm centers its law practice in private client services and asset
protection (Private Interest Foundations, Trusts), business structures
(Offshore Corporations), tax planning, real estate and e-commerce. It
also advices in areas of Law such as Corporate, Commercial,
Intellectual Property, Maritime, Tax, and Immigration Law as well as
related litigation that may arise.

For more information, contact +507 340-6444, e-mail info (at) laglex.com, or see: Lombardi Aguilar Group http://www.laglex.com/

Keywords: Panama, offshore, hedge funds, private investment companies
http://www.prlog.org/10815190

Attorneys
Lombardi Aguilar Group advised a group of European investors to file
before the Panama securities regulators a notice of compliance with
private investment fund provisions.

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