BUSINESS EXPANSION SCHEME (BES)

The sole function of the Minister for Enterprise, Trade and Employment in relation to BES funds is to ensure that the prospectus and publicity material for a fund give prospective investors the information required to make an objective decision when deciding to invest in a particular fund. The Minister has no function in relation to fund managers. The Minister, under Section 5 of the Designated Investment Funds Act 1985 must approve the prospectus.

Section 3 of the Designated Investment Funds Act 1985, sets out the requirements regarding trustees under the Scheme.

Fund managers of designated funds are approved by Irish Financial Services Regulatory Authority (IFSRA) under the Investment Intermediaries Act 1995.

The Revenue Commissioners look after the tax elements.

For information on the requirements for the approval of the BES prospectus, see Requirements regarding prospectuses.

Ultimately responsibility for assessing the bona fides of a particular fund rests with the investor.

The Finance Act 2002 extended the termination date of the Scheme to 31 December 2003 and increased the amount companies could raise from 317,434 euro to 750,000 euro.