IFSCA Notifies Revised Fee Structure for Fund Managers in IFSC

IFSCA CIRCULAR. F. No. IFSCA-AIF/104/2024-Capital Markets/08092025 dated 08.09.2025

1. Introduction

The International Financial Services Centres Authority (IFSCA) has rolled out a new fee structure for Fund Management Entities (FMEs) that wish to offer Third-Party Fund Management Services within the International Financial Services Centre (IFSC). This revised framework has been introduced to streamline the regulatory process and ensure transparency in compliance requirements for fund managers.

2. Application and Authorisation Fees

Under the new norms, FMEs applying for approval to offer third-party fund management services will need to pay an application fee of USD 2,500. Upon successful approval, an authorisation fee of USD 7,500 will be payable. These fees represent the initial compliance costs for FMEs entering the IFSC fund management ecosystem.

3. Annual Fees for Third-Party Fund Managers

Once authorised, FMEs will also be required to pay an annual fee of USD 2,000 for each Third-Party Fund Manager (TPFM) they serve. This ensures a recurring regulatory contribution proportionate to the number of TPFMs managed, thereby linking costs with the scale of operations.

4. Continuation of Other Regulatory Fees

IFSCA has clarified that all other regulatory fees applicable to FMEs will continue to be governed by the circular issued on April 8, 2025. This provides continuity and stability for FMEs already functioning under the existing framework, while ensuring that only the charges related to third-party fund management have been newly introduced.

5. Conclusion

The revised fee structure introduced by IFSCA aims to balance regulatory oversight with ease of doing business. By defining application, authorisation, and annual fees clearly, the Authority ensures greater transparency, predictable compliance costs, and a supportive environment for fund management activities in the IFSC. This move is expected to encourage more FMEs to expand their operations while maintaining high governance standards.

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