The asset management landscape in Bermuda is undergoing some revolutionary changes. As a result of an energetic collaboration between the Government of Bermuda, the Bermuda Monetary Authority (BMA) and industry, following close consultation with investment management and industry leaders in the US, we are delighted to announce the creation of a new exempted fund (created by the Investment Funds Amendment Act 2013 (IFA)) which allows funds meeting certain suitability requirements to commence business faster.

Highlights from the IFA include:

  • Introduction of a new class of fund - Class A Exempt Fund (Class A) that is exempt from the requirement of authorisation and supervision. The Class A must be an investment fund that is offered only to qualified participants and the investment manager must:

a. be authorised or licensed by a foreign regulator recognised by the BMA, such as the SEC or the UK's Financial Conduct Authority; or

b. be licensed under Bermuda's Investment Business Act; or

c. have assets under management (AUM) of not less than $100 million (group test also available).

  • Faster speed-to-market - the Class A can commence operations immediately upon filing a certification form and the fund's prospectus with the BMA. The filing is completed online via the BMA's electronic filing system "ERICA". No further approval is required from the BMA.
  • Cost efficient - the filing fee for the Class A is $1,500.
  • Alternative exempt fund class - a new Class B Exempt Fund is also available for investment managers who do not have a minimum AUM of $100 million. Such funds can still take advantage of Bermuda's highly respected business friendly environment while remaining exempt from the requirement of supervision.

We see this as a very positive and welcome change to the industry.

For more information, please click on the brief.

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