REGULATORY CHANGE IN
BERMUDA: AN INDUSTRY
PERSPECTIVE
 NEIL GLASS – GROUP LEADER, ASSET MANAGEMENT
Why Bermuda Created A New Fund Class

In Fall 2013, Bermuda took a bold step to modernize its fund legislation.

Create a new ‘user friendly’ investment fund class that can be registered
and launched via a streamlined process.

Executed through the collaboration of the Bermuda Monetary Authority
(BMA), Government of Bermuda, Bermuda Business Development Agency
(BDA) and key contacts with Bermuda’s fund industry.

Funds could be launched on a fast-track basis using the BMA’s online
system ERICA.

Demonstrated Bermuda’s responsiveness to market by enabling a fund to
register and launch faster, more efficiently and cost effective.
Investment Funds Amendment Act 2013
Self Declared Exempt Funds – Same Day Registration
1. Class A Exempt Funds - targeted to qualified
participants.
2. Self Certification- No regulatory approvals.
Electronic filing of Certificate and Offering
Document only with the Bermuda Monetary
Authority (“BMA”).
3. Immediate launch.
Class A Exempt Fund: Qualified Participants
1. High income private investors.
2. High net worth private investors.
3. Sophisticated private investors.
4. Institutional investors.
Class A Exempt Fund: Investment Manager
1. Authorized by the BMA, the SEC or by other foreign
regulator recognized by the BMA.
OR
2. Gross assets under management individually or as
part of a group of at least $100 Million Dollars and
carrying on business in a jurisdiction recognized by
the BMA.
Class A Exempt Fund: Fees ( in US$)
1. BMA Initial/Annual filing fee
2. Registrar of Companies Incorporation fee
$1,500
1,995
3. Tax Assurance certificate
170
4. Certificate of Incorporation
277
5. Registrar of Companies Filing fee
6. Non-Licensed Person fee (AML)
Total Fees to Launch:
82
930
$4,954
Investment Funds Act 2006: Class B Exempted Fund
1. New Class B Exempted Fund.
2. Existing Exempted Funds Grandfathered.
3. Subject to Approval Process.
Investment Funds Act 2006:
Standard, Authorised and Institutional Funds
1. Standard Fund. Retail. Overview.
2. Administered Fund. Local fund admin requirement.
Overview.
3. Institutional Fund. Minimum investment of
US$100,000 or a qualified participant.
Private Equity Funds: Not Subject To IFA
1. Private Fund Exclusion: private offer to less than 20
investors.
2. Closed Ended Funds. No investor redemption rights.
3. Limited Partnership. No Bermuda GP required.
Updates and Future Initiatives
1. US-Bermuda FATCA IGA Model 2 signed.
2. UK-Bermuda FATCA IGA Model 2 signed.
3. AIFMD: Co-Operation Agreements signed.