Wednesday, 22 March 2017
Last updated 21 hours ago
Oct 7 2013 | 1:27pm ET
Want to establish a hedge fund in a hurry? Consider setting up shop in Bermuda.
The country has amended its Investment Funds Act 2006 to create a new self-declared exempt fund which guarantees same-day registration.
Registration of Exempt Class A Funds can be fast-tracked provided the investment manager setting up the fund is regulated by a recognized authority (the U.S. Securities and Exchange Commission, the UK's Prudential Regulatory Authority or Bermuda's own Investment Business Act) or has at least $100 million of assets under management. The funds must be offered only to sophisticated investors.
Exempt Class A funds can be launched after the manager has completed and filed an exemption notification and offering memorandum with the Bermuda Monetary Authority through its electronic filing facility ERICA. The fee for filing is $1,500. The fund must also have various service providers such as a prime broker, auditor or fund administrator and a local representative with access to financial information.
“Through extensive consultation with the Bermuda Monetary Authority and ongoing dialogue with investment management leaders who attended the BBDC’s Asset Management Summit in May 2013, the Bermuda Government passed the legislation to create a new ‘user friendly’ investment fund class that will enable an investment fund to register and launch in Bermuda within a faster timeframe through a more streamlined process. We believe this will provide a significant competitive advantage in attracting hedge funds,” said Bermuda's minister of economic development, E. Grant Gibbons, in a statement.
Bermuda also amended its Exempt Class B Funds by eliminating the requirement that fund administrators be recognized and the requirement to file changes in any service providers to the fund, but added a minimum level of investment of $100,000 by qualified investors.