Bermuda To Meet New EU Fund Standards
Bermuda’s financial regulatory regime is set to meet newly agreed standards under the Alternative Investment Funds Managers Directive announced by the European Parliament in November, Business Bermuda told “Hedge Week” magazine today [Jan. 21].
Given the island’s status as one of the most compliant and best regulated jurisdictions worldwide, Business Bermuda CEO Cheryl Packwood told the leading industry journal she welcomes the confirmation of the directive’s final terms as a very positive development for Bermuda’s investment fund industry.
Formerly the Bermuda International Business Association, Business Bermuda is an organisation of Bermuda-resident service providers and international businesses which provide quality banking, insurance, reinsurance, legal, accounting, financial, infrastructure, e-business, trust and management services, and products.
Business Bermuda works with the international business industry and Government to develop and market Bermuda as one of the world’s foremost centres for international business.
“Hedge Week” said Bermuda’s reputation as a premium offshore jurisdictions for fund domiciliation and fund administration is underpinned by a variety of key factors.
Chief among them is the fact Bermudian law is based on English Common Law, a system understood and used globally. And the financial and fund services industries are efficiently regulated by the Bermuda Monetary Authority (BMA) to ensure sensible rules in place which meet or exceed international standards.
Bermuda successfully completed the first phase of the peer review process conducted by the Organisation for Economic Co-operation and Development Global Forum on Transparency and Exchange of Information for Tax Purposes, meeting all the criteria identified by the peer review methodology, with recommendations.
Bermuda’s peer review report was adopted by the full Global Forum membership, comprised of more than 90 jurisdictions, following a six-month review process covering all aspects of Bermuda’s legal and regulatory framework against ten identified essential elements. Bermuda also holds the position of Vice Chair of the OECD Global Forum Steering Group, and will host the 2011 Global Forum plenary.
Bermuda has continued to demonstrate to the international fund management industry that it offers less bureaucracy without compromising the standards necessary to manage and grow businesses, said Ms Packwood.
Regulatory changes are only implemented after a process of consultation between the BMA and the businesses that it supervises. This approach has resulted in regulations which are innovative, and a governing framework which is purposeful rather than objective.
Bermuda has earned the reputation for vigilance against those willing to use funds to launder their ill-gotten gains. The US State Department has consistently placed Bermuda in the lowest risk category for being used to launder money or finance terrorism.
“Bermuda is already recognised by international bodies as being amongst the best regulated and most compliant jurisdictions worldwide,” said Ms Packwood. “Therefore it can be said that Bermuda based funds and fund managers will be in an advantageous position as they will benefit from lower costs and practical efficiencies associated with the use of private placement regimes.
“A system which will no longer be available to EU based funds with EU based fund managers.”
Peter Hughes, group managing director of Apex Fund Services told “Hedge Week”: “Bermuda’s reputation and track record for upholding international standards in [investment fund] regulation, and its vigilance against money laundering are an example for all offshore jurisdictions. It continues to provide a regulatory framework in which business can continue to grow and prosper whilst maintaining a secure environment.”
