BSX CEO: 60/40 Rule A ‘Positive Development’

July 27, 2012

Bermuda Stock Exchange’s [BSX] CEO Greg Wojciechowski welcomed the easing of the 60-40 rule as a “positive development for the domestic capital market.”

Mr. Wojciechowski said, “This is a significant step forward in the modernization and further develop of Bermuda’s domestic capital market. This development underscores the Government’s recognition that a healthy and vibrant domestic capital market and a healthy and vibrant domestic economy are inextricably linked.

“Healthy markets help support capital formation for companies to allow them to grow, enhance or develop new products or services which in turn benefit consumers and through corporate growth provides employment opportunities for a country’s workforce.

“Healthy markets also provide a key source of capital for smaller and medium sized companies which are the entrepreneurial engines of economic growth.

“The introduction of amendments to the Companies Act which establishes a mechanism through which the transferability of a listed public company’s shares are free of restrictions mirrors internationally accepted principles that underpin modern capital market and stock exchange operation.

“I welcome the Government’s commitment to the continued development of Bermuda’s domestic capital market and its tenacity in driving a process forward that began in the 1990’s when Bermuda’s domestic bank shares were permitted to freely float.

“Significant changes such as these do not happen overnight or without serious analysis and consultation. In this regard I would be remiss if I didn’t acknowledge the efforts of the Ministry of Business Development & Tourism’s Business Development Unit (BDU).

“During the last year, the BDU through direct efforts and those of specific task forces have engaged stakeholders and the private sector to understand the benefits and implications of these structural changes. Using that information the BDU and the Ministry designed a policy model of modernization which was articulated through the skillful drafting of the Parliamentary drafting team.

“The result has been an elegant solution that relies on the powers in the Companies Act and the regulatory oversight and information disclosures of designated stock exchanges to deliver a solution that further modernizes the domestic capital market, retains ownership protections for companies that wish to have them and permits publicly listed and reporting companies the option and freedom to seek capital on a global scale as they see fit.

“It has been said that Bermuda punches above its weight on the world stage which is evidenced by the success the country has had in the international business arena. This development clearly articulates that Bermuda is committed to ensuring that our local capital market mirrors this sophistication and is efficient, modern and deploys internationally accepted standards of regulatory oversight and freedom of access to capital.”

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  1. Future says:

    What an eloquent way to say we are about to get pimped.