BMA Chief Proposes Hedge Fund Regime Change

by Amanda Banks, Tax-News.com, London

19 February 2004

In a recent speech, Cheryl Ann Lister, Chairman and CEO of the Bermuda Monetary Authority, noted the need for “far reaching” changes to certain aspects of the jurisdiction's regulations regarding the hedge fund industry.

Addressing delegates at a recent Bermuda International Business Association (BIBA) meeting, Ms Lister acknowledged that whilst the island had been successful in developing an alternative investments industry, there were certain areas in which the 1998 regulatory framework was falling short.

Among the “far reaching” changes proposed by the BMA chief are a new primary statute that will regulate pooled funds, which Lister argued would improve the way in which these funds are governed under the current BMA Act.

The reforms would introduce a licensing system for fund managers, although from an institutional standpoint, the BMA notes that regulation will be “much lighter”.

In a bid to win a larger share of the growing hedge fund industry, the BMA has been proactively selling the jurisdiction by sending representatives to major international financial centres such as New York and London over the past twelve months.

In May of this year, the island is also to play host to a major hedge fund conference expected to attract around 250 participants, and high profile sponsors such as Lehman Brothers and Citibank.

Recommended