BSX Gains Official Recognition From UK Regulator

by Amanda Banks, Tax-News.com, London

04 August 2005

The Bermuda Stock Exchange (BSX) has announced that it has been granted Designated Investment Exchange (DIE) status by the UK Financial Services Authority (FSA).

The designation by the FSA, which is effective from September 1, 2005, has been described by the BSX as a further endorsement of Bermuda's regulatory structure by onshore regulators and has been described as a "tremendous step forward" for both the exchange itself and Bermuda's financial services industry as a whole. The announcement comes soon after the granting of Approved Stock Exchange status by the Australian tax authorities in June this year.

“The Council of the Exchange is delighted by the FSA’s decision to grant the Exchange DIE status," commented BSX Chairman David Brown.

"This very important designation is a significant development for both the Exchange and Bermuda’s financial services industry. This, and other international recognitions granted to the BSX, reflect the tireless work undertaken by the Exchange and Bermuda’s regulators to ensure that a regime of internationally accepted regulatory and operating standards is implemented and practiced in Bermuda," he added.

Meanwhile, Greg Wojciechowski, President & Chief Executive Officer, observed that: "In our view, designation by the FSA not only represents a significant milestone but a crucial development in the global regulatory recognition of the BSX.”

He went on to explain that: “In addition to very closely scrutinizing every aspect of the Exchange’s regulatory and operating infrastructure, including financial resources, investor safeguards and monitoring and enforcement procedures, the FSA had to be satisfied that the jurisdiction of Bermuda upheld internationally accepted regulatory standards."

"During the application process the FSA provided very useful input in respect of the development of our capital market and financial services regulation in Bermuda. We are very confident that the regulatory regime, which is the foundation of Bermuda’s financial services industry, is modern, efficient and completely in accordance with internationally accepted regulatory practices.”

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