BSX On Verge Of Gaining Official Recognition From UK Authorities

by Amanda Banks, Tax-News.com, London

14 September 2004

The Bermuda Stock Exchange is expecting to receive official accreditation from the UK authorities later this year after the passing of key legislation in the jurisdiction some weeks ago, a local media report has revealed.

The BSX first applied for Designated Investment Exchange status from the UK financial regulator, the FSA, and Recognised Stock Exchange status from the UK tax collector, the Inland Revenue some years ago.

However, the granting of DIE status has been delayed whilst Bermuda passed laws criminalising insider trading market manipulation. This was achieved in July with the passing of the Criminal Code Amendment Act 2004.

“From the FSA’s point of view the BSX has the proper framework in place and now that is reinforced by the legal framework in Bermuda so as we speak they are reviewing our DIE application and we are hoping that by October or November it goes through,” observed President and Chief Executive Officer of the BSX, Greg Wojciechowski, according to the Bermuda Sun.

Designation as a Recognised stock Exchange by the Inland Revenue is also anticipated in the near future. This will give any Eurobond listed on the BSX the same exemption from withholding on interest payments that currently exists at EU exchanges.

“Our regulations do contemplate the listing of Eurobonds and we have had numerous inquiries from big houses both in the US, the UK and in Europe about listing these structures in Bermuda.” Mr Wojciechowski was quoted as saying.

He added that the new designation will help drive growth for the BSX.

“We’re still a newcomer in the grand scheme of things but it makes those people looking for an alternative to Luxembourg and Dublin a lot more comfortable,” he stated.

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