Bermuda Monetary Authority Releases Annual Report

by Amanda Banks, Tax-News.com, London

25 July 2005

There was a 4.6% rise in the number of applications to set up a Bermuda entity in 2004 compared to 2003 according to the Bermuda Monetary Authority's annual report.

The report revealed that a total of 1,538 applications were received last year, of which 1,461 were approved, 24 refused and the remainder of which are still awaiting approval.

Meanwhile the net asset value of collective investment funds licenced in Bermuda jumped by 37% last year compared to 2003, reaching $158.18 billion, up from $115.84 billion.

However, there was a 16% decline in the number of insurance applications during 2004 compared the previous year. By the end of last year, there were 1,410 insurance companies registered in Bermuda, compared to 1,682 at the end of 2003. During 2004, the number of new insurance licence applications reached 83, of which 77 were approved.

According to BMA chairman and chief executive Cheryl Lister, last year saw the authority devote "a great deal of attention to the development of Bermuda’s financial legislative framework” as well as spending time on the development of "appropriate policy frameworks for supervision”.

The report also revealed that the BMA is still reviewing a recommendation by the International Monetary Fund that it become fully independent of government.

“These measures would remove the potential intrusion by the Minister on the operational independence of the BMA,” stated the report.

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