Bermuda Streamlines Fund Incorporation Process

by Amanda Banks, Tax-News.com, London

30 March 2005

Bermuda’s Finance Minister, Paula Cox has pledged to simplify the incorporation procedures for new investment funds in an attempt to increase the attractiveness of the jurisdiction to mutual funds and hedge funds.

According to a report by the Royal Gazette, new funds will no longer need the Minister's permission to incorporate in Bermuda, nor will they be required to undergo the full classification process before incorporation.

The move brings Bermuda more into line with other offshore fund domiciles such as the Cayman Islands and the British Virgin Islands, both of which have been successful at attracting investment funds in large numbers.

A recent government statement indicated that the collective investment schemes will be designated as unrestricted companies under the Companies Act.

The changes to fast-track fund incorporations have come about following a meeting between the Finance Ministry, the Bermuda Monetary Authority and a CIS sub-committee of the Bermuda International Business Association, according to the Royal Gazette.

"There is a keen willingness by the Ministry to ensure that the right balance is struck so that there is the requisite regulatory oversight coupled with a need to ensure that Bermuda maintains its competitive position as a premier financial services jurisdiction," Cox noted.

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