Bermuda makes it easier for funds to set up

Date: Tuesday, December 19, 2006

BOSTON, Dec 19 (Reuters) - Bermuda, already a popular home for hedge funds because of generous tax breaks, enacted a new law designed to help the island become an even more popular investment center, an industry association said on Tuesday.

Bermuda's House of Assembly, the country's lower house of Parliament, passed the Investment Funds Act 2006 last week, making it easier to register and license funds by eliminating unnecessary administrative procedures, the Bermuda International Business Association said in a statement.

The new law clearly defines the minimum requirements to be met by fund operators and sets the rules for appointment of service providers as well as for filing prospectuses, the association said. Moreover, the new law also covers partnerships, which were excluded earlier, it said.

"There will be less time required to set up a fund as the rules are more clearly stated," the association quoted Finance Minister Paula Cox as saying.