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Bermuda Set to Meet New EU Standards re: AIFM Directive


Date: Monday, January 24, 2011
Author: Business Wire.com

Business Bermuda looks forward to Bermuda’s regulatory regime meeting newly agreed EU standards under the Alternative Investment Funds Managers Directive ("AIFM Directive"), as announced by the European Parliament on 11 November 2010. Given Bermuda's status as one of the most compliant and best regulated jurisdictions worldwide, Business Bermuda welcomes the confirmation of the Directive's final terms as a very positive development for Bermuda’s investment fund industry. Bermuda's reputation as the premium offshore jurisdictions for fund domiciliation and fund administration is underpinned by a variety of key factors: Bermudan law is based on English Common Law, a system understood globally. The financial and fund services industries are regulated by the Bermuda Monetary Authority (“BMA”) to ensure sensible rules in place which meet or exceed international standards. Bermuda successfully completed the first phase of the peer review process conducted by the Organization for Economic Co-operation and Development (“OECD)” Global Forum on Transparency and Exchange of Information for Tax Purposes, meeting all the criteria identified by the peer review methodology, with recommendations. Bermuda’s peer review report was adopted by the full Global Forum membership, comprised of more than 90 jurisdictions, following a six-month review process covering all aspects of Bermuda’s legal and regulatory framework against ten identified essential elements. Bermuda also holds the position of Vice Chair of the OECD Global Forum Steering Group, and will host the 2011 Global Forum plenary. Bermuda has continued to demonstrate to the international fund management industry that it offers less bureaucracy without compromising the standards necessary to manage and grow businesses. Regulatory changes are only implemented after a process of consultation between the BMA and the businesses that it supervises. This approach has resulted in regulations which are innovative, and a governing framework which is purposeful rather than objective. Bermuda has earned the reputation for vigilance against those willing to use funds to launder their ill-gotten gains. The US state department has consistently placed Bermuda in the lowest risk category for being used to launder money or finance terrorism. Cheryl Packwood, Chief Executive Officer of Business Bermuda, commented: "Bermuda is already recognized by international bodies as being amongst the best regulated and most compliant jurisdictions worldwide. Therefore it can be said that Bermuda based funds and fund managers will be in an advantageous position as they will benefit from lower costs and practical efficiencies associated with the use of private placement regimes. A system which will no longer be available to EU based funds with EU based fund managers.” Peter Hughes, Group Managing Director of Apex Fund Services Ltd, commented: “Bermuda’s reputation and track record for upholding international standards in [investment fund] regulation, and its vigilance against money laundering are an example for all offshore jurisdictions. It continues to provide a regulatory framework in which business can continue to grow and prosper whilst maintaining a secure environment.” About Business Bermuda Business Bermuda is a business organization of Bermuda resident service providers and international businesses which provide quality banking, insurance, reinsurance, legal, accounting, financial, trust, management and e-commerce services and products. Business Bermuda works with the private sector and Government to develop and promote the island as one of the world’s foremost centers for international business. Business Bermuda Cheryl Packwood, 441-292-0638 Chief Executive Officer or Sloane & Company Whit Clay, 212-446-1864 wclay@sloanepr.com