Bermuda: BeesMont Law Guide To Investment Funds


Over the years Bermuda has developed a highly regarded reputation and position as a substantive international financial centre with a strong focus on financial stability coupled with effective and efficient supervision and regulation for both local and international business. Through the efforts of the Government and highly skilled professionals from the legal, accounting and financial services fields and the oversight of the Bermuda Monetary Authority (BMA), Bermuda is committed to providing open, transparent regulatory frameworks and requirements, which are consistent with international best practice.

Underpinning the supervisory work programme is the BMA's risk-based philosophy which ensures that standards are appropriately calibrated to Bermuda's wholesale and domestic financial markets and that supervisory resources are applied to those firms which pose the greatest risk. The BMA's sensible and effective regulation of the investment industry provides suitable transparency and disclosure conditions which make Bermuda a globally respected jurisdiction. Further Bermuda has since the 1940s had legal requirements under its Exchange Control legislation to provide information on beneficial ownership of companies registered in Bermuda.

Bermuda is a tried and tested jurisdiction with a Government based on the Westminster system, with English common law and recourse to the Privy Council. Bermuda also has a specialist commercial division of the Supreme Court of Bermuda which offers a more bespoke service to commercial users of the courts. Bermuda therefore has specialist court rooms and specialist commercial judges with experience of all kinds of commercial disputes but particularly fund and insurance cases. Bermuda has adopted the English concept of "overriding objective" for commercial parties which is designed to ensure expeditious and proportionate justice. The commercial court has considered a wide range of fund disputes and most cases have been satisfactorily resolved at first instance with very few appeals to the Court of Appeal of Bermuda (which sits 4 times per year) and no investment fund appeals to the Privy Council.

Bermuda has access to capital and talent. It is the World's largest captive insurance centre and the third largest reinsurance market (after the USA and the UK) and more recently Bermuda has become globally the leading market for insurance linked securities (ILS). Furthermore, Bermuda has decades of experience in the banking, trust and asset management industries. As a consequence, Bermuda offers a deep talent pool of experienced and internationally trained professional service providers, which include fund administrators, asset managers, wealth managers, telecommunications providers, accountants, bankers and independent directors. Bermuda is a full service "one stop shop" jurisdiction enabling the Bermuda domiciled fund to be managed, administered, audited, listed and regulated all on the island. Bermuda's modern infrastructure enables clients to structure their funds so as to have all key players in one place allowing for streamlined daily operations and oversight.

Bermuda is a major centre in the international offshore investment funds industry with over US$165 billion of fund assets domiciled in Bermuda and a strong stable of fund structures listed on the Bermuda Stock Exchange (BSX) which was founded in 1971. The BSX is also the global leader in the listing of ILS offerings which have an aggregate market capitalisation of about US$13.5 billion. Several larger Bermuda based funds are quoted on leading international stock exchanges such as the Hong Kong Stock Exchange, Australian Stock Exchange, Singapore Stock Exchange and London Stock Exchange. The BSX is a fully electronic trading, settlement and depositary exchange and the only offshore platform which is a full member of the World Federation of Exchanges and is recognised by the SEC of the USA, the Financial Conduct Authority and HMRC of the UK and the Canadian Ministry of Finance.

Other advantages to using Bermuda as a domicile for an investment fund and/or administration is that it has a convenient location and an advanced and robust infrastructure. Bermuda is one hour ahead of New York and 4 hours behind London and consequently ideally located for transatlantic business. It is less than a 2-hour flight to New York (with US preclearance in Bermuda) and 7 hours to London (with daily flights in the summer). Bermuda demonstrated its infrastructure resilience in 2014 when after sustaining a direct Category 3 hurricane hit on a Saturday morning the central business district was fully operational at 8.30 a.m. on the Monday morning.

BeesMont Law has historically provided a strong investment funds practice and continues to be able to assist clients with specialised advice regarding investment vehicles and innovative structures. Our team has experience with a range of investment products including, but not limited to, the following;

  • Establishing investment vehicles (including equity funds, bond funds, infrastructure funds, private funds, index funds, alternative investment funds and private equity funds)
  • Segregated Accounts structures (including incubators/start-ups, umbrella funds, master-feeder funds, separate account management and ILS strategies)
  • Mergers and acquisitions (including changes to fund domicile)
  • Initial public offerings (debt or equity issues)
  • Preparing and advising on disclosure and filing requirements of the BSX
  • Listings of investment funds on any Appointed Stock Exchange
  • Preparing and negotiating contractual documentation
  • Schemes of arrangement
  • Advising investment management companies/administrators on corporate governance/operational issues and drafting standard form agreements


The BMA was established in 1969 under The Bermuda Monetary Authority Act 1969 and is managed by a Board of Directors, with a chairman and chief executive officer. The BMA is responsible for the supervision, regulation and inspection of financial institutions which includes banks, custodians, broker dealers, administrators and investment managers. The sophistication of the BMA as a regulator has been recognised as Bermuda has been selected in the first wave of non-EU countries to be assessed in respect to the EU's Solvency II Directive and Bermuda has achieved conditional status as a designated qualified jurisdiction by the National Association of Insurance Commissioners of the USA. The BMA is a full voting member of the International Organisation of Securities Commissions.


The Investment Funds Act 2006, as amended (IFA) governs the authorisation or registration and regulation of investment funds.

The IFA broadly defines investment funds as:

"any arrangements with respect to property of any description, including money, the purpose or effect of which is to enable persons taking part in the arrangements to participate in or receive profits or income arising from the acquisition, holding, management or disposal of the property or sums paid out of such profits or income."

To see the full article click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions