BERMUDA: Bermuda Announces Plans for AIFMD Dual Regulation

Monday July 20 2015

On 17 July 2015, the Government of Bermuda and regulator announced new legislation. This is with the aim of positioning the island in a strong position to be considered for ‘third-country’, or non-European Union, passport rights under the Alternative Investment Fund Managers Directive (AIFMD). It is anticipated that non-EU fund managers covered by the passport would generally be allowed to register in one EU member state and market their funds more freely in other states, subject to a regulatory regime that applies on an equivalent basis to EU managers.

This announcement comes as the European Securities Market Authority (ESMA) is poised to make a decision on 22 July upon whether to open up the EU market; ESMA is expected to announce a list of jurisdictions that should be considered by the European Commission (EC) for extension of passport rights in the funds business.

In essence, the bill solidifies the framework governing the Bermuda funds industry, allowing a manager to be licensed as an Alternative Investment Fund Manager (AIFM) as defined by the AIFMD.

The amendments are intended to supplement the present licensing and regulatory provisions which apply to any manager issued with an investment business licence by the Bermuda Monetary Authority (BMA). Additionally, the amendments will allow alternative investment fund managers to opt to come under the AIFMD-equivalent regulatory provisions if they wish to market their funds in Europe.

The AIFMD passport would be extended to the first ESMA and EC-approved jurisdictions by 15 October at the earliest.

Click on the above link for further details.