The Regulations provide for three classifications of collective investment schemes; Bermuda Recognised Schemes, Bermuda Standard Schemes and Bermuda Institutional Schemes. A Bermuda Recognised Scheme is essentially comparable to a scheme now recognised under the Companies Act 1981 as a United Kingdom Class Scheme. Bermuda Institutional Schemes are a special category of collective investment schemes which are offered only to institutional or sophisticate investors. Bermuda Standard Schemes essentially meet the requirements contained in the Code of Conduct for Collective Investment Schemes issued by the Bermuda Monetary Authority ("the Authority") in consultation with the Bermuda International Business Association (BIBA") in December 1994.
The Regulations introduce a formal regulatory structure for the different classifications of collective investment schemes and apply a different level of regulation depending on the classification. Bermuda Recognized Schemes are subject to a comprehensive regulatory environment and offer the potential to be marketed in jurisdictions recognising Bermuda's regulatory and supervisory system. Bermuda Institutional Schemes are subject to a less comprehensive regulatory and supervisory environment because of the sophistication and expertise of the investors in those schemes. Bermuda Standard Schemes are subject to the level of regulation and supervision as provided for in the Code of Conduct for Collective Investment Schemes which has been in operation since December 1994.
Unless otherwise exempted by the Authority, all collective investment schemes have to comply with the provisions of these Regulations. Under the provisions of these Regulations every collective investment scheme except for existing United Kingdom Class Schemes has from the 9th February 1998 a period of twelve months to apply to the Authority for classification. Existing United Kingdom Class Schemes will continue to operate under the provisions of the Companies Act 1981 until such date as shall be specified by the Minister of Finance by order published in the Official Gazette. Copies of the Regulations will be available at the Information Services Department of the Bermuda Government.
Mr. Malcolm Williams, General Manger of the Bermuda Monetary Authority noted that, "This action by the Minister of Finance is very much welcomed and will enhance Bermuda's system of regulation and supervision over collective investment schemes and will undoubtedly enhance Bermuda's reputation. The introduction of these Regulations follows a tremendous amount of consultation both domestically and internationally and the Authority is very grateful for the significant input given by many sectors of the domestic and international communities."
For further information contact:
Investment Services Division
Bermuda Monetary Authority
Tel: (441) 295-5278; Fax (441) 292-7471