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ARTICLE · 07 FEBRUARY 2020

Bermuda Investment Funds' Developments

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The Investment Funds Act 2006 (IFA) was amended by the Investment Funds Amendment Act 2019 (IFA Revision) which was passed in December 2019 and became operative on 1 January 2020.

BermudaFinance and Banking
Sharon A. Beesley
Sharon A. Beesley
Kimonea Pitt
Kimonea Pitt
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The Investment Funds Act 2006 (IFA) was amended by the Investment Funds Amendment Act 2019 (IFA Revision) which was passed in December 2019 and became operative on 1 January 2020. The IFA Revision introduced some important changes to investment fund regulation in Bermuda with the intention of further strengthening the regulatory framework in Bermuda for funds.

Principal Changes

The principal IFA Revision changes are intended to address economic substance for collective investment vehicles which previously did not require any registration under the IFA or regulation by the Bermuda Monetary Authority (BMA) pursuant to the IFA. Consequently, closed-ended Bermuda investment funds and overseas investment funds which are managed or carry on promotion in or from within Bermuda are now required to seek registration or designation with the BMA during a transition period of 6 months. Each new category is considered below together with some supplemental changes under the IFA

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