The recent Economic Substance Act, 2018
("ESA"), passed in December 2018, included within it a
series of amendments to the Investment Funds Act, 2006
(the "IFA"). These amendments to the IFA are for the
purpose of enhancing Bermuda's regulatory framework with
respect to certain categories of unregulated investment funds,
namely, the private Excluded funds and the Class A and Class B
Exempt funds.
This alert deals solely with the amendments to the IFA. For
information on the broader implications of the ESA for Bermuda
entities, please refer to the Conyers alerts on Economic
Substance.
The original IFA framework
Qualifying investment funds previously had the option to
register with the Bermuda Monetary Authority (the "BMA")
as authorised/regulated funds or in one of three non-regulated
categories of funds: (i) the private Excluded fund; (ii) the Class
A Exempt fund; and (iii) the Class B Exempt fund. This group of
non-regulated funds was exempted from the
