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ARTICLE · 29 JANUARY 2019

Legislative Update: Investment Funds Act

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Today's column addresses the substance and impact of recent amendments made to the Investment Funds Act 2006.

BermudaFinance and Banking
Jennifer Eve
Jennifer Eve
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Today's column addresses the substance and impact of recent amendments made to the Investment Funds Act 2006.

The Funds Act was amended by the Economic Substance Act 2018 and the Investment Funds Amendment Act 2018. The Substance Act became operative on December 31 and I expect that the Amendment Act will become operative during the first quarter of this year.

The Funds Act is the primary regulation for open-ended investment funds, which were previously divided into Authorised Funds, Exempted Funds and Excluded Funds.

Authorised Funds were split into four categories: Institutional Funds, Administered Funds, Specified Jurisdiction Funds and Standard Funds, while Exempted Funds were split into two categories: Class A Exempt Funds and Class B Exempt Funds. There was only one category of Excluded Funds, being Private Funds, and often these terms were used interchangeably.

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