Remember To Reclassify Your Bermuda Exempt Fund By 3 October

The Bermuda Investment Funds Act 2006 was amended with effect from 4 October 2013 by the Investment Funds Amendment Act 2013 (Amendment Act). The Amendment Act introduced two new classes of exempt funds to the Bermuda fund landscape – the Class A Exempt Fund (Class A Fund) and Class B Exempt Fund (Class B Fund), and repealed the existing exemption provision.

The introduction of the new classes of exempt fund was a result of collaboration between the Bermuda Government, the Bermuda Monetary Authority (BMA) and local and overseas industry stakeholders with a view to streamlining the exemption process.

While the Amendment Act immediately introduced the two new classes of exempt fund, it did not immediately repeal the pre-Amendment Act (old regime) exempt funds. Instead, any fund that on the date of commencement of the Amendment Act qualified for exemption under the repealed provisions was deemed to continue to be exempt in accordance with the repealed provisions,