Standard Funds
Standard funds in Bermuda, which are typically designed for retail investors, have several key requirements:
- No Set Minimum Investment Amount: Unlike some other classes of funds, standard funds in Bermuda do not have a set minimum investment amount. This makes them more accessible to a broader range of investors, including retail investors.
- Bermuda-Based Fund Administrator: A standard fund is required to have a fund administrator based in Bermuda. However, other fund officers may be based anywhere in the world, providing some flexibility in terms of global management and operations.
- Regulation and Supervision: As standard funds can include a more significant retail element among their investors, they are subject to more comprehensive regulation and supervision. This ensures that retail investors’ interests are adequately protected.
- Filing Requirements: Standard funds, along with other authorised funds, are required to have ongoing filing requirements under the Investment Funds Act 2006. These requirements include the appointment of service providers and annual fees. The Bermuda Monetary Authority’s online system, Integra, is used for these filings.
- Frequency of Filings: Standard funds must make monthly filings within 20 business days after the end of each month. These filings include information such as the Net Asset Value (NAV), the amount subscribed, and the amount redeemed.
- Notification of Changes: Operators of standard funds must notify the Bermuda Monetary Authority (BMA) in writing of certain proposed changes. This includes material changes in the fund’s offering document, replacement of a service provider, trustee, director, general partner, or manager, and the winding up of the fund’s affairs. Standard funds have more stringent requirements and must obtain prior approval for these proposed changes.
These requirements are part of Bermuda’s regulatory framework to ensure the proper functioning and oversight of standard funds, particularly given their accessibility to retail investors.