Professional Class A Funds
Professional Class A funds in Bermuda have specific requirements, as outlined in the Bermuda Investment Funds Act. The key requirements for these funds include:
- Qualified Participants Only: Professional Class A funds must be available only to qualified participants, as defined under the Bermuda Investment Funds Act. This typically means sophisticated investors who meet certain financial criteria.
- Bermuda-Based Officer, Trustee, or Representative: The fund must have an officer, trustee, or representative resident in Bermuda who has the authority to access the books and records of the fund.
- Appointment of Service Providers: The operator of the fund must appoint an investment manager, fund administrator, registrar, auditor, and a custodian or prime broker.
- Financial Reporting Standards: The financial statements of the fund should be prepared in accordance with recognized standards such as International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP) in Bermuda, Canada, the United Kingdom, or the United States of America, or any other GAAP recognized by the Bermuda Monetary Authority (BMA).
- Investment Manager Requirements: The investment manager for Professional Class A funds must satisfy one of the following criteria:
- Licensed under the Investment Business Act 2003.
- Authorized or licensed by a foreign regulator recognized by the Authority (e.g., the US SEC or UK FCA).
- Operating in or from Bermuda or in a jurisdiction recognized by the Authority, with either:
- Gross assets under management of not less than $100 million.
- Being a member of an investment management group with consolidated gross assets under management of not less than $100 million.
These requirements reflect the regulatory framework in Bermuda for Professional Class A funds, which are designed to cater to sophisticated investors and are subjected to a robust set of rules and standards to ensure proper management and oversight.