Professional Class B Funds
Professional Class B funds in Bermuda have specific requirements under the Bermuda Investment Funds Act. While some of these requirements overlap with those for Professional Class A funds, there are distinct criteria for Class B funds. The key requirements for Professional Class B funds include:
- Qualified Participants Only: The fund must be open to qualified participants as defined under the Act. This typically includes sophisticated investors who meet certain financial criteria.
- Local Officer, Trustee, or Representative: The fund needs to appoint an officer, trustee, or representative resident in Bermuda who has authority to access the books and records of the fund.
- Appointment of Service Providers: 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 like 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 Qualifications: Unlike Class A funds, the specific qualifications for the investment manager of a Professional Class B fund are not detailed in the information available. However, it’s likely that there are similar expectations for the investment manager to be licensed or recognized by a competent authority, either in Bermuda or another recognized jurisdiction, and to meet certain asset management thresholds or be part of an established investment management group.
These criteria are part of the regulatory framework designed to ensure that Professional Class B funds are managed and operated in a transparent, responsible, and investor-focused manner.