Overseas Funds
Overseas funds in Bermuda, which are investment funds organized outside of Bermuda but managed or promoted within the jurisdiction, are subject to specific registration requirements under Bermuda’s Investment Funds Act. These requirements include:
- Designation and Registration: Investment funds incorporated or established outside Bermuda that are managed or promote their activities in or from Bermuda must be designated and registered as “Overseas Investment Funds” with the Bermuda Monetary Authority (BMA).
- Registration Process: To register as an overseas investment fund, the operator of the fund must:
- Notify the BMA through its online registration system “ERICA” of the fund’s existence and operations.
- The BMA must be provided with the fund’s offering documents and information on the regulatory approval given by, or notification given to, the overseas regulatory authority in the country or territory in which the fund is incorporated or established.
- Pay the application fee and then an annual fee thereafter.
- Annual Compliance Certificate: Once designated and registered, an overseas investment fund must submit a certificate of compliance to the BMA annually, on or before 30 June each year. This certificate should include:
- A statement that the fund continues to satisfy the requirements of the Act and has been in compliance with the applicable rules and requirements of its overseas regulatory authority during its prior fiscal year.
- Details of any material changes made to its offering document during the period.
- A statement of compliance with the requirements of the Act as applicable to overseas investment funds.
These requirements ensure that overseas funds engaging in fund management or promotion activities in Bermuda adhere to the jurisdiction’s regulatory standards, enhancing transparency and investor protection within the sector.