Conyers Dill & Pearman has advised the first Class A Exempt Fund to be registered in Bermuda under the new funds regime.
The Investment Funds Act 2006 was amended in October 2013 to introduce two new fast track categories of funds: Class A Exempt Funds and Class B Exempt Funds.
The new Class A Exempt Fund category guarantees instantaneous registration for funds managed by qualified investment managers. In order to qualify, operators of Class A Exempt Funds must limit the offering of the fund’s securities to “qualified participants” only and must retain an investment manager who is either regulated by a recognised securities regulator in its home jurisdiction or who has group assets under management of at least USD100m.
“Conyers is pleased to have advised its client in forming the first Class A Exempt Fund to be registered in Bermuda under the new funds regime,” says Dawn Griffiths, head, Bermuda investment funds in Conyers Dill & Pearman’s Bermuda office. “Allowing funds to be established and launched within one business day confirms Bermuda’s commitment to providing sophisticated investors and their advisors with innovative and tailored solutions.”
The registration was effected for a US SEC registered investment adviser with over USD90bn in assets under management.
“This is great news and demonstrates the positive momentum of the fund industry as a result of the introduction of the new fund classes,” says Stephen Lund, chief executive, Bermuda Business Development Agency. “Furthermore, we think it is reflective of Bermuda’s drive to listen to the industry and respond quickly and proactively. We look forward to more growth in the industry.”
Registration of a Class A Fund with the Bermuda Monetary Authority (BMA) can be accomplished in one business day by delivering to the BMA a certificate in the prescribed form confirming that the fund meets the requirements for exemption. This must be accompanied by a copy of the fund’s offering memorandum. Once these documents are deposited with the BMA, the fund is registered and can commence operations immediately without further approvals or authorisations.