Pursuant to the Amendment Regulations, an entity will be carrying on the relevant activity of “fund management” if it manages investments for an investment fund. For these purposes, “investment fund” has the meaning given to such term in the Investment Funds Act 2006 (and includes both open-ended investment funds and closed-ended investment funds), and the phrase “managing investments” should be construed in accordance with the Investment Business Act 2003 (the “IBA”).
Consequently, where an entity is managing or offers, or agrees to manage, investments for an investment fund, it will be carrying on the relevant activity of “fund management”, whether or not it is required to be licensed to conduct such activity in accordance with the IBA. Prior to the Amendment Regulations, an entity would be carrying on the relevant activity of “fund management” only if it managed investment for funds in respect of which a licence was required in accordance with the IBA or for which a licence would be required if such activity was taking place in Bermuda.
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Economic Substance – Extension of the Scope of the Relevant Activity of “Fund Management”