Following on our firm’s 2019 alerts, industry will be aware of developments in relation to the Economic Substance Act 2018 with the Economic Substance Amendment (No. 2) Act 2019 and the Economic Substance Amendment (No.3) Regulations 2019 coming into force on 24 December 2019. At the same time, the Investment Funds Amendment Act 2019 (“IFA Amendments”) was passed and became operative 1 January 2020, introducing several important changes to the Investment Funds Act 2006 (IFA). The IFA Amendments are intended to further enhance Bermuda’s regulatory framework, primarily in relation to categories of investment funds that previously did not require any registration or regulation in Bermuda.
In particular, operators of closed-ended Bermuda investment funds and operators of overseas (non-Bermuda) funds managed or carrying on promotion in or from within Bermuda should have regard to these important amendments to the IFA that will require action by such funds to seek to be designated or registered with the Bermuda Monetary Authority (BMA).
This alert deals solely with certain key amendments to the IFA. For information on the broader implications of the Economic Substance Act for Bermuda entities, please refer to the separate Conyers alerts on Economic Substance.
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Important Changes to the Bermuda Investment Funds Act 2006