WEST PALM BEACH, FL (www.hedgeco.net) – The Bermudan government has decided to cut down on red tape and streamline its investment processes and unnecessary bureaucracy. The announcement was made bythe Bermudan Finance Minister Paula Cox. According to her, the changes are needed to enhance the Island�s Investment efficiency without impacting in any way, Bermuda�s �rigorous vetting and approvalstandards.�
Bermuda�s economy has benefited significantly from the Islands� perception as a safe haven for offshore investments for mutual funds and hedge funds alike. Many mutual fund and hedge fund companies have establishments in Bermuda, such firms are attracted by low-tax jurisdictions and the increased operational flexibility offered to them by regulatory agencies.
According to the released statements, hedge funds and mutual fund organizations establishing operations in Bermuda �no longer need the Minister’s permission to get up and running, and they no longer have to go through the full classification process before incorporation.� Such relaxation will obviously appeal to hedge fund managers in particular, many of whom are running away from regulatory impediments in countries such as the United States and Britain.
The U.S. Securities and Exchange Commission last year passed new regulatory laws for the members of the U.S. hedge fund industry. Some analysts believe such new regulatory measures may also hasten the relocation of many investment firms to places such as Bermuda, or the Cayman Islands.
The new changes introduced by the Bermudan government were the result of a warning by opposition Senator E.T. (Bob) Richards, who told his Senate colleagues that he nursed some concerns regarding the level of regulation being adopted by the Bermudan government. Richards warned that Bermuda was loosing out to Cayman Islands as the favorite offshore investment jurisdiction.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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