Although it is well-understood that fiduciaries are subject to the no profit rule, its proper ambit has long been a source of uncertainty and debate: is the fiduciary precluded only from making unauthorised profits from the same business or activity that its principal has entrusted it to pursue, or does the restriction go somewhat further? The UK Supreme Court recently answered that question in Rukhadze v Recovery Partners, providing welcome clarity on the default position under the rule and illuminating the ways in which liability for honest breaches might potentially be avoided.
Cayman Islands Regulatory Round Up - Spring 2025
The round-up provides a concise yet thorough summary of regulatory developments relevant to financial service providers (FSPs) and other stakeholders in the Cayman Islands. It highlights key legislative changes, publications by the Cayman Islands Monetary Authority (CIMA), updates on financial sanctions, and anticipates upcoming changes through "horizon scanning”. Links to the underlying CIMA publications, as well as related Appleby published briefings and e-alerts are available throughout this document. The information provided is “as of” 28 May 2025.
2025 Global Financial Crisis Stress Test: Bermuda
The Bermuda Monetary Authority (BMA) has recently published instructions for a significant data collection exercise: the 2025 Global Financial Crisis (GFC) Stress Test. This initiative requires Bermuda-regulated commercial long-term (Class C, D, and E insurers) to assess their sensitivity and resilience to a severe economic crisis alike the 2008 GFC. Submissions are required by mid-June 2025.
Corporate real estate acquisition in Bermuda
Corporate real estate acquisitions in Bermuda are a matter of careful balance. That is because, at just 21 square miles, land in Bermuda is a finite and closely managed resource.
Long-term reinsurance and ILS are set for growth
After a record-breaking 2024, Bermuda’s life reinsurance sector is likely to expand further this year, according to Brad Adderley. Adderley, who is managing partner of Appleby in Bermuda and runs its insurance practice, said in an interview at the Bermuda Risk Summit last month that, based on the new large reinsurers his firm was incorporating so far this year, there was a strong likelihood that Bermuda would match the 10 that were formed in 2024.
Multiple Pre-empted Listings Facility on The International Stock Exchange (TISE)
Find out more about the use of the Multiple Pre-empted Listings Facility.
Bermuda: The vital role of the principal representative
Bermuda's regulatory framework requires every insurance company registered under the Insurance Act 1978, including those without a physical presence on the island, to appoint a principal representative approved by the Bermuda Monetary Authority.
In its recent judgment in CC/Devas (Mauritius) Ltd v Republic of India, the High Court of England and Wales has held that ratification by a State of the New York Convention does not in itself amount to a waiver of immunity by that State in arbitral enforcement proceedings under English (and by extension Cayman) statute, addressing a key question that had been raised – but left unanswered – by previous authorities. This decision is of interest in relation to arbitral enforcement against States in the Cayman Islands.
The End of the Digital Nomad Visa: How Else Can Individuals Reside in Bermuda?
As of 28 February 2025, Bermuda officially discontinued its popular “Work from Bermuda” (WFB) Certificate, which had allowed digital nomads and remote workers to live and work on the island for up to a year. This program, introduced in August 2020, was part of a global trend during the height of the COVID-19 pandemic to attract remote professionals seeking a change of scenery. The scheme was popular – and the application process relatively straightforward - with the Bermuda Government reporting around 1,800 participants. However, the Government has recently announced that it will be “transitioning back to multi-year residency applications for individuals who wish to reside in Bermuda”. Termination of the scheme marks a significant shift in Bermuda’s approach to remote working and residency with the Government stating that the “transition aligns with the Government’s long-term economic strategy and housing policies, as it will help ensure more housing is available for locals”.
Compliance with Pipa for trustees
The Personal Information Protection Act 2016, the island’s data protection legislation, applies to all organisations that use personal information in Bermuda.
