Given that we are now over half way through that period, it seemed timely to provide a reminder that operators of such funds should be considering whether they are now within scope of the IFA or if your business needs to make any changes or take additional steps in order to ensure continued compliance.

In addition to changes to the IFA, changes have been made to the rules which were previously promulgated thereunder. These also need to be considered as part of this exercise.

The first set of rules, which are the Investment Fund Offering Document Rules 2019, were made in relation to the issuance and contents of offering documents.  Previously, these rules only applied to authorised funds but now apply to both authorised and registered funds. In practice, we are finding that many funds’ offering documents are largely compliant and already contain much of the materials required by the new rules. Notwithstanding this, it is still important to complete a review of the applicable fund offering document. In some cases, funds will need to take steps to produce offering documents that comply with the requirements of the rules.

The second set of rules were made pursuant to the Bermuda Monetary Authority’s (BMA) broader ability under the IFA to make rules as to the powers, duties, rights and liabilities of operators, service providers, directors and participants of funds, which is referred to as the Investment Fund Rules 2019. At a high level, requirements are included in connection with, amongst other things, custody of assets, valuations and the publication and making available of information and documentation to investors. These rules formerly applied only to authorised funds that were registered as standard funds, but now apply to all authorised and registered funds.

It should be noted that, in accordance with the IFA, a fund may apply to the BMA for a waiver or modification of the new rules. The BMA may only grant such a modification or waiver in certain circumstances, which will need to be considered in the context of the fund in question.

To the extent that no action has been taken to ensure continued compliance with the IFA, we would encourage you to reach out to your relevant Appleby contact to assist.

Share
Twitter LinkedIn Email Save as PDF
More News
6 Aug 2020 | News

Offshore Business Update

This is an update for our clients on how the authorities in our core jurisdictions are responding to...

4 Aug 2020 | News

Bermuda launches new one-year ‘Work From Bermuda’ residency initiative

Bermuda is now offering one-year residency for those who want to work or study remotely. Effective ...

24 Jul 2020 | News

Appleby Bermuda announce 2020 Scholarship and Bursary Recipients

For the last 40 years, the Partners of Appleby in Bermuda have provided scholarships and bursaries t...

15 Jul 2020 | News

Bermuda Modernises Trust Laws

Enhancements to Bermuda’s “firewall” provisions will soon be enacted. The government, with the...

14 Jul 2020 | News

Appleby Receives High Rankings in Chambers’ Annual High Net Worth Guide

Lawyers from Appleby’s Bermuda, Cayman Islands and Jersey Private Client & Trusts practices ha...

8 Jul 2020 | News

Appleby releases Offshore Data Protection Guide

Leading offshore law firm Appleby announces today it has launched an Offshore Data Protection Guide ...

6 Jul 2020 | News

Appleby Global Services announce new leadership team

Appleby Global Services (AGS) a global fiduciary services provider which was launched by offshore la...

2 Jul 2020 | News

Covid-19: Protecting Personal Data – the New Normal

One unanticipated consequence of the COVID-19 pandemic has been the huge increase in the collection ...

19 Jun 2020 | News

Appleby partners with ‘Collision From Home’

Appleby is partnering with Collision, North America’s fastest-growing tech conference, to showcase...

17 Jun 2020 | News

Considerations for Trustees during COVID-19

Who saw a global pandemic coming in 2020?  Was anyone ready for it?  And could anyone have predict...