Global players woefully unprepared for Cyber, BEPS and Europe’s General Data Protection Regulations challenges – Bermuda Roundtable Bermuda’s sophisticated insurance market is the third-largest in the world, behind London and New York and the only one besides Switzerland to have been awarded Solvency II equivalency with the EU. These insurance, reinsurance and ILS (insurance linked securities) markets have given gravitas and substance to Bermuda’s status as an international financial centre. For example, Bermuda’s stock exchange lists over 75% of the world’s listed ILS.

Since the global financial crisis of 2008 there has been a major shift in the level of transparency and disclosure for tax purposes and also in the way in which governments assist each other in a global effort to stamp out corruption and tax evasion. Bermuda has been a leader in this field since the last century through its involvement with the OECD and the development of tax information exchange agreements and model terms (FATCA, CRS and now CbC). In this context it is also important to note that Bermuda was not listed as one of the 17 “noncooperative” tax jurisdictions on the recently released EU blacklist. Bermuda has also seen a renaissance its fund industry after legislation was passed in 2013 allowing exempt funds to be set up and started in just one day (page 10).

Global Game Changers: BEPS and Europe’s General Data Protection Regulation (GDPR)

As a result of recent OECD projects (namely BEPS, the Base Erosion and Profit Shifting project), how businesses hold, maintain and license their intellectual property assets (IP) will have to change or suffer the consequences of additional taxation or even double taxation. Businesses may have to evidence how the IP is developed or has value added to it in the jurisdiction where it is held in order to avoid this. An unexpected result of this is an increase in interest in establishing new IP heavy businesses in Bermuda where employees can actually create, develop and maintain IP in the jurisdiction thanks to the excellent IT infrastructure and connectivity to the rest of the world. Bermuda has also shown that businesses here can actually innovate in partnership with government and the regulators (page 8-9, 11).

The European Union’s General Data Protection Regulation (GDPR) comes into force on May 25th, 2018. This privacy legislation imposes restrictions on international transfers of personal data outside the EU. This means that GDPR needs to be adopted or aligned to by all jurisdictions looking to attract or retain businesses that conduct business in or to the EU. Anyone processing fund subscriptions or doing AML/KYC work for EU clients will definitely be impacted by the European regulation. Along with that, the EU’s proposed e-Privacy regulation also holds a number of surprises, potentially implementing highly restrictive rules for which most global players may be woefully unprepared.

Read More

Share
Twitter LinkedIn Email Save as PDF
More Publications
13 May 2021 |

Bermuda: Mergers & Acquisitions Comparative Guide

This country-specific Q&A provides an overview to Mergers & Acquisitions laws and regulati...

Contributors: Riley O’Brien
6 May 2021 |

Blue chip Bermuda welcomes green investment

In 2019, the “underwriting nature” initiative led by Swiss Re culminated in the first ever coral...

23 Apr 2021 |

Changes to the Employment Act 2000 – Part 5

This is the fifth and final part of our series of articles on the amendments to the Employment Act 2...

15 Apr 2021 |

6 months on: Temporary relocation and residency by investment continues to increase in popularity

Six months on from the new digital nomad programmes, did the predicted upward trend reflect the real...

8 Apr 2021 |

Doing business from and within our shores

Bermuda is a hub for international business, which is one of the top contributors to our economy and...

25 Mar 2021 |

Changes to the Employment Act 2000 – Part 4

This Article is Part 4 of our series on the amendments to the Employment Act 2000 (“Act”) that w...

25 Mar 2021 |

Full Steam Ahead at the Jersey Ships Registry

Against a backdrop of uncertainty surrounding Brexit and the difficulties created by the global pand...

24 Mar 2021 |

Economic Substance update Q1 2021

Economic Substance update Q1 2021

17 Mar 2021 |

Need for high-layer capacity drives cat bond surge

Catastrophe bonds played a bigger role backstopping the insurance sector at recent reinsurance renew...

12 Mar 2021 |

Material adverse change clauses in light of the Covid-19 pandemic

Experts from each of our key global offices provide jurisdiction specific advice and answer question...