Investment Company Formation

The Investment Business Act, 1998 (“the Act”) prohibits the conduct of investment business in or from Bermuda without a license or an express exemption under the Act. Investment business is defined very broadly to include any dealing in, arranging deals in, managing or offering securities or providing advice on securities. As a result of this broad definition of investment business, any person who provides investment management, investment advice, brokerage or similar services are required to be licensed by the Act or must apply for a specific exemption.

Investment professionals seeking to be licensed under the Act must demonstrate, to the satisfaction of the Bermuda Monetary Authority, that those responsible for the investment business are fit and proper persons to carry it on and that they have the requisite knowledge, skill, experience and personnel to conduct said business from Bermuda.

Exemptions and exclusions provided for under the Act cover the following:

  • Sophisticated private investors or persons that advise such investors
  • Persons who have no more than 20 clients
  • Entities licensed by a recognized regulatory authority
  • Barristers and Attorneys
  • Trustees or Personal Representatives
  • Insurers