JD Supra (Blogs)

Further to the Bermuda Monetary Authority's ("BMA") consultations with respect to proposed enhancements to the regulatory regime for commercial insurers and insurance groups, the following legislation will become operative on 31 March 2024: Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Amendment Rules 2024 - Insurance (Prudential Standards) (Class 3A...

In recent years, the global markets (predominantly in the US) have experienced a significant surge in hostile takeovers, largely due to the COVID 19 pandemic, which impacted public companies' equity values and ultimately resulted in increased exposure to opportunistic acquisitions. However, more recently there has been a shift away from corporate raiders seeking outright control of a target, to...

On 19 May 2023, Bermuda Government has passed legislation to amend the Digital Asset Business Act 2018 ("DABA" or the "Act") which further enhances the legal and regulatory digital asset business ("DAB") framework and provides further clarity on the classes of DAB activity which require a license from the Bermuda Monetary Authority ("BMA") as well as to make changes to facilitate more effective...

The continuing development of the gig economy and the increased use of remote working following the pandemic has presented challenges for determining the true nature of working relationships. This determination is critical for businesses. Misclassification of workers as independent contractors or consultants can lead to significant consequences. Properly classifying workers is critical in...

The economic substance regime has continued to develop, with the most notable change being the amendment to the definition of the ‘relevant activity’ of ‘fund management’, which was effective from 1 January 2022. As a result of the amendments, an entity will be carrying on the ‘relevant activity’ of ‘fund management’ if it manages investments for an investment fund, as defined under the...

The last few years have been standout years for take private transactions globally – representing the most active years since 2007 - with Bermuda incorporated listed companies involved in a number of the largest deals. What is driving the rush to the listco exit ramp? A convergence in the valuations of public companies - particularly in sectors adversely affected by COVID-19 - with their private...

Bermuda has established itself as a leading market for insurtech, representing a convergence of the well-established reinsurance market with the burgeoning fintech market. A number of Bermuda reinsurance companies already partner with, invest in, or are operating insurtech operations that provide disruptive innovations to the traditional reinsurance market cycle. As a result, risk is now...

1. INTRODUCTORY - 1.1 Forms of Corporate/Business Organisations The principal forms of corporate and business organisations in Bermuda are: • exempted companies, owned by non-Bermudians and carrying on business outside Bermuda from a principal place of business in Bermuda (or within Bermuda with other exempted companies); and • local companies requiring at least 60% ownership by...

• JD Supra Bermuda

Part 2: Statements of employment, statements against bullying and sexual harassment, new entitlements and other changes to Bermuda’s Employment Act 2000 - On 1 June 2021, various changes to Bermuda’s Employment Act 2000 will come into force (the “Amended Act”). These changes arise from the Employment Amendment (No. 2) Act 2020 and the Trade Union and Labour Relations (Consolidation) Act 2020,...

• JD Supra Bermuda

The introduction of economic substance requirements in offshore jurisdictions has sharpened the impetus for investment fund managers to establish a physical office where their funds are incorporated. Here are six good reasons to choose Bermuda. 1. An established funds community - Bermuda is a significant centre for both traditional and alternative investments including funds, private equity...

• JD Supra Bermuda

The Bermuda Registrar of Companies (RoC) has advised that it will be launching the first phase of its new company registry system on 7 June 2021. Economic Substance Declarations that have been started must be finished and submitted by 3 June...

• JD Supra Bermuda

The Bermuda Monetary Authority (BMA) has recently issued a Consultation Paper on proposed changes to the Bermuda Solvency Capital Requirement Model and Schedules.

• JD Supra Bermuda

What a year it has been since our last Insurance Bulletin in March 2020. Although the full impact of Covid-19 on the re/insurance industry remains unclear, the need to retain capital to meet potential losses has contributed to a general hardening of the market after 15 years of soft market conditions characterised by excess capacity, low prices and more relaxed policy terms. Please see full...

• JD Supra Bermuda

In December 2020, as part of its review to update Bermuda’s commercial insurance regime, the Bermuda Monetary Authority (BMA) issued a consultation paper proposing the introduction of an Internationally Active Insurance Group (IAIG) concept to meet the principles and standards of the International Association of Insurance Supervisors’ Common Framework (ComFrame).  

• JD Supra Bermuda

Under Bermuda’s new Economic Investment Certificate and Residential Certificate Policy, non-Bermudian individuals who invest at least $2.5 million in the island receive the right to live in Bermuda along with a path to long-term residency after a period of five years.

• JD Supra Bermuda

With its well-respected regulatory regime and highly regarded professional services industry, Bermuda is an ideal location for the creation of an international charitable structure. Companies and HNW families and individuals will find a range of tax efficient, flexible vehicles available for the establishment of charitable or philanthropic entities. 

• JD Supra Bermuda

Disapplying the perpetuity period of a trust can allow deceased settlors to extend their influence down many future generations, almost indefinitely. However, the hand of the deceased settlor can be seen as benign and protective rather than oppressive for trusts that are tax efficient and beneficial from an asset protection perspective, and where vast wealth can be managed by professionals and...

• JD Supra Bermuda

Royal Caribbean International is to homeport a cruise ship in Bermuda in the summer of 2021, which marks the first time the jurisdiction has been homeport for a major cruise line. From 26 June through August, the Vision of the Seas will be based in Bermuda, offering seven-day cruises to a private island in the Bahamas. Passengers will board in Bermuda and remain overnight before cruising to...

• JD Supra Bermuda

Recent amendments to Bermuda’s National Pension Scheme (Occupational Pensions) Act 1998 and National Pension Scheme (General) Regulations 1999 have overhauled the way that private sector pension plans are registered, administered, and funded.

• JD Supra Bermuda

As of January 1, 2020, Bermuda employees are entitled to increased paid and unpaid maternity leave, and, for the first time, paid and unpaid paternity leave. Bermuda’s Parliament included the provisions in the Employment (Maternity Leave Extension and Paternity Leave) Amendment Act 2019, which amended the Employment Act 2000 (EA 2000).

• JD Supra Bermuda

With enactment of the Personal Information Protection Act (PIPA), Bermuda can now count itself among the ever-expanding list of jurisdictions with enhanced privacy protections. PIPA, passed on July 27, 2016, and entered into force in December 2017, shares many of the more stringent requirements and protections with Europe’s impending General Data Protection Regulation (GDPR), which indicates a...

• JD Supra Bermuda

1. What role does the government of Bermuda play in approving and regulating foreign direct investment? The government of Bermuda welcomes foreign investment in Bermuda and is committed to working with industries and investors in Bermuda to ensure that initiatives are introduced to ensure the success of the international business sector. The Government continues to take proactive steps to...

• JD Supra Bermuda

Two separate courts in the Southern District of New York have recently issued opinions relating to a complicated bankruptcy proceeding following the collapse of MF Global Holdings Ltd. in 2011. The underlying dispute involves MF Global Holdings and MF Global Assigned Assets’ (“Plaintiffs”) attempts to recover insurance proceeds from the defendants (“Bermuda Insurers”) under certain excess errors &

• JD Supra Bermuda

Bermuda has long been a favorite jurisdiction of captive insurance companies and insurance-linked investment funds. More than 70% of the $25 billion in global insurance-linked securities (ILS) volume is listed on the Bermuda Stock Exchange (BSX). In furtherance of its expanding role as a destination in the off-shore investment fund ecosystem, Bermuda has, in the last several years, updated its...

• JD Supra Bermuda

EIOPA has published a progress report on the latest developments in the supervisory regime of Bermuda. In March 2015, EIOPA provided the Commission with additional advice regarding the full equivalence assessment under Solvency 2 of the insurance supervisory regime in Bermuda?.

• JD Supra Bermuda

Bermuda is widely perceived as a blue chip offshore financial centre (not just in insurance and mutual funds) and continues to introduce new or amend existing legislation to attract more investors to use the jurisdiction. After extensive consultation with industry stakeholders, a series of amendments to Bermuda’s partnership legislation were passed by the Bermuda government on May 29, 2015,...

• JD Supra Bermuda

In Olsen v Gearbulk Services Ltd UKEAT/0345/14/RN, the Employment Appeal Tribunal (EAT) considered whether an internationally mobile employee could bring a claim for unfair dismissal under UK law on the basis that he spent more of his working time in the UK than in any other country.

• JD Supra Bermuda

Foreign retrocession insurance transactions are beyond the reach of IRS excise taxes based on the plain language of 26 U.S.C. § 4371(3), which aims to tax insurance transactions involving policies issued by foreign insurers or reinsurers. The District Court for the District of Columbia recently granted summary judgment to a Bermuda reinsurer in its suit against the IRS for a refund of an excise...