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Act

Investment Business Act 2003

Bermuda Monetary Authority (BMA) · Bermuda

In force

Status per Bermuda Laws Online (bermudalaws.bm) (as at 2026-07-30)

View on BMA's website Source document

Current version last checked: 2026-07-07

Summary

This is Bermuda's primary statute regulating investment business, administered by the Bermuda Monetary Authority (BMA). It establishes a licensing, registration and designation regime for persons carrying on investment business in or from Bermuda, sets minimum criteria for authorisation, and gives the Authority ongoing supervisory, information-gathering, investigatory and disciplinary powers over investment providers, investment exchanges and clearing houses.

  • Licensing and registration: Persons must be licensed, registered as Class A or Class B registered persons, or designated Non-registrable before carrying on investment business in or from Bermuda, subject to specified exemptions.
  • Alternative Investment Fund Managers: A dedicated chapter requires AIFMs managing an AIF to be licensed, to comply with management requirements, and to notify the Authority of material changes.
  • Ongoing supervision: The Authority can restrict, revoke or direct licensees, object to controllers, and take protective measures such as winding up, injunctions and restitution orders.
  • Accounts, audit and records: Investment providers must prepare annual financial statements, annual returns and quarterly returns, maintain adequate systems and records, safeguard clients' money, and appoint auditors who must report certain matters to the Authority.
  • Information gathering and investigations: The Authority may require production of documents and information, enter premises, and conduct or commission investigations of suspected contraventions.
  • Disciplinary measures: The Authority may impose civil penalties, issue public censures, prohibition orders, warning and decision notices, and publish enforcement outcomes.
  • Investment exchanges and clearing houses: Part IV sets out a parallel recognition regime, notification duties, audit requirements and disciplinary powers for recognised investment exchanges and clearing houses.

The Act also restricts disclosure of information obtained by the Authority, creates offences for false documents or information, and empowers the Minister and Authority to make regulations, codes of conduct, and orders amending the scope of regulated investments and activities via the First and Second Schedules.

Key obligations

  • Persons carrying on investment business in or from Bermuda must hold a licence, be registered as a Class A or Class B registered person, or be designated Non-registrable, unless exempted.
  • Licensed and registered persons must appoint a senior representative and report certain events to the Authority through that representative.
  • Investment providers must prepare and file annual financial statements and annual returns with the Authority.
  • Investment providers must prepare and file quarterly returns with the Authority.
  • Investment providers must maintain adequate accounting records and systems of control, and safeguard clients' money.
  • Investment providers must appoint auditors, who must communicate certain matters to the Authority.
  • AIFMs managing an AIF must obtain a licence and notify the Authority of material changes to their business.
  • Licensed persons and controllers must notify the Authority of new or increased control or changes of controller or officer.
  • Recognised investment exchanges and clearing houses must notify the Authority of changes to controllers, officers and other specified matters, and prepare annual audited financial statements.
  • Investment providers must maintain minimum net assets, adequate liquidity and appropriate insurance as prescribed or required by the Authority to be regarded as conducting business prudently.

Applies to

investment providers, licensed persons, Class A registered persons, Class B registered persons, Non-registrable persons, alternative investment fund managers (AIFMs), recognised investment exchanges, clearing houses, controllers of investment providers

Deadlines

  • 30 January 2004: General operative date of the Investment Business Act 2003.
  • 30 April 2004: Operative date for Section 27 of the Act.
  • 15 September 2004: Operative date for Part IV of the Act (regulation of investment exchanges and clearing houses).

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Version history

2026-07-07

source file (current)