Investment Fund Guidelines (Updated December 2023)

Summary

This is the BMA's consolidated guidance under the Investment Funds Act 2006 explaining how the Authority vets and authorises investment funds, and setting out the ongoing compliance, reporting and notification obligations that apply once a fund is designated, registered or authorised. It also covers AML/ATF compliance, fit and proper requirements for operators and service providers, late fees, revocation/cancellation, segregated accounts structures, digital assets and cannabis-related business considerations.

• Application process: Two-track vetting for incorporation/establishment and for fund registration or authorisation; SAC/ISAC registrations require BMA no-objection tied to a filed fund application.
• Designated Overseas Funds: An overseas fund may not be managed or promoted in or from Bermuda unless designated as an Overseas Fund under section 5A(7) of the Act.
• AML/ATF compliance: Registered/authorised funds are RFIs under POCA and must appoint an MLRO and Compliance Officer, provide contact details and board-approved AML/ATF policies to the BMA, and ensure overseas administrators meet POCA-equivalent standards.
• Fit and proper requirements: Operators, officers and service providers must be fit and proper, vetted by the BMA, and accompanied by personal declarations for new appointees (unless vetted within the prior 12 months).
• Reporting requirements: Designated, registered and authorised funds must make annual (and for authorised funds, monthly or quarterly) filings via INTEGRA covering NAV, subscriptions/redemptions, financial statements, offering document changes and compliance certifications.
• Filing extensions and late fees: Up to three annual filing extensions may be requested for a $300 fee each; late annual filings incur a $1,000 fee and late statistical filings a $200 fee, recoverable as a civil debt.
• Revocation/cancellation: Authorisation, registration or Overseas Fund designation can be revoked or cancelled for non-compliance.
• Material change and other notifications: Operators must notify the BMA of material changes and other specified matters, including late notification consequences.
• Structural and sector-specific guidance: Additional guidance addresses Segregated Accounts Companies, Incorporated Segregated Accounts Companies, digital assets, and cannabis-related business risk and AML considerations.

The guidelines are administrative and compliance-focused, directing funds and their operators to BMA's INTEGRA electronic filing platform and specifying fees, deadlines and documentation for each fund type.

Key obligations

• Operators of overseas investment funds must obtain Designated Overseas Fund status before managing or promoting the fund in or from Bermuda.
• Operators must appoint a fit and proper Money Laundering Reporting Officer and Compliance Officer and furnish their contact details and board-approved AML/ATF policies to the BMA at registration/authorisation, and update these when a new fund administrator is appointed.
• Operators must ensure overseas fund administrators maintain AML/ATF controls equivalent to POCA standards.
• New service providers and directors must submit a completed personal declaration unless vetted by the BMA within the prior 12 months.
• Designated Overseas Funds must file an annual statement and declaration form within six months of the fund's financial year end.
• Professional Class A, Class B, Private Fund and Professional Closed Fund registrants must file audited financial statements (or unaudited management accounts for Private Funds), an updated offering document, and an annual certification form (with NAV, subscriptions, redemptions) within six months of financial year end.
• Standard Funds must file monthly NAV/subscription/redemption statements within 20 business days after month end and an annual statement of compliance within six months of financial year end.
• Institutional, Administered and Specified Jurisdiction Funds must file quarterly NAV/subscription/redemption statements within 20 business days after each calendar quarter and an annual statement of compliance within six months of financial year end.
• Operators unable to meet a filing deadline may request up to three annual filing extensions (at $300 per request) via INTEGRA, including the reason for delay and proposed timeline.
• Operators who file late without an approved extension must pay a late fee of $1,000 for late annual filings or $200 for late statistical filings.
• Operators must notify the BMA of billing contact changes on submission forms.

Applies to

investment funds, mutual fund companies, overseas investment funds (Designated Overseas Funds), Professional Class A Funds, Professional Class B Funds, Private Funds, Professional Closed Funds, Standard Funds, Institutional Funds, Administered Funds, Specified Jurisdiction Funds, fund operators, fund administrators, segregated accounts companies (SAC), incorporated segregated accounts companies (ISAC)

Deadlines

• within six months of the fund's financial year-end: Annual filing deadline for Designated Overseas Funds, Professional Class A, Class B, Private Funds, Professional Closed Funds, and annual statement of compliance for Standard, Institutional, Administered and Specified Jurisdiction Funds.
• within 20 business days after the month-end: Monthly reporting deadline for Standard Funds (NAV, subscriptions, redemptions).
• within 20 business days after each calendar quarter: Quarterly reporting deadline for Institutional, Administered and Specified Jurisdiction Funds.
• up to three filing extensions per annual filing period: Limit on annual filing extension requests, each requiring a $300 fee.