NOTICE - Amendments to Investment Funds Act 2006 (2016-10-19)

Summary

This BMA notice explains amendments to the Investment Funds Act 2006 that took effect on 1 October 2016, made to align with the new Limited Liability Company Act 2016. The amendments introduce a category of Limited Liability Company Funds (LLC Funds) that can be registered under the Funds Act.

• Independent management required: An LLC Fund registered under the Funds Act must be independently managed (not member-managed) to meet the definition of an investment fund under Section 3(2)(a) of the Funds Act.
• ERICA system limitation: The ERICA electronic filing platform has not been updated to include 'LLC' as an entity type option.
• Manual disclosure workaround: Agents submitting on behalf of an LLC Fund must include entity type, and the name and address of the independent manager, in the 'comments' section of the ERICA submission form.
• Further reference: A complete list of consequential amendments is available at page 157 of the LLC Act via www.bermudalaws.bm.

Key obligations

• An LLC Fund registering under the Investment Funds Act 2006 must be independently managed rather than member-managed to satisfy the statutory definition of an investment fund
• Agents submitting fund filings on behalf of an LLC Fund via ERICA must manually disclose entity type and the name and address of the independent manager in the comments section of the submission form

Applies to

Limited Liability Company Funds (LLC Funds), investment funds, fund agents/administrators submitting via ERICA

Deadlines

• 1st October 2016: Effective date of the amendments to the Investment Funds Act 2006 relating to LLC Funds

Related documents

• This document amends Investment Funds Act 2006