Regulation
Investment Business (Class B Registered Persons) Order 2022
In forceView on BMA's website Source document
Summary
This Order, made under the Investment Business Act 2003, defines who qualifies as a Class B Registered Person for investment business regulation in Bermuda. It sets out categories of persons and entities that may be classified as Class B, based on the type of clients they serve or the scale of their business, and it took effect on 27 July 2022.
- Client based test: A person other than a market intermediary who carries on investment business exclusively with high income, high net worth, or sophisticated private investors, or with an investment fund, qualifies as Class B.
- Asset based test: A body corporate, unincorporated association, partnership or trust with total assets of not less than 5,000,000 dollars (held solely or partly with group members) also qualifies.
- Look through entities: A body corporate, partnership, trust or limited liability company whose shareholders, members or beneficiaries all fall within the qualifying categories above (other than the investment fund category, for some entity types) also qualifies as Class B.
- Small scale test: A person who carries on investment business with no more than twenty persons at any time, and does not solicit or carry on business with the public, qualifies as Class B.
The Order itself is definitional and does not impose ongoing filing or reporting obligations; its effect is to determine which persons fall into the Class B registration category under the Investment Business Act 2003, which affects the licensing and regulatory treatment applicable to them.
Applies to
market intermediaries, investment business providers, Class B Registered Persons under the Investment Business Act 2003, bodies corporate, partnerships, trusts and limited liability companies carrying on investment business
Deadlines
- 27 July 2022: Commencement date on which the Order comes into operation
Related documents
- This document commences Investment Business Act 2003
- This document is made under Investment Business Act 2003