Bermuda: Business Advantage The leader in offshore investing in today's global marketplace.
By Greg Wojciechowski
The country of Bermuda is one of the world's top offshore financial markets, home to more than 13,000 international firms and most of the Fortune 100 companies. Its strategic location at the crossroads of North America and Europe and its complimentary time zone with Asia have helped transform this self-governing British Overseas Territory into an international business centre. Today, more than 1,600 insurance companies are domiciled here, making up the bulk of the nation's rapidly growing financial sector.
These firms find their business made easier by the Bermuda Stock Exchange (BSX), one of the world's top electronic markets. Boasting some 400 listed issuers and a combined market capitalization of approximately US$330 billion, the BSX has made Bermuda the world leader and the standard by which other jurisdictions measure business implementation and regulation. Trading on this sophisticated electronic market takes place on the Exchange's "BEST" trading platform, which is based on a central limit order book trading model and tightly integrated with the Bermuda Securities Depository. The BSX is now the world's top offshore exchange for the listing of mutual and hedge funds, unit trusts and limited partnerships.
The island's financial roster includes household names such as Citigroup, BISYS, the Bank of New York and HSBC (which acquired the Bank of Bermuda and catapulted the nation onto the forefront of financial services). All of these institutions have given Bermuda the leading edge in hedge fund servicing capabilities.
Reputation based on integrity and innovation
Focused on the needs of clients, Bermuda's pragmatic approach to creating an operational, technical and regulatory infrastructure is the result of a collaborative effort between the private and public sectors. Maintaining integrity throughout the entire system, this model keeps Bermuda's regulatory oversight at prudent levels while encouraging support and appreciation for the entrepreneurial spirit that drives innovation.
The "Launch 'n List" is a prime example of an innovative product made available to the hedge fund industry. A combined effort of the Bermuda International Business Association (BIBA), the Bermuda Monetary Authority (BMA) and the BSX, "Launch 'n List" was created in response to increasing regulatory requirements that were making getting to market more costly and time-consuming.
As one of the early pioneers in the offshore fund business, Bermuda has developed a commercially sensible level of regulation based upon years of experience, as well as produced a profound and knowledgeable infrastructure of service providers that extends to global fund administrators, attorneys, banks, auditors and the BSX.
In existence since 1971, the BSX has made a name for itself in the global stock exchange industry with one of the world's most respected and sophisticated offshore jurisdictions, trading and settling stock and cash transactions daily through its electronic trading, settlement and depository systems. The Exchange's commercially sensible regulatory approach is based upon currently accepted international standards, striving to achieve an appropriate balance between issuers' quick access to the market and the necessary safeguards and information for investors to make informed decisions on the value, risk and merit of listed securities.
The global fund industry has embraced the BSX's regulatory approach. Of the 400-plus listed vehicles on the BSX, more than 100 are hedge funds or have hedge fund attributes.
Although fund structures seek stock exchange listings for a variety of reasons, regulatory oversight is one of the primary motivations. By listing, the structure subjects itself to regulation that creates transparency and ensures that the market has critical pricing and corporate information readily available. The prestige generated by listing increases the potential investor base, and the pricing information enables prospective investors to more easily and regularly determine the value of their investments.
Meeting Knowledgeable Investors' Needs Now, and in the Future
Hedge fund regulation continues to be a topic of global interest in the industry, with individual jurisdictions adopting different approaches. Bermuda's approach, and that of the BSX, is to support this product segment for a distinct and targeted investor demographic of institutions and sophisticated investors. The objective in Bermuda has been to strike the delicate balance between regulation and innovation, which has been successfully accomplished through a risk- and disclosure-based regulatory framework.
With this optimal balance in place, Bermuda will continue to play a key role in the fund and hedge fund industries as it seeks ways to add value and provide additional support through innovation in its core industries. Which isn't surprising, given that the stakeholders in Bermuda have always embraced change in anticipation of the potential opportunities that may follow.
And make no mistake, as these huge opportunities in the global stock exchange industry continue to present themselves, Bermuda and the BSX — offering a strategic geographical location, a unique approach to regulatory infrastructure and an internationally recognized electronic stock exchange platform - are superbly positioned to take advantage of ever-expanding global opportunities in a way that no other offshore financial market can hope to emulate.
Key Business Contacts
Bermuda International Business Association (BIBA)
Tel: 292-0632 biba.org
Austria
Belgium
Canada
Denmark
Finland
France
Germany
Ireland
Italy
Jamaica
Luxembourg
Netherlands
Norway
Phillipines
Portugal
Spain
Sweden
Switzerland
United States
Leopold Kucher
Eric Arcay
Saul Froomkin
Kjeld Johansen
John Riihiluoma
Edgar Humann
Peter Bubenzer
John Kane
Gioaccino DiMeglio
Winston Laylor
Curt Englehorn
William FP Mulder
CNA Butterfield Jr.
John CR Collis
Portuguese Consulate
ACJ Dean
Jens Juul
Leo Betschart
Gregory Slayton
Book now and celebrate with hotel credits of up to $400 for travel through March 31, 2009. Plus get a 400 Anniversary Passport for additional savings of up to $1000 on island.
Make your Bermuda trip even more memorable with dolphins! Dolphin Quest offers fun, interactive dolphin encounter programs for all. Book your adventure today!
Have a fun-filled vacation with a cycle from Oleander. If you can ride a bicycle, you can easily ride an Oleander scooter. See all of Bermuda...reserve one today!
ExperienceBermuda.com The official web site of the
Bermuda Hotel Association. Copyright 2003/08, HCP/Aboard Publishing, a division of Aboard Publishing, Inc., and subsidiary of The McClatchy Company.
The country of Bermuda is one of the world's top offshore financial markets, home to more than 13,000 international firms and most of the Fortune 100 companies. Its strategic location at the crossroads of North America and Europe and its complimentary time zone with Asia have helped transform this self-governing British Overseas Territory into an international business centre. Today, more than 1,600 insurance companies are domiciled here, making up the bulk of the nation's rapidly growing financial sector. 
The "Launch 'n List" is a prime example of an innovative product made available to the hedge fund industry. A combined effort of the Bermuda International Business Association (BIBA), the Bermuda Monetary Authority (BMA) and the BSX, "Launch 'n List" was created in response to increasing regulatory requirements that were making getting to market more costly and time-consuming. 
The global fund industry has embraced the BSX's regulatory approach. Of the 400-plus listed vehicles on the BSX, more than 100 are hedge funds or have hedge fund attributes.
With this optimal balance in place, Bermuda will continue to play a key role in the fund and hedge fund industries as it seeks ways to add value and provide additional support through innovation in its core industries. Which isn't surprising, given that the stakeholders in Bermuda have always embraced change in anticipation of the potential opportunities that may follow.
Bermuda International Business Association (BIBA)
Book now and celebrate with hotel credits of up to $400 for travel through March 31, 2009. Plus get a 400 Anniversary Passport for additional savings of up to $1000 on island.
Make your Bermuda trip even more memorable with dolphins! Dolphin Quest offers fun, interactive dolphin encounter programs for all. Book your adventure today!
Have a fun-filled vacation with a cycle from Oleander. If you can ride a bicycle, you can easily ride an Oleander scooter. See all of Bermuda...reserve one today! 
