Bermuda - with its long history of not only providing first
class financial and professional services but doing so within
a 'gold standard' regulatory framework - is one of the
world's leading financial centres.
Bermuda offers a well-developed legal framework that
allows for the seamless incorporation/formation of
Bermuda vehicles and subsequent or contemporaneous creation
of group structures. The flexibility of Bermuda's law,
including with respect to its company statute and partnership
legislation, means that service providers are able to work with
clients to reach their commercial objectives.
Bermuda is an income tax neutral financial centre, meaning
that structures domiciled there are not the subject of direct
taxation of profits or capital gains in the jurisdiction. This
avoids adding a layer of complexity to international
structures. However, it should be remembered that there may be
taxes in the jurisdictions where shareholders or investors are
located and they may be subject to taxation under their own tax
rules on any income and capital gains.
The Island has a strong (re)insurance industry and has emerged
as the leader in the insurance-linked securities (ILS) sector.
This was through a commitment to embrace and encourage the ILS
sset class by creating and maintaining the right legal and
regulatory environment in which those structures could thrive.
During the first quarter of 2016 Bermuda based special purpose
insurers accounted for 62% of the new insurance volume and the
average deal size for ILS transactions in Bermuda was $228
million, the highest on record since Bermuda entered the ILS
space in 2010¹.
With international banks, accounting firms, offshore
legal powerhouses, insurance managers, investment managers
and administrators, Bermuda is able to meet all of a
client's service needs within the jurisdiction. Being able
to operate in an environment with the ability to physically
meet and establish working relationships with service
providers, has undoubtedly been an attractive proposition.
For firms which already have a (re)insurance presence in
Bermuda, we are seeing continued interest in expanding their
offering to include ILS. This offers clients the chance to
build a new line of business within a familiar legal and
regulatory framework with service providers (or their
affiliates) well versed with how they do business.
When working with family businesses, it's sometimes surprising to see the gap between the founder and the next generation, particularly when the next generation do not see the importance of the business.
Luxembourg ranks as the largest EU fund domicile jurisdiction
and the second largest fund domicile jurisdiction globally.
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