Bermuda?s fund administrators are to be licensed for the first time as a result of the Investment Funds Act 2006 ? and the Bermuda International Business Association (BIBA) has given a warm welcome to the new law.

BIBA said yesterday the Act clarified the regulation and framework of public and institutional funds and would strengthen the Island?s position in the international funds market.

BIBA chief executive officer Cheryl Packwood said Bermuda was one of the leading choices for companies to administer their funds, regardless of where they choose to domicile.

She added that Bermuda administered a substantial proportion of the funds which register in the Cayman Islands, for instance.

?BIBA?s members are enthusiastic about both the intent and content of this legislation. Combined with Bermuda?s superior infrastructure, reputation and intellectual capital, the Island is poised to effectively garner its share of the booming global fund business,? Ms Packwood said.

?This is yet another example of the positive results of collaborative consultation between Bermuda?s private and public sector partnership. When the Ministry of Finance and the Bermuda Monetary Authority (BMA) commenced writing this Act, as is the policy in Bermuda, they asked for the input of the financial industry in reviewing and recommending pertinent changes or additions to it prior to presenting the Act before the House of Assembly.

?BIBA?s Collective Investment Scheme Committee, which is chaired by Sharon Beesley, executive director and general counsel of ISIS Limited, and comprises more than 40 members who represent the executive levels of all areas of legal, accounting and other financial services in Bermuda, spent enormous hours scrutinising, reviewing and suggesting changes throughout ongoing consultation with Government and the BMA.

?The result is an Act that brings clarity and certainty about the process for registering and licensing funds and greatly enhances Bermuda?s competitive edge in the international fund community.?

Finance Minister Paula Cox, who successfully piloted the Act to unanimous approval by the House of Assembly, is confident that the legislation would enhance Bermuda?s reputation as a fund jurisdiction.

Quoted in a BIBA statement, Ms Cox said Bermuda had to streamline the incorporation process for investment funds and eliminate unnecessary administrative procedures to augment Bermuda?s competitive edge by bringing more clarity and certainty to the authorization process.

Minister Cox noted that even though fund administrators had not been licensed in the past, it would not be true to say that there had been no regulation of them.

?Presently, fund administrators are regulated as regulated entities under the Proceeds of Crime Act 1977 and are subject to a higher level of due diligence when handling subscriptions and redemptions similar to those imposed on banks, trust companies and investment providers,? Ms Cox said.

?Regulation has become more important to the ongoing successful development of this sector. In fact, to gain recognition in the global marketplace, the stakeholders of this sector support regulation.

?It is important that these service providers are recognised to have proper personnel operating their businesses with the proper systems in order to continue to secure business from all parts of the world.?