The Bermuda Stock Exchange has received Approved Stock Exchange status under Australia?s Foreign Investment Fund (FIF) taxation rules.

CEO of the BSX Greg Wojciechowski said that recognition by the Australian authorities is a ?broad-based nod? at both the Exchange?s and Bermuda?s efforts to promote regulatory cooperation and transparency.

?Yet again overseas regulators are recognising the technical and regulatory infrastructure the BSX has put in place. These types of designations, whether from Australia or elsewhere, do give investors and issuing companies a level of comfort that the Exchange is operating in and maintains international standards of regulation. That really further translates into what is happening in Bermuda because while the Exchange is getting the designation it is also regulations in the country that underpin what the Exchange is doing.?

The designation effectively provides Australians with guidance about when unrealised gains on investments held in a foreign country may be exempt from the Foreign Investment Fund taxation measures. In practical terms, Mr. Wojciechowski said: ?We hope that this designation will result in an opportunity for increased listing and trading activity across the BSX by Australian investors as they will be more comfortable with the tax treatment of their foreign investments as set out under the FIF taxation rules.?

The most widely applied exemption from the FIF taxation rules occurs when the foreign company is principally engaged in an eligible activity that does not fall within a ?black list? of activities under the Australian Income Tax Assessment Act 1936. One of the ways a foreign company is deemed to be engaged in eligible activities if it is listed on an Approved Stock Exchange.

Mr. Wojciechowski said: ?The BSX is very proud of the stock exchange solution that has been created and deployed in Bermuda and is very encouraged by the support, guidance and recognition shown to us by the international regulatory and financial services community. We anticipate that this development is the first of many exciting developments to come and are proud that the BSX and Bermuda continues to set the commercial and regulatory standard offshore.?

Beyond the Australia recognition, the BSX is a Recognised Investment Exchange by the Bermuda Monetary Authority; a Designated Offshore Securities Market by the US Securities and Exchange Commission, is a full member of the World Federation of Exchanges and an affiliate member of IOSCO. It also has a Approved Organisation Status of the London Stock Exchange and Approved Stock Exchange under the Australian Foreign Investment Fund taxation rules. It is continuing to seek and receive designations from other national regulatory agencies and remains cautiously optimistic that an anticipated designation in the UK will come to fruition in the short term.