Log In

Reset Password

Govt to lift 60/40 restrictions for several sectors

Government intends to lift the 60/40 restriction on publicly traded companies across several sectors, Business Development and Tourism Minister Wayne Furbert announced yesterday.

During the Budget debate on his department, Mr Furbert told MPs in the House of Assembly that a number of “targeted sectors” would be exempted from the rule which requires at least 60 percent Bermudian ownership.

He added that the 60/40 rule restriction was negatively impacting the Bermuda economy.

The easing of the restrictions will make it easier for BSX-listed companies such as KeyTech, BF&M Ltd, Argus Group Holdings to raise capital, by giving them unrestricted access to foreign investors.

Government will make amendments to the Companies Act 1981 ”which will allow relief from the foreign investment restrictions to be automatic upon the subject company on a recognised or appointed exchange which will include the Bermuda Stock Exchange”, Mr Furbert said.

“These companies would be targeted sectors such as telecommunications, energy production, insurance, green initiatives to do with energy, banking, hotel development, general technological advancement, airline and shipping, to b exempted from the 60/40 restriction.

“We will add other sectors when the need arises.”

Mr Furbert appeared to suggest that the 60/40 rule had outlived its original purpose in some sectors at least.

“In the past this approach has supported the accumulation of wealth within certain segments of the Bermudian economy, when sufficient Bermudian investment could be obtained,” he said.

“This restriction is now having a negative impact on the growth and reinvigoration of the Bermudian economy.”

Business Development Minister Wayne Furbert: Easing foreign ownership restrictions across several sectors

You must be Registered or to post comment or to vote.

Published March 15, 2012 at 2:00 am (Updated March 15, 2012 at 9:51 am)

Govt to lift 60/40 restrictions for several sectors

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon