Although poor in natural resources, Bermuda has been blessed with the most important necessary condition for economic growth: a stable, representative government.Bermuda’s common law and parliamentary traditions reach deep into the past. Other conditions contributing to Bermuda’s success as a business destination include a stable currency pegged to the United States dollar and its convenient location part-way between Europe and North America.The Bermuda Monetary Authority (BMA) supervises, regulates and inspects financial institutions operating in Bermuda. It issues Bermuda’s national currency; manages exchange control transactions; assists other authorities in Bermuda with the detection and prevention of financial crime; advises the Government and public bodies on financial and monetary matters and regulates the Bermuda Stock Exchange and supervises the banks of Bermuda.The BMA has instituted an aggressive policy agenda to enhance Bermuda’s regulatory framework in order to achieve equivalence with other key jurisdictions (such as the European Union and United States). The BMA’s intent is to regulate in order to meet or exceed international standards.Given current economic challenges, it is good news to see the following developments here in Bermuda:l The proposed extension of the work permit term limit to ten years from six for senior employees.l New legislation that sets uniform requirements for business retention of accounting records at five years, based on recommendations by the Organisation for Economic Co-operation and Development.l Confirmation by the Paris Memorandum of Understanding that Bermuda’s shipping register topped the safest tier for a third year, recording 270 inspections and zero detentionsl The continued expansion of Bermuda’s network of tax information exchange agreements (“TIEAs”).The Bermuda-Canada TIEA went into effect on July 1. With Canadian companies heavily involved in the international business sector and more recently in the banking arena, the TIEA proves a benefit for both countries.Bermuda will benefit from an exemption from Canadian taxation on the dividends of foreign affiliates resident in Bermuda that are paid to their Canadian parent companies out of active business income earned in Bermuda.Canadian corporations are allowed to benefit from available tax savings due to Bermuda’s lack of corporate tax, capital gains tax and withholding tax. Essentially, now there is the potential for Canadian corporations to move firms from double-tax jurisdictions into Bermuda.There are also encouraging developments in the areas of funds, and insurance.Although hedge funds have already domiciled in Bermuda for tax purposes, Bermuda is vying for a larger stake in this industry by having operations physically based on the Island. Strategies such as creating a zone for hedge funds in Hamilton and seeking compliance of the regulatory system with that of the EU will encourage the movement of hedge funds onto the Island.Bermuda’s insurance industry continues to maintain its reputable position with the assistance of its captive insurance market. In 2010 Bermuda retained its lead as the world’s number one captive sector and even experienced an increase of 66 per cent in gross premiums written from the prior year. As the third largest insurance market in the world, Bermuda has earned a reputation as a pioneer and leader in the offshore insurance industry. Through assuming Solvency II equivalence, Bermuda is able to provide EU-based companies with a location and human resources on the doorstep of the US market, and a jurisdiction with EU standard regulation and transparency. It also provides Bermuda-based groups with enhanced access to European markets.Bermuda will remain a leading centre for business because it continues to adapt to the needs of the business world. With new developments on the Island, specifically in the areas of regulation, TIEAs, funds and insurance, Bermuda is poised to take on more international business in the future.Attorney James Bodi is a member of the Corporate and Commercial Practice Group of Appleby. A copy of this column can be found on the Appleby website at www.applebyglobal.com.This column should not be used as a substitute for professional legal advice. Before proceeding with any matters described herein, persons are advised to consult with a lawyer.