Investment Business (Exemptions) Order 1999

Link to law: http://www.bermudalaws.bm/Laws/Annual%20Laws/1999/Statutory%20Instruments/Investment%20Business%20%28Exemptions%29%20Order%201999.pdf

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Investment Business (Exemptions) Order 1999
INVESTMENT BUSINESS (EXEMPTIONS) ORDER 1999 - REVOKED BY 1998


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BR 68 / 1999

INVESTMENT BUSINESS ACT 1998

1998 : 34

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 1999



In exercise of the powers conferred upon him by section 5(4) of
the Investment Business Act 1998, the Minister of Finance makes the
following order:―

Citation and commencement
1 This Order may be cited as the Investment Business
(Exemptions) Order 1999 and shall come into operation on 1 January
2000.

Interpretation
2 In this Order “the Act” means the Investment Business Act 1998.

Amends Schedule
3 The Schedule to the Investment Business Act 1998 is amended
by repealing paragraph 2 and substituting the following paragraph―

“2 (1) A person that carries on investment business in or from
within Bermuda is exempted from the requirement to hold a
licence under the Act if―

(a) such person is not a market intermediary and provides
investment services exclusively for the following classes of
investors―

(i) sophisticated private investor;

(ii) high net worth private investor;

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 1999


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(iii) high income private investor;

(iv) a body corporate in which all the shareholders fall within
the classes of persons in paragraph (i), (ii) or (iii);

(v) a partnership in which all the partners fall within the
classes of persons in paragraph (i), (ii) or (iii);

(vi) a trust in which all the beneficiaries fall within the
classes of persons in paragraph (i), (ii) or (iii);

(vii) a body corporate that has total assets of not less than
five million dollars, whether such assets are held solely
by the corporate body or held partly by the corporate
body and partly by any other corporate body of which it
is a subsidiary company or a holding company;

(viii) an unincorporated association or a trust, that has total
assets of not less than five million dollars; or

(ix) a collective investment scheme approved by the
Authority under the Bermuda Monetary Authority
(Collective Investment Scheme Classification)
Regulations 1998;

(b) such a person provides investment services to not more than
twenty persons at any time, and does not provide investment
services to, or solicit investment business from, the public;

(c) such a person carries on investment business corresponding
to investment business under the Act in a country or
territory outside Bermuda from a registered office or a place
of business in Bermuda and is for the time being licensed or
authorised by a recognised regulatory authority to conduct
such investment business in that country or territory; or

(d) such a person is registered as an insurer under the
Insurance Act 1978 and carries on long term insurance
business with the meaning of section 3(2) of this Act;

(2) For the purposes of subparagraph (1)―

“high income private investor” means an individual who had
an individual income in excess of $200,000 in each of
the previous two years or had a joint income with that
person’s spouse in excess of $300,000 in each of those
years, and has a reasonable expectation of reaching the
same income level in the current year;

“high net worth private investor” means an individual whose
net worth or joint net worth with that person’s spouse at
the time of purchasing the securities exceeds

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 1999


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$1,000,000; and “net worth” means the excess of total
assets at fair market value over total liabilities;

“holding company” has the same meaning as in the
Companies Act 1981;

“investment services” means activities undertaken in the
course of carrying on investment business;

“market intermediary” means a person who engages or holds
himself out as engaging in or from within Bermuda in
the business of dealing in securities as principal or
agent, other than dealing in securities purchased by the
person for his own account for investment only and not
with a view to resale or distribution;

“recognised regulatory authority” means an authority
exercising in a country or territory outside Bermuda
functions and powers corresponding to the functions
and powers of the Authority under this Act, which the
Authority has declared, by notice published in the
Gazette, to be a recognised authority for the purposes of
this paragraph;

“sophisticated private investor” means―

(a) an individual who has such knowledge and
experience in financial and business matters that he
is capable of evaluating the merits and risks of the
prospective purchase of securities; and

(b) who, in respect of each transaction deals in amounts
of not less than $100,000;

“subsidiary company” has the same meaning as in the
Companies Act 1981.

(3) Every person who holds himself out as carrying on
investment business in or from within Bermuda and who
qualifies for exemption under this paragraph shall provide
the Authority with a declaration in such form as the
Authority may approve, declaring that he is so qualified by

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 1999


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virtue of any of the matters specified in subparagraphs (1)(a),
(b), (c) or (d).





Made this 1st day of December 1999







Acting Minister of Finance