Investment Business (Exemptions) Order 2004
INVESTMENT BUSINESS (EXEMPTIONS) ORDER 2004

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BR 6/2004

THE INVESTMENT BUSINESS ACT 2003

2003 : 20

THE INVESTMENT BUSINESS (EXEMPTIONS) ORDER 2004

In exercise of the powers conferred upon him by section 13 of the
Investment Business Act 2003, the Minister of Finance, acting on the
advice of the Bermuda Monetary Authority, makes the following Order :

Citation
1 This Order may be cited as the Investment Business
(Exemptions) Order 2004.

Interpretation
2 In this Order

"Act" means the Investment Business Act 2003;

"collective investment schemes" has the same meaning as in the
Bermuda Monetary Authority (Collective Investment Scheme
Classification) Regulations 1998 or any provision of law
amending or replacing such Regulations, and includes
collective investment schemes established or registered
outside Bermuda;

"high income private investor" means an individual who has had
a personal income in excess of $200,000 in each of the two
years preceding the current year or has 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; and "current year"
means the year in which he purchases an investment;

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 2004

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"high net worth private investor" means an individual whose net
worth or joint net worth with that person's spouse in the year
in which he purchases an investment exceeds $1,000,000;
and "net worth" means the excess of total assets at fair
market value over total liabilities;

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

"market intermediary" means a person who engages or holds
himself out as engaging in the business of dealing in
investments as principal or agent on an investment
exchange;

"sophisticated private investor" means

(a) an individual who has such knowledge of, and
experience in, financial and business matters as would
enable him to properly evaluate the merits and risks of a
prospective purchase of investments; and

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

Exemption
3 (1) Subject to the conditions expressed in relation to each of
them, persons specified in the Schedule (being persons carrying on
investment business in or from Bermuda) are exempt from the
requirement to hold a licence under the Act.

(2) Every person who qualifies for exemption under paragraph
1 or 3 of the Schedule shall provide the Authority with a declaration in
such form as the Authority may require, declaring that he is so qualified
by virtue of the applicable paragraph of the Schedule.

SCHEDULE

Exempted Persons

1. Persons, other than market intermediaries, who provide
investment services exclusively to one or more of the following classes of
undertakings 

(a) high income private investors;

(b) high net worth private investors;

(c) sophisticated private investors;

(d) collective investment schemes approved by the Authority
under the Bermuda Monetary Authority (Collective

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 2004

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Investment Scheme Classification) Regulations 1998 or
any provision of law amending or replacing such
Regulations;

(e) bodies corporate, each of which has total assets of not
less than five million dollars, where such assets are held
solely by the body corporate or held partly by the body
corporate and partly by one or more members of a group
of which it is a member;

(f) unincorporated associations, partnerships or trusts,
each of which has total assets of not less than five
million dollars, where such assets are held solely by
such association, partnership or trust or held partly by
it and partly by one or more members of a group of
which it is a member;

(g) bodies corporate, all of whose shareholders fall within
one or more of the subparagraphs of this paragraph,
except subparagraph (d);

(h) partnerships, all of whose members fall within one or
more of the subparagraphs of this paragraph, except
subparagraph (d);

(i) trusts, all of whose beneficiaries fall within one or more
of the subparagraphs of this paragraph, except
subparagraph (d).

2. Collective investment schemes.

3. Persons who provide investment services to not more than
twenty persons at any time, and do not provide investment services to, or
solicit investment business from, the public.

4. (1) Persons who are registered under the Insurance Act 1978 to
carry on insurance business (within the meaning of section 1(1) of that
Act).

(2) An exemption under this paragraph applies only to persons
who provide investment services in connection with the insurance
business for which those persons are registered under that Act.

5. (1) Persons registered under the Insurance Act 1978 as
insurance managers, brokers, agents, salesmen, or members of an
association of underwriters (within the meaning of section 1 of that Act)
recognised by the Authority.

(2) An exemption under this paragraph applies only to persons
who provide investment services in connection with the business for
which they are registered under that Act.

INVESTMENT BUSINESS (EXEMPTIONS) ORDER 2004

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6. The Government of Bermuda.

7. The Bermuda Monetary Authority.

8. Public Authorities established in Bermuda.

Made this 3rd day of February, 2004.

Minister of Finance