Offshore News: April 2010

20.04.2010: The British Virgin Islands announced the enactment of the Securities and Investment Business Act (SIBA). The document codifies rules on funds domiciled in the islands, and introduces laws to regulate investment business, public issues of securities and market abuse.
The framework for the regulation of BVI funds is not materially altered by the enactment of SIBA, most of the popular concepts remain. Many of the legislative changes made under SIBA and the Mutual Funds Regulations, 2010, merely codify existing BVI FSC policies which have developed over recent years in line with evolving international standards.
Changes introduced by SIBA include: a requirement of BVI funds to have at least two directors; a requirement for BVI funds, licensed managers and licensed administrators to appoint a BVI resident authorised representative, a change in the minimum initial investment by investors investing in professional funds to US$100,000, a requirement for professional and private funds intending not to appoint an investment manager, administrator or custodian to apply to the Financial Services Commission for an exemption.

27.04.2010: Bermuda and Bahrain signed an avoidance of double taxation agreement (DTA). This agreement includes provisions for the full exchange of tax information. The DTA is a reciprocal arrangement between Bermuda and Bahrain, not to tax the repatriated income that an individual or corporate resident of one country has earned in the other country, and which has been taxed.
The provisions of Bermuda's tax information exchange agreement within the DTA were said to include standard means to ensure due process is followed in tax information requests to Bermuda.
In addition to the DTA with Bahrain, Bermuda has TIEAs with Australia, Ireland, New Zealand, the Netherlands, the Nordic countries (including Denmark, Finland, Iceland, Norway and Sweden), Netherlands Antilles and Aruba, Mexico and Japan. The agreements with Canada, Spain, Belgium and Portugal are to be concluded soon.