David Burt, Bermuda’s Premier and Minister of Finance has, at an event hosted by the Bermuda branch of the Alternative Investment Managers Association, proposed a relaxation of that territory’s business ownership rule which currently requires that, subject to certain exceptions, any entity carrying on business locally must be at least 60% owned by Bermudians. The change is intended to increase investment by permanent resident certificate (“PRC”) holders as well as international investors.
The proposal recognises the fact that more avenues for investment inside the economy need to be created, but that not all of that investment will come from people who have Bermudian status. Mr Burt also noted that while the holders of PRCs had the right to live and work in Bermuda, their opportunities to invest were restricted. He noted that much of the money that was made in Bermuda ends up overseas and recognised that the strict ownership rules discourage entrepreneurs and investment. He said the Government hoped that the changes would encourage more of the money to remain in the local economy and would also stimulate growth on the island.
More information on the proposed changes will be released with the budget statement which is due to be published on February 16.
