1. REGULATORY CHANGE IN BERMUDA: AN INDUSTRY PERSPECTIVE  NEIL GLASS – GROUP LEADER, ASSET MANAGEMENT

2. Why Bermuda Created A New Fund Class  In Fall 2013, Bermuda took a bold step to modernize its fund legislation.  Create a new ‘user friendly’ investment fund class that can be registered and launched via a streamlined process.  Executed through the collaboration of the Bermuda Monetary Authority (BMA), Government of Bermuda, Bermuda Business Development Agency (BDA) and key contacts with Bermuda’s fund industry.  Funds could be launched on a fast-track basis using the BMA’s online system ERICA.  Demonstrated Bermuda’s responsiveness to market by enabling a fund to register and launch faster, more efficiently and cost effective.

3. Investment Funds Amendment Act 2013 Self Declared Exempt Funds – Same Day Registration 1. Class A Exempt Funds - targeted to qualified participants. 2. Self Certification- No regulatory approvals. Electronic filing of Certificate and Offering Document only with the Bermuda Monetary Authority (“BMA”). 3. Immediate launch.

4. Class A Exempt Fund: Qualified Participants 1. High income private investors. 2. High net worth private investors. 3. Sophisticated private investors. 4. Institutional investors.

5. Class A Exempt Fund: Investment Manager 1. Authorized by the BMA, the SEC or by other foreign regulator recognized by the BMA. 2. Gross assets under management individually or as part of a group of at least $100 Million Dollars and carrying on business in a jurisdiction recognized by the BMA. OR

6. Class A Exempt Fund: Fees ( in US$) 1. BMA Initial/Annual filing fee $1,500 2. Registrar of Companies Incorporation fee1,995 3. Tax Assurance certificate 170 4. Certificate of Incorporation 277 5. Registrar of Companies Filing fee 82 6. Non-Licensed Person fee (AML)930 Total Fees to Launch: $4,954

7. Investment Funds Act 2006: Class B Exempted Fund 1. New Class B Exempted Fund. 2. Existing Exempted Funds Grandfathered. 3. Subject to Approval Process.

8. Investment Funds Act 2006: Standard, Authorised and Institutional Funds 1. Standard Fund. Retail. Overview. 2. Administered Fund. Local fund admin requirement. Overview. 3. Institutional Fund. Minimum investment of US$100,000 or a qualified participant.

9. Private Equity Funds: Not Subject To IFA 1. Private Fund Exclusion: private offer to less than 20 investors. 2. Closed Ended Funds. No investor redemption rights. 3. Limited Partnership. No Bermuda GP required.

10. Updates and Future Initiatives 1. US-Bermuda FATCA IGA Model 2 signed. 2. UK-Bermuda FATCA IGA Model 2 signed. 3. AIFMD: Co-Operation Agreements signed.