1. September 30, 2008 BIBA ROUNDTABLE Regulatory Panel

2. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 2 Relevant regulation and oversight Companies Act Investment Funds Act 2006 Segregated Accounts Companies Act Investment Business Act Approved auditor and other service providers Qualifications and oversight of auditors GAAP and GAAS acceptable to the Bermuda Monetary Authority Good infrastructure (public accountants, lawyers, bankers and administrators)

3. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 3 Bermuda Effective regulation Presence of experienced service providers

4. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 4 Bermuda Companies Act Covering all entities formed in Bermuda Outlines responsibilities of companies and their directors Accounting and audit standards to be used Reporting requirements

5. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 5 Investment Funds Act 2006 The IFA introduced classes of funds – institutional, administered and standard exempted and excluded funds licensing of fund administrators

6. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 6 Segregated Accounts Companies Act Allows for the statutory division of accounts Liabilities of one account/cell cannot be claimed against the assets of another cell May offer different choices (e.g. strategies) within the same company

7. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 7 Investment Business Act Governs those carrying on investment business from Bermuda Includes dealing in or managing investments and offering investment advice Exceptions include provisions of services to sophisticated investors, funds authorised under the Investment Funds Act and those excluded from the IFA Focuses on the concept of fit and proper management

8. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 8 Approved auditor and oversight Auditors and other service providers must be approved by the BMA under the various financial services acts Focus is on fit and proper persons to carry out the required role Anyone practicing public accounting in Bermuda must be a member in good standing with the Institute of Chartered Accountants of Bermuda

9. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 9 Acceptable accounting and auditing standards All major GAAP Bermuda/Canada, US, UK, IFRS All major GAAS Bermuda/Canada, US, UK, IFRS

10. © 2008 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 10 Firms Big 4 firms as well as other well known names Range in size from 100 – 225 Providing audit, tax (corporate and personal) and advisory service with particular concentration in financial services (funds, insurance and banking) Significant amount of Partner involvement in engagements

11. © 2007 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 11 Questions

12. © 2007 KPMG, the Bermuda member firm of KPMG International, a Swiss cooperative. All rights reserved. Printed in Bermuda. 12 The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Presenters’ contact details Craig Bridgewater +441 294 2647 cbridgewater@kpmg.bmwww.kpmg.bm