The business environment in Bermuda features: 

• A stable political and economic environment with low inflation, a supportive regulatory climate and a currency based on the U.S. dollar
• A partnership of government and private sector interests working together to foster an environment that is attractive to international corporate and individual needs
• Good supply of financial, accounting and other professional business services
• Geographic location convenient to both European and North American time zones, with direct air service to major cities in North America and to London

Bermuda Law Relating to Mutual Funds

Bermuda’s legal system is based on English Common Law augmented by local statutes. The local regulations relating to financial activities are designed to be straightforward and efficient, emphasising accountability and financial responsibility. The statutory framework requires licensed institutions to monitor the ultimate users of Bermuda’s financial system through "know your client" procedures and other informed involvement.

The Proceeds of Crime legislation imposes on Butterfield Fund Services (Bermuda) Limited responsibilities regarding identification of customers, record-keeping, internal reporting of suspected money laundering activities and ensuring employees are aware of the Proceeds of Crime legislation
and the compliance procedures maintained by the business.

The Bermuda Monetary Authority (BMA) regulates mutual funds, in accordance with published policies. The BMA routinely monitors the private sector to ensure high standards are maintained with regard to regulation, policy and administration. The BMA imposes requirements for the establishment and operation of a mutual fund, such as the need to appoint a local auditor, registrar and transfer agent, and corporate secretary, to present annual audited financial statements to shareholders, and in some cases to appoint a local custodian. The BMA requires detailed disclosure regarding the fund, company investment strategy, fund manager, advisers and  third parties. Each mutual fund must normally be managed by a Bermuda-registered management company, which may delegate the investment advisory function outside Bermuda.