16/12/19

BERMUDA: Session for New Economic Substance Regulation Being Demanded.

As published on royalgazette.com, Friday December 6, 2019.

An information session about Bermuda’s economic substance legislation and its impact on island companies attracted more than 120 people, while another 50 dialled into the session, organisers said.

The Institute of Directors Bermuda organised the session in conjunction with the Association of Bermuda International Companies.

Attendees and those who dialled in heard from Kenneth Joaquin, the Registrar of Companies, as well as members of his team, Michael Frith and Venous Memari.

Rochelle Simons, IoD Bermuda chairwoman, said: “IoD members and the business community at large are eagerly awaiting economic substance updates and this was borne out by the fact that we were over-subscribed and that people were prepared to dial into the session.”

Mrs Simons said that Mr Joaquin highlighted the impact of the Economic Substance Amendment (No 2) Act 2019 that was presented to MPs on November 30.

She said: “The Amendment Act changes the definition of holding entity and refines a few other sections of the legislation to be in keeping with international standards.

“It is anticipated that the Amendment Act will come into force later this month, following which the Economic Substance Regulations will be enacted quickly by negative resolution. Guidance Notes will be released by year end.

“As directors, they need to understand how these regulations will affect both their own business and the business of the boards they sit on.

“The Registrar of Companies acknowledged that while the presentation of the Amendment Act and the approval of the same by Members of Parliament during the next few weeks is a milestone reached, he and his team will continue to press forward to build and test the infrastructure that will accept the first filings in June 2020 for financial years ending December 31, 2019.

“We anticipate hosting future events that will keep the membership informed and encouraged as business owners and the Bermuda Government engage a new reporting platform.”