This morning the Minister for the Cabinet Office The Hon Wayne L. Furbert, JP, MP delivered remarks at the Society of Trust and Estate Practitioners (STEP) Bermuda Conference, held at the Bermuda Underwater Exploration Institute.
Minister Furbert said during his remarks, “As everyone in this room knows, Bermuda is a leading trust jurisdiction. It has been providing fiduciary services for private clients for more than 100 years. During that time it has developed a reputation as a premier jurisdiction with a stable and reliable legal system and experience trust professionals.
"My friends in the industry tell me that Bermuda continues to lead with innovative developments such as 'Statutory Hastings-Bass' and 'Section 47 Applications'. International families take comfort in Bermuda’s reputation, stability, long standing English Common Law System (with right of appeal to the Privy Council) and the integration of the trust sector with the insurance, funds and wealth management industries, and with emerging areas such as Fintech. The Government recognizes the importance of the trust industry to Bermuda. The industry is a significant employer in Bermuda, and it brings to our shores business from some of the world’s wealthiest and most influential families and business.
"As I mentioned at the outset of my remarks, Bermuda and all jurisdictions are under pressure from international organizations, Governments and NGOs. We have faced challenges such as FATCA, CRS, Beneficial Ownership Registers, BEPS, Economic Substance and more. As a Government we could not have faced these challenges without the support and participation of the trust industry. The Government is committed to continuing to work with the private client pillar, and industry in general, to ensure that Bermuda remains a premier jurisdiction. And, in return, I hope that I can count on the industry in Bermuda to work with the Government to ensure that the jurisdiction remains in the top tier of international financial centres.
"Bermuda boasts the ability to create trusts that have an indefinite duration; provides an efficient regime for unregulated private funds and close ended funds and a lightly regulated regime for exempted funds; and is one of the strongest insurance markets in the world. Insurance products are often used to provide stability, investment growth and tax efficiency with respect to private and commercial trust structures. Bermuda trusts can be used for asset preservation. Bermuda’s strong asset protection legislation, commonly known as ‘firewall’ legislation, seeks to defend and protect off shore trusts from attack – whether from creditors, spouses or heirs – and from pressure from the onshore world. From a tax perspective, Bermuda is attractive for international structuring because it does not impose income or capital gains tax. Further, Bermuda ‘exempted’ entities (established for international clients) may apply for an assurance from the Minister of Finance that such taxes will not be imposed on such entities before 31 March 2035. Bermuda also does not impose exchange controls on non-Bermuda assets. Bermuda’s infrastructure and availability of internationally renowned financial service providers is impressive. Bermuda also reaps the benefits of having a number of effective international agreements that facilitate business between Bermuda and other jurisdictions.
"There are all sorts of international pressures on Bermuda, and in particular, the private client industry and the government recognizes that we must keep step with these changes, because it is key to maintaining the reputation of Bermuda as an international jurisdiction.
"Bermuda is a beautiful environment in which to do business, and the Government is committed to working with the private client pillar, and working with industry in general to ensure that Bermuda remains a premier jurisdiction."