Just as Cayman seems to be readying the red carpet for a new industry sector in reinsurance, Bermuda should be rolling it out for fund management, according to a recent article in the Bermuda Gazette.
EY Partner Jessel Mendes, chair of the Bermuda Asset Management Task Force, reckons that each fund manager could be worth as much as US$5m in GDP and ten local jobs.
He seems to hit the nail on the head with his analysis of the additional measures the government needs to take to attract business in this area:
- Speed to market: Work permit approvals and regulatory procedures have to be dealt with as effectively and efficiently as possible to enable asset managers to be up and running quickly. “One asset manager told us his experience setting up here was great, another had a very different experience,” Mr Mendes said. “We need to make it consistently good.”
- Focused sales plan: “We should not be satisfied that people are aware of Bermuda, we want to see them using Bermuda,” Mr Mendes said. Getting people here and showing them the Island’s business infrastructure and living attractions is imperative. He gave the example of a fund manager who had planned to set up in another offshore location and had come to Bermuda for a wedding. When he was shown around the Island, he changed his mind and opted to come to Bermuda instead. Knowledge of why asset managers choose Bermuda and why they opt for other domiciles is important.
- Residents’ understanding of the value of international business. More efforts are needed to make sure that people know the impact of international business to the local economy.