On 2 June, 2017, the Mortgaging of Aircraft and Aircraft Engines Act, 1999 in Bermuda was amended to remove the requirement that in order for a mortgage over an aircraft or engine to be registered on the Mortgage Register in Bermuda the relevant aircraft or aircraft engine (as the case may be) had to be owned by, leased or chartered to, or otherwise in the lawful possession of a company incorporated in Bermuda. This amendment brings the mortgage registration requirements in line with the changes to the aircraft registration policy implemented in late 2015.

The Bermuda Government has worked over the past several months to coordinate the agreement. Bermuda-registered vessels that are trading into Chinese ports will benefit from reduced fees associated to conducting business in the region, allowing them to be more competitive on a global scale. In addition, this allows the jurisdiction to retain vessels that may have been looking to domicile in other regions, as well as attract new business to the area.

Bermuda Upgrades to First Class with the Cape Town Convention Bermuda is a well-known and respected jurisdiction for financing and registering aircraft. Accordingly, the government of Bermuda recognised that being party to the Convention on International Interests in Mobile Equipment and the related Protocol regarding Aircraft Equipment (known as the “Cape Town Convention”) was essential to retain its position as a leader in this field.

Bermuda Insurance Update - July 2016 The first half of 2016 has been a significant period for the Bermuda insurance sector. The enhanced regulatory status of Solvency II has proven beneficial. Major insurance groups have started seeking approval for the Bermuda Monetary Authority to serve as the group supervisor under the Solvency II regime. In particular, XL Group plc announced that it will be redomiciling its parent company from Ireland to Bermuda. This is on the heels of last year’s new commercial insurer formations and Qatar Reinsurance’s redomicile to Bermuda.

Grandfathered Exempted Funds need to reapply for Registration with the Bermuda Monetary Authority before 3 October 2016 On 3 October 2013, the Investment Funds Amendment Act, 2013 (the “Act”) was passed creating a new dual system of exemptions for qualifying investment funds. The Act, in addition to introducing the Class A Exempted Fund (the “Class A Fund”) and the Class B Exempted Fund (the “Class B Fund”) regimes, also repealed the prior exemption provisions.

Bermuda Introduces LLC Legislation Based on Delaware Statute The Bermuda Government today tabled limited liability company (“LLC”) legislation closely modeled on the Delaware equivalent. LLCs are a hybrid entity combining corporate and partnership characteristics which originated and are widely used in the United States. While a few non-US jurisdictions have made provision for LLCs in their laws, such laws generally incorporate non-US terms and concepts which may be unfamiliar to US counsel.

Bermuda presents a number of benefits for high net worth and ultra high net worth individuals looking to domicile their wealth, as a result the jurisdiction’s Private Client & Trust sector has increased steadily over the years. Read more.

Update: Bermuda’s Partnership law received a significant update with the enactment of the Partnership Amendment Act, 2015, the Exempted Partnerships Amendment Act, 2015, the Limited Partnership Amendment Act, 2015 and the Companies Amendment Act, 2015 (together, the “Partnership Law Amendments”). The Partnership Law Amendments have been in effect since December 2015 and Bermuda partnerships and companies are now able to avail themselves of the provisions as described below.

The Contracts (Rights of Third Parties) Act, 2016 (the “Act”) was recently enacted by the Bermuda Legislature and is now fully operative. The Act is significant in that, subject to its terms, it permits parties to vary the common law doctrine of “privity of contract” which provides that only parties to a contract may enjoy the benefits and enforce the provisions of that contract. Read more. (Subscription required.)

2015 was another active year for the Conyers Bermuda corporate practice. Our workflow paralleled trends in the global markets, which were characterised by a buoyant M&A sector and a skittish capital markets environment. Our continued ability to win mandates on the highest profile transactions in the jurisdiction has resulted in our maintenance of top tier rankings in leading legal directories. This Year in Review highlights these trends and other notable transactions completed by our Bermuda corporate practice in 2015.