Establishing an Investment Business in Bermuda in 2026
Bermuda remains a well-established international financial center for investment businesses, supported by political stability, a respected legal and regulatory framework, a sophisticated professional-services sector and strong international connectivity. These features make the jurisdiction particularly attractive to firms seeking a credible base from which to provide investment services to clients across multiple markets.
The Bermuda Monetary Authority (BMA) is responsible for the licensing, regulation and ongoing supervision of investment businesses operating in or from Bermuda. Through its risk-based supervisory approach, the BMA seeks to ensure that regulated firms maintain appropriate governance, financial resources, internal controls, compliance arrangements and operational standards.
In this article, the SALVUS Investment Firms Licensing team outlines the process of establishing an investment business in Bermuda in 2026, together with the jurisdiction’s principal advantages, licensing requirements and recent regulatory developments.
1. Why establish an Investment Firm in Bermuda?
2. Governing Legal Framework
3. Licensing Criteria
4. License Types and Regulated Investment Activities
5. How SALVUS can assist your Investment Business Application?
We regularly share bite-sized insights on LinkedIn such as those found in this article
1. Why establish an Investment Firm in Bermuda
Bermuda offers a well-developed financial-services infrastructure supported by a stable, transparent legal and political environment. Together with its efficient regulatory framework and internationally oriented business ecosystem, these features continue to make the jurisdiction attractive to investment firms in 2026.
Regulatory Stability: Bermuda’s regulatory framework is designed to align with international standards while supporting market integrity, sound governance and effective risk management. The BMA continues to develop its supervisory approach, including recently finalised requirements concerning operational resilience and outsourcing oversight, as part of its wider efforts to strengthen transparency and the resilience of regulated firms.
International Reputation: Bermuda continues to be recognized as a leading international financial center and remains one of the few jurisdictions granted Solvency II equivalence by the European Union. Its standing is further supported by ongoing legislative and regulatory developments intended to enhance the BMA’s supervisory framework, provide greater regulatory clarity and strengthen oversight across the investment, insurance and digital asset sectors.
Support for Innovation: Bermuda provides a regulatory environment capable of accommodating both established investment businesses and firms introducing innovative financial products, technology or operating models. The Test License framework allows eligible applicants to conduct specified investment activities for a defined period, subject to restrictions and conditions determined by the BMA.
Tax Environment: Bermuda’s Corporate Income Tax Act 2023 introduced a 15% corporate income tax for fiscal years beginning on or after 1 January 2025. The regime generally applies to Bermuda constituent entities of multinational enterprise groups whose consolidated annual revenue meets or exceeds EUR 750 million, subject to the Act’s detailed scope provisions, exclusions and adjustments. Investment businesses should assess their position based on their ownership and group structure rather than assuming that incorporation in Bermuda alone creates, or excludes, a corporate income tax liability.
Strategic Connectivity: Bermuda’s location in the North Atlantic facilitates interaction with markets in Europe and the Americas. Its communications infrastructure, professional-services network and internationally oriented business environment support firms conducting cross-border activities.
2. Governing Legal Framework
Bermuda’s legal system is based on English common-law principles, providing an established legal foundation for corporate and financial-services activities.
The principal legislation governing investment businesses is the Investment Business Act 2003, as amended. The Act determines which activities constitute investment business, when a license or registration is required, the criteria applicable to licensed and registered persons, the BMA’s supervisory and enforcement powers, and the continuing obligations of regulated investment businesses.
Investment businesses must also comply with applicable regulations, prudential rules, codes, statements of principles and guidance issued under the Investment Business Act, together with relevant AML/CTF, sanctions, beneficial-ownership, companies, data-protection and economic-substance requirements.
The Investment Business Amendment Act 2024, which became operative on 29 July 2024, strengthened the regulatory framework applicable to recognised investment exchanges and recognised clearing houses. The supporting 2024 rules and regulations apply specifically to recognised bodies and do not replace the existing prudential framework applicable to licensed and registered investment providers
Operational resilience and outsourcing are also important areas of the Bermuda regulatory framework. In September 2025, following public consultation, the BMA finalised its Operational Resilience and Outsourcing Code and accompanying Guidance Notes. The Code applies to investment businesses holding a Standard Licence and establishes requirements relating to operational resilience, outsourcing governance, the identification of important business services, impact tolerances, scenario testing, third-party due diligence, ongoing monitoring and board-approved self-assessments. The Code does not apply to investment businesses operating under a Test Licence. Relevant investment businesses must comply with the Code by 31 March 2028.
The BMA also published its 2026 fee schedule on 17 March 2026. Applicants should confirm the applicable application, licensing and annual supervisory fees under the latest schedule before submitting an application.
3. Licensing Criteria
A person intending to carry on investment business in or from Bermuda must generally obtain the appropriate authorization from the BMA unless the person qualifies for registration, an exemption or another statutory exclusion.
An applicant must demonstrate that its proposed structure and operations satisfy the BMA’s minimum licensing criteria, including:
- Controllers and officers who are fit and proper persons.
- Appropriately experienced and competent directors and senior management.
- Governance arrangements proportionate to the nature, scale and complexity of the business.
- Adequate capital, liquidity and other financial resources.
- Effective compliance, risk-management, internal-control, recordkeeping and regulatory-reporting arrangements.
- A prudent business model supported by suitable insurance where required.
- A transparent ownership and group structure that does not impede effective supervision.
- Appropriate physical presence and operational substance in Bermuda.
The BMA assesses each application based on the applicant’s complete business model. The application should therefore clearly explain the proposed services, client categories, markets, financial instruments, revenue model, governance structure, staffing arrangements, outsourcing relationships and projected financial position.
4. License Types and Regulated Investment Activities
The Standard License and Test License are license types. The activities listed under the Investment Business Act are regulated investment activities that may be included within the scope of the license.
Standard License
A Standard License permits the holder to conduct one or more approved investment activities on an ongoing basis, subject to any restrictions or conditions imposed by the BMA. It is generally suitable for applicants with a fully developed business model, operational framework, governance structure and compliance arrangements.
Test License
A Test License permits an eligible firm to conduct specified investment activities for a defined period and subject to limitations or conditions established by the BMA. It may be appropriate where an innovative product, technology or delivery model requires testing within a controlled regulatory environment.
Regulated Investment Activities
| Regulated Activity | Description |
|---|---|
| Dealing in Investments | Buying, selling, subscribing for, or underwriting investments either as principal or agent. |
| Arranging Deals in Investments | Making or offering, or agreeing to make arrangements with a view to: i) another person buying, selling, subscribing for or underwriting a particular investment, being arrangements which bring about or would bring about the transaction in question; or ii) a person who participates in the arrangements buying, selling, subscribing for or underwriting investments. |
| Managing Investments | Managing or offering to manage assets belonging to another person, which include investments. |
| Investment Advice | Giving or offering, to give to clients or potential clients, advice on purchasing, selling, subscribing for or underwriting an investment, or exercising any right conferred by an investment to acquire, dispose of, underwrite or convert an investment. |
| Safeguarding and Administrating Investments | The safeguarding and administration (or arrangement for safeguarding and administration) of assets belonging to another party, where: i) the assets include investments as specified in paragraphs 1 to 8 of Part 1 of the First Schedule to the IBA; or ii) the arrangements for safeguarding and administering these assets are structured in a way that the assets may include investments, and the arrangements have been presented or promoted as specifically designed to safeguard and manage such investments. |
| Investment Promotion | Promoting investments to members of the public, including: i) Advertising or agreeing to advertise material or information which promotes an investment; ii) Issuing or agreeing to issue a prospectus, application for or proposal form in relation to an investment; and iii) Distributing, circulating or agreeing to distribute, circulate or make available, material relating to an investment. |
5. How SALVUS can assist your Investment Business Application?
At SALVUS, our Investment Firms Licensing team, is dedicated to delivering a fully customized approach to regulatory licensing, designed to align precisely with the distinct characteristics and strategic objectives of each client. We provide end-to-end regulatory support for investment-business applications in Bermuda, covering business-model assessment, license scoping, ownership and governance review, regulatory business plans, financial projections, compliance frameworks, application documentation and operational-readiness requirements. Our team also reviews outsourcing, technology, custody and third-party arrangements, coordinates responses to regulatory queries and manages communications with the BMA throughout the application process.
Bermuda remains an attractive jurisdiction for investment businesses in 2026 due to its established legal system, regulatory credibility and internationally focused financial-services sector. However, applicants must demonstrate appropriate governance, financial resources, operational substance, competent management and effective compliance arrangements. SALVUS supports clients across the full licensing lifecycle, from initial assessment and application preparation to regulator engagement and implementation.
If you’re considering establishing an Investment Business in Bermuda, our dedicated Investment Firms Licensing team is here to guide you every step of the way. For expert advice and personalized support, reach out to us at info@salvusfunds.com – we’re ready to answer your questions and help turn your plans into a compliant and successful reality.
#StayAhead
The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.