Bermuda has been approached by the UK government to begin discussions leading to the offshore jurisdiction taking a more active part in the ...

Bermuda has been approached by the UK government to begin discussions leading to the offshore jurisdiction taking a more active part in the application of the EU Savings Tax Directive, Bermuda's minister of finance Paula Cox has told the island's parliament.

Although the island was inexplicably left out of the scope of the directive, the only British overseas territory not to have been included, it has become apparent that the jurisdiction is already being indirectly affected by the new legislation.

"The upshot is that even though Bermuda is outside of the directive, the manner in which some countries have applied their home rules which give effect to the directive has impacted negatively on funds domiciled in Bermuda but whose paying agents are located in a country subject to the directive, for example, Bermuda domiciled funds whose paying agents are located in Switzerland or Ireland,” according to Ms Cox.

Ms Cox said that the inconsistencies in the application of home rules was causing a degree of uncertainty for the fund sector in Bermuda, citing the Swiss position as "most problematic".