An energetic collaboration of the Government of Bermuda, the Bermuda Monetary Authority (BMA) and the private sector in Bermuda has yielded exciting results – the passage of the Bermuda Investment Funds Amendment Act 2013 (Act). The Act creates a new asset class known as the “Class A Exempt Fund,” which is exempt from authorisation and supervision. The exempted product is not new to Bermuda. However, the fact that it can be launched immediately upon filing of an exemption notification with the BMA, with no additional regulatory approval, makes it a user friendly and cost efficient alternative to competing products in the marketplace. Once the exemption notification is filed, the exemption automatically takes effect. In a guest article, Sarah Demerling, a partner at Appleby in Bermuda, describes the new classes of exempt funds created by the Act, the requirements that must be fulfilled to rely on the exemptions and the opportunities for hedge fund managers created by the new exemptions.