Financial services firms will get a competitive lead from legal changes, MPs have been told.

The changes tabled by Curtis Dickinson, the finance minister, amended 2019 legislation to clarify that an incorporated segregated account qualified as a company at the time of registration.

ISACs had to cancel their prior registration as such to qualify as companies.

The legislation also streamlined the process for registration of a digital asset business as an ISAC.

Cole Simons, the Leader of the Opposition, said he supported the Incorporated Segregated Accounts Companies Amendment Act 2021 because it was “driven by the industry – it will help Bermuda in its competitive edge in regards to the financial services industry”.

Bermuda’s ISAC business regime is supervised by the Registrar of Companies and the Bermuda Monetary Authority.

Legislators also approved related legislation, the Segregated Accounts Companies Amendment Act 2021.

Mr Dickinson told the House of Assembly last Friday the amendments were necessary to deal with changing legislation covering business activity “without imposing undue regulatory burdens”.

The legal changes were sparked by recommendations from the Caribbean Financial Action Task Force last year on vetting and verifying account holders.