The Bermuda outpost of Harneys, which officially opened in September 2015, has kicked off 2016 by welcoming a Cayman Islands partner of the firm with expertise in fund restructurings.
Jayson Wood, who practiced law at Harneys in the Cayman Islands before relocating to Bermuda, advises clients, often in the hedge fund space, on shareholder disputes, reorganizations, liquidations, and litigation over fraud allegations. Wood’s move to Bermuda, where he is a registered associate, is emblematic of the jurisdiction’s growing importance in areas beyond its traditionally strong insurance and re-insurance market.
In a discussion with IFLR1000, Wood reflected on changes that have swept Bermuda’s financial and legal markets. He described Bermuda as having historically enjoyed a reputation both as an insurance jurisdiction, and a market with a legal fraternity that was basically a closed shop. As the Hong Kong office of Harneys began to grow rapidly, Wood said, more and more Bermuda work was on offer, typically involving corporate restructurings.
“On scratching the surface, we learned that about 30% of Hong Kong listed companies are domiciled in Bermuda, and that the Bermuda statutory framework is under continuing review and amendment to make the jurisdiction more attractive for new hedge funds,” he said.
Wood said that having arrived in Bermuda, he could see a big effort underway in the legal and corporate services industries to draw more hedge fund work.
“We’re seeing an acknowledgment, not only at the local business level but also at the government level, that insurance work alone doesn’t cut it any more – there needs to be more strings to the bow. The government here has been very proactive in trying to find new income streams for the island, much in the same way that Cayman has been updating its legislation to garner more insurance work. In the offshore world, governments aren’t always so supportive,” Wood continued.
“It was the hedge fund push which piqued my interest to relocate to Bermuda. Cayman is the funds capital and in my six years there, I specialised in fund litigation and liquidations as well as corporate restructurings. I was keen to be involved in a growth industry which fitted within my skill sets and to be part of a new initiative,” he added.