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It was the UK Government that approved that Bermudians could have, on application, a UK passport and be treated as full UK nationals in every other way, but that Britons in Bermuda who are not also Bermudian would not have reciprocal rights.
For much of the last century it was given to a senior British UK military officer on retirement, or a politician who had held senior office.
See Bermuda History with the Old and New Worlds since 1500.
Only in external affairs and defence does the UK have a controlling interest.It is based on old British military Field Marshals, with a white pith helmet with dyed scarlet swan's feathers plumage and Mameluke sword by Wilkinson Sword.