Bermuda Monetary Authority Amendment (No. 3) Act 2018

Summary

This Act amends the Bermuda Monetary Authority Act 1969 by replacing the Fourth Schedule that sets the fees payable under Bermuda's core financial services legislation (Insurance Act 1978, Banks and Deposit Companies Act 1999, Trusts (Regulation of Trust Business) Act 2001, Investment Business Act 2003, Investment Funds Act 2006, Credit Unions Act 2010, Corporate Service Provider Business Act 2012, Money Service Business Act 2016, and digital asset business fees). It also replaces the Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 and makes minor procedural amendments to the Investment Funds Act 2006.

• New fee schedules: Sets out three successive fee tables (Parts A, B and C) covering calendar years 2019, 2020 and 2021 respectively, with fees rising each year for licensing, registration, application and annual supervisory fees across banks, insurers, insurance managers/brokers/agents/salesmen, credit unions, corporate service providers, money service businesses and digital asset (virtual asset) businesses.
• Bank and deposit company fees: Replaces the Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 with tiered annual fees for banks based on consolidated gross assets, and a flat annual fee for deposit companies, again phased across 2019, 2020 and 2021.
• Investment Funds Act change: Amends section 15 to clarify that the Authority may act on the application of a fund operator, and inserts a related new paragraph in section 17(1) referencing applications made under section 15.
• Commencement: The Act came into operation on 1 January 2019, subject to specified provisions relating to the phased fee schedules.

In practice, the document is primarily a fee-setting instrument: it does not create new substantive regulatory duties beyond payment of the revised licensing and annual fees, and the small procedural clarification to the Investment Funds Act application process.

Key obligations

• Banks and deposit companies must pay the annual fees prescribed in the Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 by 31 January of the relevant year (2019, 2020, 2021).
• Licensees under the Banks and Deposit Companies Act 1999, Corporate Service Provider Business Act 2012, Credit Unions Act 2010 and Money Service Business Act 2016 must pay their prescribed annual fees on or before 31 March of the relevant year (2019 onward as scheduled).
• Insurers and other Insurance Act 1978 registrants must pay the applicable registration, application and annual fees set out in the Fourth Schedule for the relevant fee year.
• Digital asset business licensees must pay the annual fee calculated per the formula in Part C (2021) of the Fourth Schedule, due on or before 31 March 2021.
• Fund operators applying under section 15 of the Investment Funds Act 2006 must make such applications for the Authority to act, per the amended section 15 and 17(1).

Applies to

banks, deposit companies, insurers, insurance managers, insurance brokers and agents, insurance salesmen, trust companies, investment business licensees, investment funds and fund operators, credit unions, corporate service providers, money service businesses, digital asset (virtual asset) business licensees

Deadlines

• 1 January 2019: Act (and Part A fee schedules) comes into operation.
• 31 March 2019: Annual fees due for banks (annual fee under BDCA), corporate service providers, credit unions and money service businesses per Part A of the Fourth Schedule.
• 31 January 2019: Annual fees due for banks and deposit companies under Part A of the Second Schedule (Banks and Deposit Companies (Fees) Act 1975).
• 1 January 2020 to 31 December 2020: Period of operation of Part B fee schedules (Fourth Schedule and Second Schedule).
• 31 January 2020: Annual fees due for banks and deposit companies under Part B of the Second Schedule.
• 1 January 2021: Part C fee schedules (Fourth Schedule and Second Schedule) come into operation.
• 31 January 2021: Annual fees due for banks and deposit companies under Part C of the Second Schedule.
• 31 March 2021: Annual fees due under Part C of the Fourth Schedule, including digital asset business annual fees.

Related documents

• This document amends Bermuda Monetary Authority Act 1969
• This document amends Banks and Deposit Companies (Fees) Act 1975
• This document amends Investment Funds Act 2006