Fund Administration Provider Business Act 2019

Summary

This Act establishes a standalone licensing and supervisory regime for fund administration provider business in Bermuda, administered by the Bermuda Monetary Authority (BMA). It replaces the fund administrator licensing provisions previously contained in the Investment Funds Act 2006, which are repealed and consequentially amended by this Act.

• Licensing requirement: No person may carry on or hold themselves out as carrying on fund administration provider business in or from Bermuda without a licence from the BMA; contravention is a criminal offence.
• Application requirements: Applicants must submit a business plan, management arrangements, AML/ATF policies and procedures, any other required information, and an application fee; the BMA will only grant a licence if satisfied the Schedule 1 minimum criteria are met.
• Licence conditions: Licensees may not hold financial instruments or client monies, must display their licence at their principal Bermuda place of business, and may be subject to scope limitations set by the Authority.
• Ongoing financial and governance duties: Licensees must prepare annual financial statements and accounts, appoint an approved auditor (who must report certain matters to the Authority), maintain corporate governance arrangements appropriate to the nature and scale of their business, and be directed by at least two persons with appropriate non-executive oversight.
• Notification obligations: Licensees and controllers must notify the Authority of new or increased shareholder control and of changes of controller or officer, and must file a statement of compliance.
• Codes of practice: Licensed undertakings must have regard to any codes of practice issued by the Authority; non-compliance is taken into account in assessing prudent conduct of business.
• Supervisory and enforcement powers: The Authority has powers to restrict or revoke licences, issue civil penalties, public censures and prohibition orders, conduct investigations, require production of documents, and enter premises to obtain information.
• Fees: Licensees must pay a fee on grant of licence, an annual fee on or before 31 March each year following the year of grant, and a fee to extend the filing date for annual financial statements.

The Act also restricts use of the term 'Fund Administration Provider Business' by unlicensed persons and includes provisions on confidentiality of information obtained by the Authority. It received Royal Assent on 05 August 2019 and became operative on 31 December 2019.

Key obligations

• A person must hold a fund administration provider business licence before carrying on, or holding out as carrying on, such business in or from Bermuda.
• Applicants for a licence must submit a business plan, management arrangements, AML/ATF policies and procedures, and an application fee, and satisfy the Schedule 1 minimum criteria.
• Licensees must not hold financial instruments or client monies as a condition of their licence.
• Licensees must display their licence at their principal place of business in Bermuda at all times.
• Licensees must pay the prescribed annual fee on or before 31 March each year after the year the licence was granted.
• Licensees must prepare annual financial statements and accounts and appoint an auditor approved by the Authority.
• Auditors must communicate certain matters to the Authority as required under the Act.
• Licensees and controllers must notify the Authority of new or increased shareholder control, and of any change of controller or officer.
• Licensees must file a statement of compliance with the Authority.
• Licensees must have regard to any codes of practice issued by the Authority in conducting their business.
• Licensed undertakings must implement corporate governance policies and be directed by at least two persons, with non-executive director oversight as appropriate to the nature, size, complexity and risk profile of the business.
• Unlicensed persons must not use the words 'Fund Administration Provider Business' in connection with their activities.

Applies to

fund administration provider businesses, licensed undertakings, investment funds, controllers, officers, auditors

Deadlines

• on or before 31 March in every year after the year in which the licence was granted: Annual licensing fee payment due to the Authority.
• 05 August 2019: Assent date of the Act.
• 31 December 2019: Operative (commencement) date of the Act.

Related documents

• This document amends Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008
• This document amends Bermuda Monetary Authority Act 1969
• This document amends Investment Funds Act 2006
• Operational Resilience and Outsourcing Code (September 2025) is made under this document
• Operational Cyber Risk Management Code of Conduct (September 2022 Revised) is made under this document
• Operational Cyber Risk Management Code of Conduct - Corporate Service Providers, Trust Companies, Money Service Businesses, Investment Businesses and Fund Administration Providers (2022-03-15) is made under this document
• Fund Administration Provider Business Code of Practice October 2020 is made under this document
• Operational Resilience and Outsourcing Code (September 2025) (Tracked Changes) is made under this document
• Fund Administration Provider Business Statement of Principles (October 2020) is made under this document