Stakeholder Letter: Banks and Deposit Companies Act 1999 - Code of Conduct (2021-12-07)

Summary

This is a stakeholder letter from the Bermuda Monetary Authority responding to industry feedback on its Consultation Paper proposing a new Code of Conduct under the Banks and Deposit Companies Act 1999. It clarifies several provisions of the draft Code and sets out next steps before the Code is finalised and issued.

• Handling of customer information: Confirms Institutions may choose how to remind staff of privacy obligations (signed acknowledgement or documented training) but must be able to evidence completion on request.
• Recordkeeping: Paragraph 23 will be reworded so records need only be kept in Bermuda where law requires it; otherwise records may be kept elsewhere provided they are accessible from Bermuda in a timely manner.
• Vulnerable customers: Confirms each Institution may define and identify vulnerable customers using its own approach, with expectations focused on having processes and facilities to assist customers who self identify as vulnerable rather than proactive identification of all cases.
• Next steps: The Authority intends to finalise and issue the Code once amendments to the Act permitting the Authority to issue it are made; a transition period will be announced at that time to allow Institutions to come into compliance.

No obligations are imposed by this letter itself since the Code of Conduct has not yet been formally issued; it is a status update and clarification pending finalisation and legislative amendment.

Applies to

banks, deposit companies, institutions licensed under the Banks and Deposit Companies Act 1999

Deadlines

• shortly: Amendments to the Act to allow the Authority to issue the Code are expected to be made shortly, at which time the Code will be issued
• to be announced: A suitable transition period will be recommended and communicated to Institutions once the Code is issued, to allow them to come into compliance