Bermuda Banking Code of Ethical Conduct

Summary

This is a voluntary Code of Ethical Conduct issued by the Bermuda Banking Association, effective 29 February 2020, setting standards for how banks and their staff should treat customers. It complements the Bermuda Banks and Deposit Companies Act 1999 but is not itself a binding regulatory rule; it applies only to banks and banking staff that subscribe to the Code.

• Integrity and fairness: Subscribing banks commit to acting honestly, treating dormant account funds as customer property indefinitely, and giving at least 30 days notice before closing an account except in abnormal circumstances such as abusive behaviour or misuse of a product.
• Fair dealing with customers: Banks commit to explaining product features, disclosing due diligence requirements, assessing credit card affordability, and working with customers who disclose financial difficulty.
• Complaints handling: Banks commit to explaining complaints procedures, acknowledging and responding to complaints in a timely, fair and impartial manner, and telling customers what further steps are available if unhappy with the outcome.
• Legal and regulatory transparency: Banks commit to disclosing which regulator supervises them, updating customer contact information promptly, and ensuring advertisements state who regulates them and what activities they are licensed to conduct.
• Clear communication: Banks commit to providing information on interest rates, fees, statements, branch closures, foreign exchange charges and terms and conditions in plain, clear language.
• Fraud prevention and security: Banks commit to providing fraud-prevention guidance, refunding unauthorised transactions confirmed as fraud (unless the customer acted fraudulently or without reasonable care), and correcting bank errors with full refunds subject to statutory limitation periods.
• Advertising standards: Banks commit to ensuring advertising and promotional material is clear, fair, not misleading, and does not tie insurance purchases to lending approval.

Because the Code is voluntary and industry-issued rather than a statutory instrument, it creates ethical commitments and customer-service expectations for participating banks rather than directly enforceable legal obligations. There is no stated transition period, filing requirement, or regulator enforcement mechanism in the text.

Key obligations

• Provide at least 30 calendar days notice before closing a customer account except in abnormal circumstances
• Assess a customer's ability to repay before granting or increasing a credit card limit
• Provide customers with clear terms and conditions, fee schedules and interest rate information on request or when they become a customer
• Acknowledge and respond to customer complaints in a timely, fair and impartial manner and inform the customer of the next steps if unresolved
• Refund unauthorised or bank-error transactions (including related interest and charges) unless the customer acted fraudulently or without reasonable care
• Disclose which regulator supervises the bank and its licensed activities in relevant advertisements
• Provide advance notice within a reasonable period before closing or relocating a branch, including information on continuing service
• Ensure advertising and promotional material is clear, fair, reasonable and not misleading

Applies to

banks, banking staff and representatives

Deadlines

• 29 February 2020: Effective date of the Code
• at least 30 calendar days notice: Minimum notice period before closing a customer account under normal circumstances