Consultation Paper - Amendments to BMA Act 1969 (2021-09-17)

Summary

This is a Bermuda Monetary Authority consultation paper proposing amendments to the Bermuda Monetary Authority Act 1969 and its Fourth Schedule, following completion of the 2019-2021 phased fee restructuring. It sets out proposed legislative changes (via a draft Amendment No. 2 Act 2021 in Annex I) affecting Innovation Hub extension periods and fees, and fee corrections under the Corporate Service Provider Business Act 2012, Insurance Act 1978 and Investment Funds Act 2006.

• Innovation Hub extensions: Extends the extension period under sections 20G and 20H from three months to up to twelve months, with a corresponding change to the extension fee (proposed at $1,500) and application fee (proposed at $3,000).
• Corporate Service Provider fees: Corrects annual fees for 2021 for the two largest client-base categories under the Corporate Service Provider Business Act 2012, which had not been properly carried forward in the phased fee structure.
• Investment Funds Act fees: Adds previously omitted late filing fees for Overseas Funds and Closed-Ended Funds and inserts a new section 17(8) imposing a $50 per month late fee for certifications or statements not filed within the required period.
• Insurance Act clarifications: Clarifies that only one extension fee is payable where an insurer seeks an extension covering more than one filing deadline, and makes minor corrections to other insurance fee anomalies, including a new $500 fee for cancellation of registration applications.

The Authority intends to seek Legislature approval so these changes take effect on 31 December 2021, and it invited stakeholder comments on the proposals and the illustrative draft legislation in Annex I by close of business on 11 October 2021.

Key obligations

• Stakeholders wishing to comment on the proposed amendments must submit feedback to policy@bma.bm no later than close of business on 11 October 2021.
• Under the proposed new section 17(8) of the Investment Funds Act 2006, fund operators who fail to submit required certifications or statements on time will be liable to pay a late fee of $50 per month (or part month) until filing is made.
• Insurers seeking an extension to more than one filing deadline will only need to pay one extension fee, per the clarified Insurance Act fee Note.

Applies to

insurers, innovative insurers, insurance brokers, insurance agents, insurance marketplace providers, innovative intermediaries, corporate service providers, investment fund operators, Overseas Funds, Closed-Ended Funds, Innovation Hub applicants/participants

Deadlines

• 11 October 2021: Deadline for industry and stakeholders to submit comments on the consultation paper and Annex I draft amendments to policy@bma.bm.
• 31 December 2021: Intended effective/commencement date for the proposed Bermuda Monetary Authority Amendment (No. 2) Act 2021 and related fee changes, pending Legislature approval.

Related documents

• This document amends Bermuda Monetary Authority Act 1969
• This document amends Investment Funds Act 2006