Consultation Paper - Banks and Deposit Companies Code of Conduct (2021-09)

Summary

This is a Bermuda Monetary Authority consultation paper proposing a new Code of Conduct for banks and deposit companies, to be issued under a new section 8A of the Banks and Deposit Companies Act 1999. It sets out the draft Code (attached as Appendix I) and invites licensed institutions and other stakeholders to comment before the Code is finalised.

• Who it covers: All institutions licensed under section 14(5) of the Banks and Deposit Companies Act 1999, applied proportionately according to each institution's nature, scale and complexity.
• Core themes of the draft Code: Treating customers fairly and equitably, maintaining continuing regard for customer interests, ensuring clear and non-misleading communications, protecting customer assets from fraud or misuse, fair and expedient complaint handling, and ensuring customers understand their responsibilities.
• Detailed draft provisions: Compliance with AML/ATF laws, integrity and ethics standards, conflicts of interest management, handling of customer information, outsourcing oversight, record keeping, staffing and systems adequacy, suitability assessments, fee and terms disclosure, lending conduct, handling of closed/inactive accounts, vulnerable customer protections, statements and notices, advertising standards, licence disclosure, and cooperation with regulators.
• Process: The Authority will consider stakeholder feedback and make any necessary amendments before finalising the Code, expected to be issued once related amendments to the Act are completed.

Because this is a consultation paper, the draft Code's requirements are not yet legally binding; the only current action item is for stakeholders to submit comments by the stated deadline. The finalised Code, once issued, would set out the standards the Authority expects institutions to observe in their conduct of business.

Key obligations

• Licensed institutions and other stakeholders must submit comments on the draft Code of Conduct to conduct@bma.bm no later than close of business on 25 October 2021.

Applies to

banks, deposit companies, institutions licensed under section 14(5) of the Banks and Deposit Companies Act 1999

Deadlines

• 25 October 2021: Deadline for stakeholders to submit comments on the draft Banks and Deposit Companies Code of Conduct to conduct@bma.bm.