Consultation Paper - Proposed BMA Act 1969 General Powers and Fee-Related Changes and BMA Amendment Bill 2024 - Illustrative Draft (2024-07-10)

Summary

This is a BMA consultation paper seeking stakeholder feedback on proposed amendments to the Bermuda Monetary Authority Act 1969 and an accompanying illustrative draft BMA Amendment Bill 2024. The proposals clarify the BMA's investment and reserve management powers, adjust its Innovation Hub fee powers, and revise fee schedules across several regulated sectors. Nothing in the paper is yet in force; it is a draft open for comment, with the body of the Act proposed to take effect on assent and Fourth/Fifth Schedule fee changes proposed for 1 January 2025.

• BMA reserves and investments: Clarifies that the BMA will not invest in entities it regulates, and that AML/ATF penalty proceeds must be excluded before calculating the BMA's net profit.
• Innovation Hub: Gives the BMA express power to reduce or waive Innovation Hub fees on request in certain circumstances, and proposes cutting application and extension fees to $1,000.
• Insurance sector (Insurance Act 1978): Clarifies fee-tier wording for Class 3A, 3B and 4 insurers and designated run-off insurers (fees unchanged, but higher tier fee applies where an insurer falls into more than one tier); adds administrative references to Class IIGB and IILT insurers; clarifies supplementary fee notes for non-resident insurance undertakings.
• Investment Business Act 2003: Introduces a new $2,840 application fee and $10,000 annual fee for Recognised Bodies (investment exchanges/clearing houses) seeking a recognition certificate; increases application fees to $25,000 and annual fees to $100,000 for Investment Providers offering OTC leveraged products (e.g. CFDs) to retail clients.
• Investment Funds Act 2006: Corrects the Fourth Schedule transaction fee item to remove the repealed section 6 notification reference and add section 8A(8) director/service-provider change notifications for registered Professional Class B funds (fee amount unchanged).
• AML/ATF fees (Proceeds of Crime Act 2008): Revises fees for Non-Licensed Persons to a $150 registration fee and $1,000 annual fee to better reflect supervision costs.

Stakeholders were invited to comment on the proposals by writing to policy@bma.bm no later than 16 August 2024. The BMA indicated it may issue further guidance on fees, taking stakeholder feedback into account, timed with implementation of the 2025 fees.

Key obligations

• Stakeholders wishing to comment on the proposals must submit written comments to policy@bma.bm no later than 16 August 2024 (consultation response deadline, not a binding compliance obligation).

Applies to

Class 3A, 3B and 4 insurers, designated insurers registered to carry on run-off general business, Class IIGB and IILT insurers, non-resident insurance undertakings, Investment Providers licensed under the Investment Business Act 2003, including those offering OTC leveraged products to retail clients, Recognised Bodies (investment exchanges and clearing houses), registered Professional Class B funds under the Investment Funds Act 2006, Non-Licensed Persons under the Proceeds of Crime (AML/ATF Supervision and Enforcement) Act 2008, Innovation Hub applicants

Deadlines

• 16 August 2024: Deadline for stakeholders to submit written comments on the consultation proposals to policy@bma.bm.
• on Assent: Proposed commencement of Sections 1, 2, 3 and 4 of the BMA Amendment Bill 2024 (general powers changes).
• 1 January 2025: Proposed commencement of Sections 5 and 6 and Schedules 1 and 2 of the BMA Amendment Bill 2024 (Fourth and Fifth Schedule fee changes).

Related documents

• This document amends Bermuda Monetary Authority Act 1969