Consultation Paper - Regulation of Bank Fees (2026-08-07)

Summary

This is a Bermuda Monetary Authority consultation paper seeking feedback on proposed regulations to govern fees charged by banks and deposit companies to certain customers. The proposed Banks and Deposit Companies Fees Regulations 2026 would be issued by the Minister of Finance under the BDCA and would work alongside the existing Banks and Deposit Companies Code of Conduct. Comments are invited from stakeholders; no rules are yet in force.

• Who is protected: Individuals, individuals trading as partnerships or sole proprietorships, registered charities, and small and medium local businesses (annual revenue under BMD 5,000,000); corporate clients other than small/medium businesses are excluded.
• Services covered: Current accounts, cheque/draft handling, savings and deposit accounts, overdraft and loan facilities, Bermuda dollar mortgage loans, foreign exchange services, and credit/debit card facilities.
• Excluded matters: Interest rates, exchange rates, fees under other licences (e.g. investment or trust services), foreign currency purchase tax, withholding taxes, and third-party fees.
• Annual fee disclosure: Institutions would submit an annual schedule of all fees for covered products and services as at 31 December, filed within one month, with the Minister completing a reasonableness review by 31 March each year.
• Specified fees regime: Over-the-limit fees and account maintenance fees are designated as initial 'specified fees'; institutions would need the Minister's written notice of no objection before introducing or increasing these fees, and existing specified fees would not be grandfathered.
• No-objection process: Institutions must give written notice with prescribed information (commercial rationale, affected customers, alternatives, expected revenue/costs, communication plan) before changing a specified fee; the Minister has 45 business days to respond, extendable if further information is requested, with an additional 14 business days after any representations following a proposed objection.
• Reimbursement duty: Where a specified fee is changed without adequate customer disclosure or without required notice to the Minister, the institution must refund incorrectly charged fees and consequential charges (e.g. OTL fees) no later than the end of the next billing cycle.
• Enforcement: Breaches would be investigated under the BMA's existing enforcement powers (BDCA section 42A(b)), with penalties for contravention proposed not to exceed $10,000.

The paper is a consultation only; institutions are not yet bound by these proposals but should review them and submit comments, as the resulting Regulations would create ongoing disclosure, approval and refund obligations once finalised.

Key obligations

• Once in force, institutions would need to submit an annual schedule of all fees for covered products and services, reflecting fees as at 31 December, filed within one month of that date
• Institutions would need the Minister's written notice of no objection before introducing or increasing a specified fee (initially OTL fees and account maintenance fees), by serving written notice with prescribed supporting information
• Institutions must halt any planned specified fee increase or introduction if the Minister issues a formal objection
• Institutions that alter a specified fee without adequate customer disclosure or without notifying the Minister must refund incorrectly charged fees and related consequential fees no later than the end of the next billing cycle
• Interested parties are invited to submit comments on the consultation proposals to policy@bma.bm by close of business on 22 September 2026

Applies to

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

Deadlines

• 22 September 2026: Deadline for stakeholders to submit comments on the consultation proposals to policy@bma.bm
• within one month of 31 December each year: Proposed deadline for institutions to file their annual fee schedule disclosure
• before 31 March of each year: Proposed deadline for the Minister to complete the annual reasonableness review of fee schedules
• 45 business days: Proposed period for the Minister to respond with a notice of no objection (or objection) after receiving notice of a specified fee change
• 14 business days: Additional proposed period for the Minister to decide after an institution submits representations following a proposed objection
• end of the next applicable billing cycle: Proposed deadline for reimbursing customers for incorrectly charged or inadequately disclosed specified fees