Consultation Paper: The Appeal Tribunal Framework (2021-06-02)

Summary

This is a joint Ministry of Finance and Bermuda Monetary Authority consultation paper proposing changes to the Appeal Tribunal framework used by financial institutions to challenge BMA decisions. It describes the current tribunal structure and process, identifies operational problems found in a 2019 review, and proposes shifting appeals oversight from the Ministry of Finance to the Courts.

• Problems identified: Limited pool of eligible tribunal members, conflict of interest disqualifications causing delays, unclear standards for required financial services experience, stretched legal resources, and difficulty finding suitable confidential hearing venues.
• Proposed changes: Withdraw the Minister of Finance and industry participants from operational aspects of the appeals regime; establish a new framework for appeals under the Courts instead of ministerial tribunals.
• Regulations affected: New Appeal Tribunal Regulations would be established under each Regulatory Act where relevant, with notice periods and decision making powers largely unchanged apart from references to the Minister of Finance and court filing requirements.
• Other proposed adjustments: Further changes to costs, procedures and evidence rules; the Authority proposes it should not bear costs unless it acted improperly; anonymity for the appealing entity is proposed to preserve confidentiality.
• Sectors covered by existing tribunal regulations: Banking, corporate service provider business, credit unions, investment business, insurance, and trust business.
• Sectors needing new tribunal regulations: Digital asset business, digital asset issuance, fund administration provider business, and money service business.

This is a consultation paper only, not a binding rule change. It invites feedback from the financial services sector and other interested parties on the proposed transition from Ministry of Finance oversight to Court oversight of appeals.

Key obligations

• Interested parties wishing to comment must submit their views to the Ministry of Finance (pburrows@gov.bm) or the Bermuda Monetary Authority (policy@bma.bm) no later than 2 July 2021.

Applies to

financial institutions regulated by the Bermuda Monetary Authority, banks and deposit companies, corporate service providers, credit unions, investment business licensees, insurers, trust businesses, digital asset businesses, digital asset issuers, fund administration providers, money service businesses

Deadlines

• 2nd July, 2021: Deadline for submitting comments on the consultation paper's proposals for reforming the Appeal Tribunal framework.