Discussion Paper - A Conduct of Business Regulatory Framework for Bermuda (2020-08-19)

Summary

This is a discussion paper issued by the Bermuda Monetary Authority (BMA) exploring whether and how it should expand its regulatory mandate to cover conduct of business and consumer protection across the financial services sectors it licenses. It is not a binding rule or code; it sets out international context, options considered, and a proposed roadmap, and invites industry and consumer feedback via two surveys.

• Purpose: Reviews global approaches to conduct of business and consumer protection regulation (IOSCO, BCBS, IAIS, G20/OECD principles, UK, New Zealand, Ireland) to inform a possible Bermuda framework.
• Proposed approach: BMA intends to act as an integrated prudential and conduct regulator (similar to the Central Bank of Ireland model), initially focusing on firms serving retail consumers before extending attention to wholesale consumers.
• Principles: Sets out six proposed high-level principles intended to secure good conduct of business and consumer protection outcomes for financial services firms it regulates.
• Consultation mechanism: Invites stakeholders (licensed financial institutions, their clients, and industry groups) to respond to two surveys: Survey 1 (discussion questions for stakeholders) and Survey 2 (a consumer survey), plus general comments by email.

No new legal requirements are created by this paper itself; it is a preliminary step intended to gather feedback that will shape a future conduct of business regime. Any actual obligations would only arise from subsequent BMA rules, codes, or legislative amendments following this consultation.

Applies to

financial services firms licensed or registered by the Bermuda Monetary Authority, insurers and insurance intermediaries, banks, investment and securities firms, clients and potential clients (consumers) of BMA-regulated firms

Deadlines

• 30 September 2020: Deadline for stakeholders to submit survey responses (Survey 1 and Survey 2) digitally, or general comments via email to conduct@bma.bm.