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

Summary

This is a Bermuda Monetary Authority discussion paper exploring whether and how the Authority should expand its regulatory mandate to cover conduct of business and consumer protection across Bermuda's financial services sectors. It is not a binding rule but a consultation document seeking industry and consumer feedback on a possible future conduct of business framework.

• 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 Bermuda-specific model.
• Proposed scope: Initial focus would be on retail consumers of financial services, with wholesale consumer protection considered later as the regime matures.
• Six high-level principles: Sets out six proposed principles governing good conduct of business and consumer protection that the Authority may adopt as the basis of a future framework.
• Consultation mechanism: Invites stakeholders (licensed financial institutions, their clients, and industry groups) to respond via two surveys: Survey 1 for general discussion questions and Survey 2 aimed at consumers of financial services.

No rules, codes or legal requirements are being imposed by this paper itself; it is the first step in a process that could lead to future rule-making expanding the BMA's statutory mandate under the Bermuda Monetary Authority Act 1969.

Applies to

licensed financial institutions, insurers, banks, industry groups, consumers of financial services and products in Bermuda

Deadlines

• 30 September 2020: Deadline for stakeholders and consumers to submit survey responses (Survey 1 and Survey 2) and general comments on the discussion paper to conduct@bma.bm