Notice - Consultation Paper - Conduct of Business Regulatory Regime: Digital Asset Business Act 2018: Code of Practice and Client Disclosure Amendment Rules 2022 (2022-10-20)

Summary

This is a consultation notice from the Bermuda Monetary Authority (BMA) inviting industry feedback on proposed amendments to the Digital Asset Business Act 2018 Code of Practice and the Digital Asset Business (Client Disclosure) Amendment Rules 2022. The proposals aim to establish a conduct of business regime for digital asset businesses licensed under the Digital Asset Business Act 2018, focused on client protection and fair dealing.

• Fair treatment: Digital asset businesses would be required to treat clients fairly and equitably
• Ongoing duty of care: Have continuing regard for clients' interests in the conduct of their business
• Clear communications: Ensure communications with clients are fair, clear and not misleading
• Asset protection: Provide protection against loss of clients' assets due to internal fraud or misuse
• Complaints handling: Handle complaints and errors in a manner that is fair and expedient
• Client awareness: Ensure clients, especially retail clients, understand their responsibilities and can access resources to help them do so

No rules have yet been finalised; this is a consultation stage document seeking stakeholder comments before the amendments are adopted.

Key obligations

• Stakeholders wishing to comment must send their views to conduct@bma.bm no later than close of business on 19 December 2022

Applies to

digital asset businesses licensed under the Digital Asset Business Act 2018

Deadlines

• 19 December 2022: Deadline for stakeholders to submit comments on the consultation paper and draft Code of Practice and Client Disclosure Rules amendments