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 BMA consultation paper seeking industry feedback on proposed amendments to the Digital Asset Business Act 2018 Code of Practice and to new Digital Asset Business (Client Disclosure) Amendment Rules 2022. The proposals aim to formalise a conduct of business regime for licensed digital asset businesses, focused on client protection and fair dealing.

• Treat clients fairly and equitably
• Have continuing regard for clients' interests when conducting business
• Ensure client communications are fair, clear and not misleading
• Provide protection against loss of clients' assets due to internal fraud or misuse
• Handle complaints and errors fairly and expediently
• Ensure clients, especially retail clients, understand their responsibilities and can access resources to help them do so

No rules are yet in force; this is a call for stakeholder comments on the draft Code of Practice and Client Disclosure Rules before finalisation.

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 to conduct@bma.bm