Notice - Corporate Service Provider Appeal Tribunal Regulations 2013 (2013-06-13)

Summary

This is a Bermuda Monetary Authority (BMA) consultation notice, dated 13 June 2013, seeking comments on a draft set of Corporate Service Provider Appeal Tribunal Regulations 2013. The draft Regulations would implement the appeal process created under section 36 of the Corporate Service Providers Business Act 2012, setting out how an appeal tribunal would handle appeals against BMA decisions affecting corporate service providers and related persons.

• Purpose: Prescribes the procedure for a Tribunal to hear appeals against BMA decisions to restrict, revoke, refuse or vary a corporate service provider licence, impose civil penalties, publish statements, serve notices of objection, or issue/refuse prohibition orders.
• Modelled on precedent: The proposed regime mirrors appeal tribunal regulations already in place under the Trusts (Regulation of Trust Business) Act 2001, Investment Business Act 2003, Banks and Deposit Companies Act 1999, and Credit Unions Act 2010.
• Filing an appeal: Sets deadlines (10 or 28 days, depending on the type of decision) for an aggrieved undertaking, person or individual to file a notice of appeal with the Tribunal Secretary at the Ministry of Finance.
• Procedural steps: Covers grounds of appeal, supplementary (confidential) grounds, the Authority's disclosure obligations and response, preliminary hearings, interim relief, amendment of grounds, evidence, hearing procedure, costs, consolidation of appeals, and service of documents.
• Legislative status: The Regulations are subject to negative resolution procedure and still require review and sign-off by the Attorney General's Chambers before being made.

As a consultation notice, the document itself does not yet impose binding requirements; it invites stakeholder comment on the draft before the Regulations are finalised and made.

Key obligations

• Interested parties wishing to comment on the draft Regulations must send comments to policy@bma.bm by 13 July 2013.
• Once in force, an undertaking appealing a licence restriction, revocation or refusal decision under section 36(1)(a)-(c) of the Act would need to file a notice of appeal with the Tribunal Secretary, Ministry of Finance, within 10 days of the Authority's decision.
• Once in force, appeals relating to civil penalties, published statements, restrictions/revocations affecting persons, removal of officers/directors, notices of objection, or prohibition orders (section 36(1)(d)-(e) and 36(2)-(5)) would need to be filed within 28 days of the relevant Authority decision.
• Under the draft Regulations, an appellant filing a notice of appeal would be required to serve a copy on the Authority and any other persons concerned under section 36.
• Under the draft Regulations, an appellant would be required to file grounds of appeal within 14 days of filing the notice of appeal, and the Authority would be required to file disclosure documents within 14 days of being served, and a response within 28 days of being served the grounds of appeal.

Applies to

corporate service providers, undertakings licensed under the Corporate Service Providers Business Act 2012, persons and individuals subject to Authority decisions under section 36 of the Act (including chief executive officers, senior executive officers and directors)

Deadlines

• 13th July 2013: Deadline for submitting comments on the draft Corporate Service Provider Appeal Tribunal Regulations 2013 to policy@bma.bm.
• 10 days from the Authority's decision: Proposed deadline for an undertaking to appeal a decision to restrict, vary a restriction of, or revoke its licence, or to refuse a licence application, under section 36(1)(a)-(c).
• 28 days from the Authority's decision: Proposed deadline for appeals relating to civil penalties, published statements, restrictions/revocations affecting a person, removal of an officer or director, notices of objection, or prohibition orders under section 36(1)(d)-(e) and 36(2)-(5).
• 14 days from filing the notice of appeal: Proposed deadline for the appellant to file grounds of appeal with the secretary.
• 14 days of being served a copy of a notice of appeal: Proposed deadline for the Authority to file disclosure documents listed in the Schedule.
• 28 days of being served a copy of the notice of grounds of appeal: Proposed deadline for the Authority to file its response.