Stakeholder Letter: Consultation Paper: New Legislative Framework for Fund Administrators (2019-07-24)

Summary

This is a stakeholder letter from the Bermuda Monetary Authority summarizing feedback and next steps following its 24 April 2019 Consultation Paper on a new regulatory and supervisory regime for fund administrators. The Paper had been accompanied by a draft Fund Administration Provider Business Act 2019, intended to move fund administrator oversight out of Part III of the Investment Funds Act 2006 into its own sector-specific legislative framework.

• Confirmed direction: The Authority confirms it will proceed with a standalone, sector-specific legislative regime for fund administrators, separate from the framework governing investment fund products.
• Feedback received: Limited formal feedback was received on the Paper and draft Bill, largely because the proposals mirrored an earlier 2018 Discussion Paper.
• Wording clarification: The Authority clarifies that the draft Bill's provision allowing fund administrators to apply for approval to hold certain non-financial, non-client-money assets will use the term safe-guarding of other assets rather than safe-keeping of other assets, for consistency with terminology in the Investment Business Act 2003.

This letter is informational and reports the outcome of a consultation process rather than enacting new law; the actual legislative changes will follow via the Fund Administration Provider Business Act 2019 once finalized. Stakeholders with questions are directed to contact the Authority at policy@bma.bm.

Applies to

fund administrators