Licence Restriction - Barrington Investments Limited (2016-08-29)

Summary

This is a notice from the Bermuda Monetary Authority (BMA) announcing enforcement action against Barrington Investments Limited, a local investment business licensee. The Authority imposed a $50,000 fine and restricted the company's investment business licence following findings of serious regulatory breaches identified during an on-site review in February 2016.

• Fine: Barrington was fined $50,000 by the Authority.
• Licence restriction: Barrington may continue existing business but is prohibited from taking on any additional investment business or soliciting new business through public advertising.
• Breaches found: Failures in three Minimum Criteria for Licensing areas under the Investment Business Act 2003: corporate governance, conducting business in a prudent manner, and risk management, including inadequate governance structures, missing operational policies and procedures, no formalised internal control framework, and no proper risk management function.
• Duration of restriction: Restrictions remain in place until the Authority is satisfied Barrington is fully compliant with all obligations under the Investment Business Act 2003.
• Appeal outcome: A 28-day appeal period ended on 24 August 2016 and the decision was not appealed.

This is a company-specific enforcement notice rather than a rule of general application; it does not impose new obligations on other licensees but signals the Authority's supervisory expectations regarding governance, prudent conduct, and risk management under the Investment Business Act 2003.

Key obligations

• Barrington Investments Limited must not accept any new investment business.
• Barrington Investments Limited must not solicit investment business through public advertising.
• Barrington Investments Limited must achieve and demonstrate full compliance with all obligations under the Investment Business Act 2003 before the licence restrictions will be lifted.

Applies to

investment business licensees, local investment company (Barrington Investments Limited)

Deadlines

• 24 August 2016: End of the 28-day appeal period following the Authority's decision; the decision was not appealed.