Notice-Amendment to Corporate Service Provider Business Act 2012 (2017-05-23)

Summary

This is a notice from the Bermuda Monetary Authority announcing a proposed amendment to Section 10(5)(b) of the Corporate Service Provider Business Act 2012, together with the draft Corporate Service Provider Business Amendment Act 2017 and its explanatory memorandum. The amendment clarifies what activities a limited licence corporate service provider (CSP) may undertake and when Authority approval is required.

• Current wording: Limited licence CSPs are currently excluded outright from performing company/partnership formation activities (section 2(2)(a)) and register of members alteration activities (section 2(2)(c)(vii)).
• Clarified intent: The Authority intends for limited licence CSPs to be able to perform all corporate services in section 2(2), but require the Authority's prior approval to perform the section 2(2)(a) and 2(2)(c)(vii) services, except where such approval is not expressly required by law.
• Draft legislative change: The attached draft Amendment Act 2017 would amend section 10(5)(b) of the principal Act to require Authority permission before forming a company or partnership, or before making an alteration to a register of members by transfer or issue of shares/interests, unless expressly not required by law.
• Commencement: The Amendment Act would come into operation on a day appointed by the Minister by notice in the Gazette, with different days possible for different provisions.

The notice invites questions or comments on the proposed amendment to be sent to the Authority's Director of Policy, Legal and Enforcement by 31 May 2017.

Key obligations

• Limited licence corporate service providers must obtain the Authority's prior permission before performing corporate services under sections 2(2)(a) and 2(2)(c)(vii) of the CSP Act (company/partnership formation, or alteration of a register of members by transfer or issue of shares/interests), unless such approval is expressly not required by law.
• Persons with questions or concerns about the amendment must contact the Authority (csp@bma.bm) by 31 May 2017.

Applies to

corporate service providers, limited licence corporate service providers

Deadlines

• 31st May, 2017: Deadline to contact the Authority (Director Policy, Legal and Enforcement) with questions or clarity requests regarding the proposed CSP Act amendment.
• day appointed by the Minister via Gazette notice: Commencement date for the Corporate Service Provider Business Amendment Act 2017, which may differ for different provisions.

Related documents

• This document amends Corporate Service Provider Business Act 2012