Corporate Service Providers Business Act 2012 Statement of Principles

Summary

This is the Bermuda Monetary Authority's Statement of Principles issued under section 6 of the Corporate Service Providers Business Act 2012. It explains how the Authority interprets the First Schedule minimum licensing criteria and the grounds for revocation, and how it exercises its powers to grant, restrict or revoke licences and to obtain information from licensed undertakings.

• Licensing criteria: Sets out the Authority's interpretation of First Schedule criteria including fitness and propriety of controllers and officers, suitability of shareholder controllers, board composition, prudent conduct, accounting and record keeping systems, integrity and skill, and the reputation of Bermuda.
• Continuing supervision: Describes ongoing supervisory expectations including periodic reporting, prudential discussions with senior management, and routine compliance visits to licensees' premises.
• Licensing decisions: Explains the considerations the Authority applies when deciding whether to grant a licence.
• Information and enforcement powers: Describes the Authority's statutory powers under sections 46 to 49 of the Act to require information, reports, certificates of compliance, and production of documents, and to enter business premises.

The document is a policy statement rather than a set of new rules; it should be read together with the related Guidance Notes and the Statement of Principles on the Use of Enforcement Powers, which prevails on enforcement matters where they differ. The version reviewed here is dated December 2012 and invited public comment by 31 January 2013, indicating it may reflect an early or consultation-stage text.

Key obligations

• Undertakings must notify the Authority immediately if they become aware of material information affecting the fitness of any person subject to vetting
• Undertakings must alert the Authority to any proposed material change in their business so implications for the minimum criteria can be assessed
• Undertakings must notify the Authority immediately if they become aware of material concerns regarding the suitability of a major (shareholder) controller
• Undertakings must submit a certificate of compliance, signed by an officer, certifying compliance with the minimum criteria (section 46)
• Undertakings must comply with notices under sections 47 and 48 requiring information, documents, or professional reports, and permit entry to business premises under section 49 for that purpose
• Undertakings must alert the Authority forthwith upon becoming aware of breaches or potential breaches of the minimum criteria

Applies to

Corporate service providers (CSPs) licensed under the Corporate Service Providers Business Act 2012, controllers and officers of licensed undertakings, shareholder controllers of licensed undertakings

Deadlines

• 31st January 2013: Deadline for public comments on the proposals in this Statement of Principles paper, to be sent to the Authority