Bermuda Monetary Authority (Financial Institutions) (Control) Regulations 1994 (BR 55/1994)

Summary

These regulations, made under the Bermuda Monetary Authority Act 1969, require financial institutions and their subsidiaries to obtain the BMA's prior written approval before establishing, relocating or continuing branches, subsidiaries or representative offices, whether inside or outside Bermuda. They also empower the Authority to attach or vary conditions on approvals, revoke approvals, request information, and conduct inspections where information is withheld.

• Prior approval: A financial institution or subsidiary must obtain the Authority's prior written approval before establishing any branch, subsidiary or representative office, in or outside Bermuda.
• Notice of closure: A financial institution must notify the Authority in writing within fourteen days of closing a branch or representative office, or of a subsidiary ceasing business operations.
• Relocation control: Prior written approval is also required to change the location of an existing branch, subsidiary or representative office, except for moving an automatic teller machine within the same building.
• Conditions and revocation: The Authority may attach, vary or revoke conditions on an approval, or revoke the approval itself, by written notice, subject to a right to object and a right of appeal to the Minister within twenty one days.
• Information and inspection: Institutions maintaining a branch, subsidiary or representative office must submit information requested by the Authority in the form and at the intervals it specifies, and must submit further information within required periods; refusal can trigger an inspection with access to books, accounts, documents, securities and cash.
• Offences: Directors and managers who contravene the approval, relocation, information or inspection provisions, or who submit false or misleading information, are guilty of an offence.
• Transitional notification: Institutions with branches, subsidiaries or representative offices lawfully established before the Regulations came into operation had to notify the Authority in writing, within thirty days of commencement, of the existence and location of each such branch, subsidiary or representative office to obtain continuing approval.

Key obligations

• Obtain the Authority's prior written approval before establishing any branch, subsidiary or representative office, in or outside Bermuda.
• Obtain the Authority's prior written approval before relocating an existing branch, subsidiary or representative office (except moving an ATM within the same building).
• Notify the Authority in writing within fourteen days of closing a branch or representative office, or of a subsidiary ceasing business operations.
• Submit information to the Authority in the form and at the intervals the Authority specifies, and further information within periods the Authority requires.
• Afford the Authority or its authorised inspectors access to books, accounts, documents, securities, cash and other information during an inspection triggered by refusal to submit required information.
• File a written appeal to the Minister within twenty one days of a refusal, revocation, imposition or variation of a condition, if aggrieved.
• Institutions with pre existing branches, subsidiaries or representative offices had to notify the Authority in writing within thirty days of the Regulations coming into operation of their existence and location.

Applies to

financial institutions, subsidiaries of financial institutions, branches of financial institutions, representative offices of financial institutions

Deadlines

• within fourteen days from the date of closure or cessation: Financial institution must notify the Authority in writing of closure of a branch or representative office, or cessation of a subsidiary's business operations.
• within twenty-one days from the date of refusal, revocation, imposition or variation of a condition: Deadline for a financial institution or subsidiary to appeal in writing to the Minister.
• within thirty days from the coming into operation of these Regulations: Transitional obligation to notify the Authority in writing of the existence and location of a pre-existing branch, subsidiary or representative office.
• 16 December 1994: Date the Regulations were brought into operation.

Related documents

• This document is made under Bermuda Monetary Authority Act 1969