Bermuda Monetary Authority (Financial Institutions) (Control) Regulations 1994

Summary

These 1994 regulations, made by the Bermuda Monetary Authority under the Bermuda Monetary Authority Act 1969, control the establishment, relocation and closure of branches, subsidiaries and representative offices of financial institutions. They set out approval, notification, information and inspection requirements, and create related offences for non compliance.

• Prior approval required: A financial institution or its subsidiary must obtain the Authority's prior written approval before establishing any branch, subsidiary or representative office, whether inside or outside Bermuda.
• Approval for relocation: 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.
• Notification 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.
• Conditions and revocation: The Authority may attach, vary or revoke conditions on approvals, and may revoke an approval, subject to giving notice and an opportunity to respond.
• Right of appeal: An aggrieved financial institution or subsidiary may appeal in writing to the Minister within twenty one days of a refusal, revocation, or imposition or variation of a condition.
• Ongoing information and inspection duties: Institutions maintaining a branch, subsidiary or representative office must submit information as and when the Authority specifies, and must permit inspection (including access to books, accounts, documents, securities and cash) if requested information is not supplied.
• Transitional notification: Institutions with branches, subsidiaries or representative offices lawfully established before these Regulations came into operation had thirty days from commencement to notify the Authority of their existence and location in order to obtain continuance approval.
• Offences: Directors and managers who contravene the approval, notification or information requirements, or who submit false or misleading information, are guilty of an offence.

The Regulations have been amended twice since enactment (by BR 2/1995 and by 2008:3), primarily affecting the interpretation section, but the core control, notification, approval and inspection framework remains in force.

Key obligations

• Obtain the Authority's prior written approval before establishing any branch, subsidiary or representative office (regulation 3).
• Notify the Authority in writing within fourteen days of closing a branch or representative office, or of a subsidiary ceasing business operations (regulation 4).
• Obtain the Authority's prior written approval before relocating an existing branch, subsidiary or representative office, other than moving an ATM within the same building (regulation 5).
• Submit information to the Authority in such form and at such intervals as it specifies, and provide further information within any period and manner the Authority requires (regulation 9).
• Afford the Authority or its authorised inspector access to books, accounts, documents, securities, cash and other information during an inspection triggered by a refusal to supply information (regulation 10).
• Notify the Authority in writing within thirty days of the Regulations' commencement of the existence and location of any branch, subsidiary or representative office lawfully established beforehand, to obtain continuance approval (regulation 12).
• An aggrieved institution may appeal a refusal, revocation, condition or variation to the Minister within twenty one days of that decision (regulation 8).

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 the closure of a branch or representative office, or cessation of a subsidiary's operations.
• within twenty-one days from the date of refusal, revocation, imposition or variation: Deadline for an aggrieved financial institution or subsidiary to appeal in writing to the Minister.
• within thirty days from the coming into operation of these Regulations: Transitional deadline for institutions with pre-existing branches, subsidiaries or representative offices to notify the Authority of their existence and location to obtain continuance approval.
• 16 December 1994: Date the Regulations were brought into operation.

Related documents

• This document is made under Bermuda Monetary Authority Act 1969