Bermuda Monetary Authority to Get Expanded Role

Tax-news.com

12 December 1999

Bermuda is set to introduce two new sets of financial regulations that will expand the role of the Bermuda Monetary Authority. The Banks and Deposit Companies Act and the Investment Business Act are currently before the Bermuda parliament and are expected to be implemented as soon as next January.

The chairwoman of the Bermuda Monetary Authority Cheryl Lister warned business this week to expect changes to regulations in the new year when the Authority takes on its new expanded role.

The most significant change will be the transfer of licensing powers from the Minister to the Bermuda Monetary Authority which Ms Lister said was essential because it will ensure that "regulation lies with professional supervisors, with a clear separation of the prudential from the political aspects".

On a more general note, Ms Lister dismissed the objections of business to the Bank and Deposit Companies Act, saying it merely formalises many existing rules and practices. She went on to describe the Act as 'a step that Bermuda must make to protect its reputation as a quality international financial centre', noting that 'we have received considerable support in this effort from the financial institutions who mostly will be impacted by the changes, as they realise that it is in their best interests to show that they are regulated in line with international standards.'

With regard to the Investment Business Act, Ms Lister said that it will subject a range of previously unsupervised business sectors to regulation.

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