The Government will be able to dictate to banks what fees they can impose on customers under legislation passed in the Senate yesterday.

The Banks and Deposit Companies Amendment Act 2022, which was passed without objection, will also enable the finance minister – through the Bermuda Monetary Authority – to impose a code of conduct on companies conducting deposit-taking business.

Under the legislation, financial institutions must provide details of their business practices on request from the BMA and a failure to comply with the code could result in regulatory sanctions, including revocation of licence.

Douglas DeCouto, an OBA senator and shadow economic development minister, said: “This is clearly a Bill that goes in the right direction and will hopefully bring protection for consumers.”

However, he said the wording in banking contracts can be difficult for the lay person to understand, adding: “Banks are not inclined to simplify the language”.

He said that consumers should be educated on what to look for in their contracts.