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BMA to bolster legislation that governs corporate service providers

Bermuda Monetary Authority headquarters in Hamilton (File photograph)

The Bermuda Monetary Authority is seeking feedback from the corporate service provider community as it moves forward with enhancements to the legislation that governs it.

The island’s financial services regulator has authored a consultation paper on the proposed enhancements to the Corporate Service Provider Business Act 2012.

It has asked the island’s corporate service providers to provide feedback by August 9.

The BMA said: “The proposed amendments to the Act are driven by the primary objective of enhancing the regulatory framework, thus aligning Bermuda with global standards and fortifying the jurisdiction’s commitment to robust financial governance.

“In addition to these overarching goals, the amendments’ secondary purpose is to address crucial supervisory and administrative adjustments.”

Among the proposals are that a minimum net asset requirement be introduced to the regulatory framework with a proposed amount of $50,000 for unlimited licence holders and $12,000 for limited licence holders.

It is also proposed that CSPs that hold client money be required to submit annual audited accounts to the BMA. There is also a recommendation for additional filing requirements.

A late fee of $1,000 is proposed where a mandatory filing is not submitted within the required period stipulated in the legislation.

The consultation paper proposes that the governing legislation be amended to broaden the circumstances in which the BMA may present a petition to the court for the winding up of a company or the dissolution of a firm.

Stakeholders are asked to submit their comments to policy@bma.bm.

•See the Consultation Paper and Amendment Bill under “Related Media”

You must be Registered or to post comment or to vote.

Published June 16, 2024 at 7:00 pm (Updated June 17, 2024 at 5:59 pm)

BMA to bolster legislation that governs corporate service providers

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