MPs passed a bill to raise the Bermuda Monetary Authority's company fees and widen its board membership.

The Bermuda Monetary Authority Amendment (No. 2) Act will increase non-executive members on the board of directors from eight to ten. It will also raise annual fees payable by licensed institutions by about five percent for the coming year.

Introducing the second reading of the bill on Friday night, Finance Minister Paula Cox said: "The purpose of this Bill is to amend the Bermuda Monetary Authority Act, 1969, to further enhance Bermuda's position as a leading financial centre."

The fees for 2010 aim to cover the widened regulatory and supervisory functions of the BMA. The Authority is responsible for the supervision, regulation and inspection of financial institutions operating in Bermuda.

It also issues currency, manages exchange control transactions, assists in the detection of financial crimes, advises Government on monetary matters and regulates the Bermuda Stock Exchange.

Ms Cox said: "While the Authority is committed to running its affairs prudently and efficiently so as to keep the financial burden on regulated firms as low as possible, some increase in resources will be necessary if the Authority is to achieve its objectives and continue to effectively discharge its supervisory remit.

"These amendments are necessary to ensure that Bermuda continues to be recognised as a leading jurisdiction for financial services.

"One that is competitive and well-regulated but which is nevertheless able to efficiently process applications from new entrants to the market from credible jurisdictions."

A fee has also been introduced for organisations being registered under the Proceeds of Crime Regulations (Supervision and Enforcement) Act 2008.

The Minister added that the BMA's investment income, fees from company incorporations, and new licence applications were down compared to last year. However at the same time, its workload has increased due to more complex policies and greater operational supervision as a result of the global financial crisis.

Commenting on the widened board of directors, Ms Cox said: "This decision will increase the potential decision-making capacity of that body."

Shadow Environment Minister and Party Whip, Cole Simons, welcomed the bill on behalf of the Opposition.

He said: "The effort to get the BMA to be more self-sufficient financially has a lot do with this legislation.

"We understand this legislation and have no objections to it."

Shadow Works and Engineering Minister, Patricia Gordon-Pamplin, added: "I do believe that when we recognise and see the value added from additional fees, it makes that pill a little less bitter it goes down that bit sweeter.

"I don't object to the concept of the fee increases."

The bill was passed by a cross-party section of MPs on Friday night.