Bermuda: Parliament Approves BMA Regulations

By added on 12/12/2011

Bermuda Monetary Authority fees will be kept to a minimum in 2012 — and reduced in the case of some locally-based insurers — in a bid to stimulate the financial services sector, Parliament was told on Friday [Dec. 10], reports Bernews.

Premier and Finance Minister Paula Cox told the House of Assembly that given the contracting local economy and increasing global competition, it made sense for the BMA — the island’s financial regulatory body — to run at a short-term loss in order to help boost Bermuda’ long-term prospects as an off-shore domicile.

“Mr Speaker, in an effort to minimise the impact of fee increases on the financial services industry, the Bermuda Monetary Authority has in the past several years run a deficit, thereby financing a portion of its operations from its existing reserves,” she said. “Recognising the current weak Bermudian economy, the Authority will follow the same approach in 2012, which will allow 2012 fee increases to be kept to a minimum. Fee increases will focus on those areas where anomalies exist or where 2012 regime change requires an increase in resources.

“Mr Speaker, 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.”