The Bermuda Monetary Authority has released a responses document on the development of a conduct of business regulatory regime in the territory.
In August 2020, the BMA released a discussion paper on its plans to broaden its mandate by developing a conduct of business regime for the financial services sectors it regulates. It launched talks with the industry on how to increase consumer protections, focusing on retail investors, rather than wholesale consumers.
The paper noted international work in this area, including by the International Organization of Securities Commissions (IOSCO), which has been endorsed by the G-20 and OECD. The paper says that Bermuda will look at the model in place in Ireland, where the Central Bank of Ireland has responsibility for both prudential regulation and conduct of business and consumer protection concerns for multiple sectors including banking, insurance and securities.
Following on from consultations with the industry, the BMA has now said it intends, this year, to put forward a bill to amend the BMA Act. This will provide the
statutory remit to create the oversight of financial institutions’ conduct of business.
Further, in the second half of 2021, the Authority said it will issue consultation papers to propose amendments to the existing insurance code of conduct and a new code of conduct for banks.
The BMA set out its plans in an April 23, 2021, letter that responds to feedback from the industry on its proposals, titled “Re: Consultation Paper – Proposal for a Conduct of Business Regulatory Regime” and published on its website on April 23. This letter responds to concerns regarding the practical application of the rules and the potential cross-border scope of the regime.