17 August 2020News

BMA begins consultation process to strengthen enforcement measures

The Bermuda Monetary Authority (BMA) is  consulting with the industry as it looks to strengthen its enforcement process.

In light of the government’s decision to remove the appeal tribunal from the supervisory review process, the BMA is conducting an assessment of its disciplinary and enforcement process. The assessment accounts for the fact that reviews of its decisions will now be heard by the Supreme Court, the BMA said.

The regulator has proposed making its enforcement committee a decision making committee, and wants to adopt a new procedure for settlement with regulated financial and non-financial institutions (RFI).

The BMA has also proposed changes to reinforce its internal procedures, ensuring there is more transparency when enforcement measures have been commenced. It said it will engage with RFIs when determining whether an enforcement action is necessary, and introduce a graduated discount for settlement with RFIs. The value of such a discount has not yet been determined, the BMA said.

Bermuda will also review the legislation around settlement and the appeals process. The BMA said: “The process must be robust and fair and demonstrate, not only to the RFI but all stakeholders, the reasons for the enforcement actions taken.”

The BMA has invited responses to its proposed changes by September 11.