Regulated entities, including those licensed under the Investment Business Act 2003, the Investment Funds Act 2006 and the Insurance Act 1978, must meet certain minimum criteria. Such entities must make an annual filing with the BMA, certifying that the entity has met these minimum criteria. Consequently, entities should evaluate the minimum criteria regularly, at least annually, and create a plan and timeline for any deficiencies found by their internal review or audit.

The minimum criteria includes, but is not limited to:

Fit and proper person test;

Corporate governance; and

Whether business is conducted in a prudent manner.

Regulated entities are required to evaluate each of their officers, directors, employees and consultants to confirm their fitness and propriety to perform the duties assigned to them. This must be carried out prior to their appointment and at least annually.

The fitness and propriety of an individual encompasses the experience, skills and knowledge relative to the duties and responsibilities that they will fulfil as well as experience, qualifications, and the person’s previous conduct, reputation and character including whether that person has a criminal record, a record of past misconduct, or a record of non-compliance with codes of conduct.

This is probably an area that is best co-ordinated with the human resources department of the regulated entity.

Regulated entities are required to implement corporate governance policies and processes as the BMA considers appropriate given the nature, size, complexity and risk profile of the regulated entity. This requires that the business of the regulated entity be effectively directed by at least two individuals and under the oversight of such number of non-executive directors as the BMA considers appropriate.

Read More

Type

Insight

Locations

Bermuda

Share
Twitter LinkedIn Email Save as PDF
More Publications
1 Sep 2021 |

Changes to rules on Permanent Residency Certificates

The Ministry of Labour has recently issued a policy paper, ‘Securing Permanency for Long-Term Resi...

26 Aug 2021 |

What to remember when an employee leaves

Just as when a new recruit is on-boarded, there are a variety of tasks an employer needs to deal wit...

23 Aug 2021 |

BMA seeks more seamless marketplace with ILS process enhancements

Recent changes made by the Bermuda Monetary Authority (BMA) to improve processes specific for catast...

17 Aug 2021 |

ILS Bermuda Executive Roundtable 2021

Despite the impacts of the Covid-19 pandemic and subsequent restrictions on travel and face-to-face ...

13 Aug 2021 |

A digital asset future: closer than we think

Most of us at some point in our lives have participated in a rewards programme either at our favouri...

26 Jul 2021 |

What not to forget when an employee leaves

There are many practical and ‘housekeeping’ matters that employers need to deal with when an emp...

Contributors: Jordan Knight
23 Jul 2021 |

Contributed surplus: it’s not capital!

Last week, in part one, we discussed the meaning of share premium, the various ways a company may us...

16 Jul 2021 |

Share premium: do you have it?

When the issuance of shares by a company is discussed, the first thought that comes to mind is the s...

2 Jul 2021 |

No question you’ll see more life reinsurers in Bermuda

While the emergence of property and casualty (P&C) startups in Bermuda is likely to be muted in ...

2 Jul 2021 |

Bermuda: An introduction to Dispute Resolution

This edition discusses Current Economic Conditions and Dispute Resolution Activity, Trends & Dev...

Contributors: Jordan Knight