Today, I will discuss the means employed by the BMA to ensure that licensed entities have their house in order, including prudential meetings and on-site visits.

To recap, 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 include (but are not limited to):

Fit and proper person test.
Corporate governance.
Whether business is conducted in a prudent manner.

In addition, certain regulated entities may be required to:

Have a policy of insurance to cover risks inherent in the operation of its business of an amount that is commensurate with the nature and scale of operations.

Maintain adequate accounting and other records of its business and systems of control of its business and records.

Maintain minimum net asset, capital and liquidity requirements.

To ensure that regulatory requirements are being satisfied, senior management should audit and periodically test the entity’s policies, procedures and controls for effectiveness and must be made aware of the potential personal liability if legal obligations are not being met. Senior management must address in a timely manner any shortcomings revealed by the independent internal audit.

Read More

Type

Insight

Locations

Bermuda

Share
Twitter LinkedIn Email Save as PDF
More Publications
29 Jun 2022

Bermuda’s legal system

Through an elected Bar Council, the Bar Association — in conjunction with the Supreme Court Judici...

29 Jun 2022

Avoid These 3 Common NDA Drafting Mistakes

It is difficult to think of a transaction that doesn’t begin with a confidentiality or non-disclos...

28 Jun 2022

Bermuda: a restructuring destination

Bermuda has an outsized, first-class insurance and financial sector, attracting complex, multination...

Contributors: James Batten
27 Jun 2022

Insurtech ILS and the New Normal

As Bermuda and the global markets with which the Island transacts move towards the so-called  ‘ne...

Contributors: Josephine Noddings
23 Jun 2022

Digital Assets in a Crypto Winter

In 2013, IT engineer James Howells was cleaning out his house. He had two identical hard drives: one...

Contributors: James Batten
22 Jun 2022

Bloomberg Tax Country Guide: Bermuda

Bloomberg Tax Country Guides provide overviews of the tax regimes of more than 200 jurisdictions. Th...

Contributors: Ashley Bento
9 Jun 2022

Bermuda’s long-term re/insurance landscape

Bermuda’s long-term re/insurance market has grown considerably in recent years. The island now has...

2 Jun 2022

Provisional Liquidation In Bermuda

Provisional liquidation in Bermuda is a distinctive, flexible regime that operates to support compan...

Contributors: James Batten
23 May 2022

The good life: Bermuda’s new economic pillar

The life sector has moved swiftly from being a new ‘nice-to-have’ in the Bermuda marketplace, to...

5 May 2022

Restructuring of (Re) Insurers during Covid-19

Restructuring involves changing the financial, operational, legal or other structures of a business ...