The Authority will not grant a licence unless satisfied that the applicant
has met and has the ability to continue to meet minimum licensing criteria as
set out in the First Schedule of the Act. It must be stressed that, even when satisfied,
the Authority always retains discretion to refuse an application.
The minimum licensing criteria is the same for both a limited and an unlimited
licence, and consist of the following requirements.
1. controllers and officers of the undertaking must be fit and proper
2. undertaking shall implement corporate governance policies and processes
as the Authority considers appropriate given the nature, size, complexity and
risk profile of the undertaking;
3. the undertakings business must be conducted in a prudent manner. This
includes (although is not limited to) maintaining the undertakings:
- general strategy and objectives;
- planning arrangements;
- policies on accounting, collections and bad
- ability to maintain adequate liquidity to
meet its obligations as they fall due;
- recruitment arrangements and training to
ensure that the undertaking has adequate numbers of experienced and
- occupy premises suitable for the purpose of
conducting its business;
- capital adequacy (minimum net assets at least
$250,000 in the case of an undertaking that is a Company; $25,000 for
undertakings other than companies; or such larger amount as the Authority
- adequate accounting and record-keeping
- adequate insurance coverage.
4. consolidated supervision - The position of the undertaking within the
structure of any group to which it belongs or its links with any related
companies shall be such that it will not obstruct the conduct of effective
consolidated supervision; and
5. the undertakings business must be carried on with integrity and the
professional skills appropriate to the nature and scale of its activities.
determining whether an undertaking is conducting its business in a prudent
manner, the Authority shall take into account any failure by the undertaking to
comply with the provisions of the Act, other provisions of law, the Code of Practice
and international sanctions in forced in Bermuda.
Exempted from Licensing
(Regulation of Trust Business) Exemption Order 2002 which came into force on 9
August 2002 provides for a number of exemptions from licensing within the
company shall certify to the Authority that it qualifies for an exemption within
three months of the date coming into force of the Order. They shall also notify the Authority of any
change in the nature and scope of the trust business that has been approved by
the Minister as soon as practicable after approval.
The description above is intended to be a brief
summary of the Trusts (Regulation of Trust Business) Act 2001 and should be
used as a guide only. Interested parties should obtain and read the full text
of the legislation for complete information. Texts of Bermuda’s public
legislation may be accessed at Bermuda Laws.