Supervisory responsibilities at the Authority are covered by two Departments; the Insurance Supervision Department (ISD) and the Banking, Trust Corporate Services and Investment (BTCSI) Department. ISD is responsible for the supervision, regulation and inspection of Bermuda’s insurers, investment funds and FinTech companies and BTCSI oversees the banks, trust companies, investment businesses, fund administrators, money service businesses and corporate services providers, as well as credit unions and the Bermuda Stock Exchange.
At a macro-level Supervision acts in the best interests of policyholders, depositors and clients, while facilitating the continued development of a viable, competitive and innovative financial services marketplace in Bermuda.
At a micro-level Supervision, via its risk-based supervision of licensed institutions, assesses inherent risks and the ability of the governance mechanisms (capital, systems, controls, management and boards) to mitigate such risks and determines appropriate supervisory intensity.
The department’s primary objectives are to:
The Authority is a member of several key international regulatory bodies. In this way, the Authority both stays informed about international regulatory developments and contributes to the development of global policy initiatives.
Policy and International Affairs provide critical input into the Authority’s achievement of its strategic goals and objectives. The objective of Regulatory Policy is to create a framework that supports the Authority’s objectives under the Bermuda Monetary Authority Act 1969. Regulatory policy development transforms international developments and regulatory issues into a suite of regulatory instruments (e.g. laws, regulations, codes, guidance notes) that achieve the intended outcomes while practical to the Bermuda financial markets. This necessitates consultation with our key stakeholders including the Government of Bermuda, the financial services sector and our international partners. International Affairs positions the Authority on the international stage through representation at key international standard setting bodies such as the International Association Insurance Supervisors, International Organization of Securities Commissions and Financial Stability Board. The function sets out to solidify relationships with key international regulators and acts as a liaison between the Authority and the international regulatory community. International Affairs promotes Bermuda’s position on a number of initiatives at the international level and provides feedback on matters that may require policy solutions.
The Legal Services and Enforcement Department is responsible for providing Bermuda legal advice to the Authority on a broad range of matters relating to the Authority’s statutory powers under Bermuda law. It is also responsible for the development and application of the BMA's enforcement framework in relation to the non-compliance of entities it supervises. Additionally, it assists the Authority’s Board as Secretary and with carrying out the Authority’s Corporate Governance function.
A member of the Authority’s Legal Services and Enforcement Department is also responsible for performing inter alia, the following functions:
Licensing and Authorisations (L&A) is responsible for the processing of all applications filed pursuant to the Insurance Act 1978 and the Investment Funds Act 2006. This includes applications for licensing, applications for deregistration, notification of material changes, requests for approvals, requests for exemption from or modification to the requirements stated in the legislation, and applications to register or authorise Bermuda funds. The Authorisations unit within the L&A team is also responsible for prudential supervision of Bermuda funds. When the need arises, the L&A team provides recommendations for the development of appropriate policies to support implementation of regulatory and supervisory framework.
The BTCSI Department has a separate Assessment and Licensing Committee process that reviews the Departmental analysis and recommendations for the issue of new licences under the provisions of the Banks and Deposit Companies Act 1999, Investment Business Act 2003, Investment Funds Act 2006 (for Fund Administrators), Corporate Services Provider Business Act 2012, Money Service Business Act 2016, Trust (Regulation of Trust Business) Act 2001 and Credit Unions Act 2011.
The Authority’s Operations Department is responsible for the following functions: