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Bermuda Monetary Authority Fines Barrington Investments Limited $50,000 - Restricts Licence

August 29, 2016

HAMILTON, BERMUDA - The Bermuda Monetary Authority (Authority) has fined local investment company, Barrington Investments Limited (Barrington), $50,000 for a number of serious regulatory breaches.

In addition, the Authority has restricted Barrington’s investment business licence. This means that while the company is permitted to continue with its existing business, it is prohibited from taking on any additional business. Specifically, Barrington will not be allowed to accept new investment business or solicit investment business through public advertising. The restrictions will remain in place until the Authority is satisfied that Barrington is fully compliant with all its obligations under the Investment Business Act 2003 (the Act).

Exercising its powers under the Act, the Authority found that Barrington was in breach of the Minimum Criteria for Licensing under the Act in three key areas: corporate governance; conducting business in a prudent manner; and risk management. The breaches included a failure to have in place governance and management structures appropriate to the business; a failure to have proper operational policies and procedures in place; a lack of a formalised internal control framework; and a failure to have a proper risk management function.

The breaches were identified during an on-site review conducted at Barrington by Authority personnel in February 2016. Thereafter the statutory process was followed, culminating in a 28-day appeal period which terminated on 24th August. The decision was not appealed.

 

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