Bermuda Monetary Authority Amendment Act 2006
BERMUDA MONETARY AUTHORITY AMENDMENT ACT 2006



BERMUDA

2006 : 27

BERMUDA MONETARY AUTHORITY AMENDMENT ACT 2006

Date of Assent: 24 July 2006

Operative Date: Notice in Gazette


ARRANGEMENT OF SECTIONS

1 Short title and
commencement

2 Interpretation
3 Amends section 1
4 Amends section 4
5 Amends section 4B
6 Amends section 4C
7 Repeals and replaces

section 4E
8 Repeals and replaces

section 4F
9 Repeals section 4G

10 Inserts section 20AA
11 Amends section 24
12 Amends section 29
13 Amends Third Schedule
14 Amends Fourth Schedule
15 Consequential

amendment
16 Schedule of minor

amendments

SCHEDULE



WHEREAS it is expedient to make minor amendments to
definitions of expressions used in the Act; to extend the immunity from
suit to reporting auditors and accountants; to make new provision for
executive members; to make provision for the regulation of money service
businesses; to make provision for a fee in respect of exempted collective
investment schemes and money service businesses; to make provision
for minor and consequential amendments; and for connected matters;


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Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

Short title and commencement
1 This Act may be cited as the Bermuda Monetary Authority
Amendment Act 2006 and shall come into operation on such day as the
Minister may appoint by notice published in the Gazette.

Interpretation
2 In this Act, "the principal Act" means the Bermuda Monetary
Authority Act 1969.

Amends section 1
3 Section 1 (1) of the principal Act is amended —

(a) in the definition of “Chairman” by inserting “appointed
under section 4E” after “the Board”;

(b) by inserting the following definitions in their alphabetical
order—

““executive Chairman” means the person appointed
under section 4E(1)(a);

“executive member” means a person appointed under
section 4F, and includes an executive Chairman;

“non-executive Chairman” means the person appointed
under section 4E(1)(b);”;

(c) by deleting the definition of “non-executive member” and
substituting the following —

“non-executive member” means a member of the Board
other than an executive member, and includes a non-
executive Chairman”;

(d) in the definition of “specified securities” —

(i) by deleting “either” at the end of the opening
paragraph;

(ii) by deleting “it” in the definition of “approved
corporation” in paragraph (c);

(iii) by inserting “or” at the end of paragraph (d); and

(iv) by inserting the following paragraph after
paragraph (d) —

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“(e) securities issued by a government sponsored
enterprise recognised by the Minister for this
purpose;”.

Amends section 4
4 Section 4 of the principal Act is amended —

(a) by repealing subsection (1) and substituting the
following—

“(1) There shall continue to be a Board of Directors of
the Authority which shall consist of —

(a) the Chairman;

(b) not more than two executive members;

(c) the chief executive officer (where appointed
under section 4F(1)); and

(d) eight members appointed by the Minister
from persons with experience of the financial
services industry, of whom four shall also
have experience of the insurance industry.”.

(b) by adding the following subsection after subsection (3)—

“(4) Except for paragraph 9, Part 1 of the First
Schedule shall not apply to a non-executive Chairman.”.

Amends section 4B
5 Section 4B of the principal Act is amended by inserting the
following subsection after subsection (3) —

“(4) For the purposes of this section, “agent” includes an
auditor, accountant or other person who by or under any
statutory provision is under a duty to give notice of, or report on,
any fact or matter to the Authority for the purposes of its
functions.”.

Amends section 4C
6 Section 4C of the principal Act is amended —

(a) by repealing subsection (2)(c) and substituting the
following—

“(c) determining the remuneration and other terms of
service of the executive members of the Board.”;
and

(b) by repealing subsection (4) and substituting the
following—

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“(4) A non-executive Chairman or, where no such
person has been appointed, the Deputy Chairman, shall
chair the committee.”;

(c) by inserting the following subsection after subsection
(6)—

“(7) The committee shall prepare a report on the
performance of its functions in the course of the
preceding year and shall include its report in the
annual report prepared under section 28.”.

Repeals and replaces section 4E
7 Section 4E of the principal Act is repealed and replaced by the
following —

“Chairman
4E (1) Subject to this section, the Minister shall appoint a
person with proven experience of the financial services industry
to be—

(a) an executive member of the Board and its Chairman
(“executive Chairman”); or

(b) a non-executive member of the Board and its
Chairman (“non-executive Chairman”).

(2) A person appointed executive Chairman shall, by virtue
of such appointment, be the chief executive officer of the
Authority.

(3) A person is disqualified for appointment as Chairman
if—

(a) he is a member of either House of the Legislature; or

(b) he is a director or an officer of, or is employed by, a
person licensed by the Authority.

(4) An appointment made under subsection (1) shall be for a
term of not less than three years and not more than five years,
and may be renewed.

(5) A person appointed as Chairman shall vacate his office if
he becomes a person to whom subsection (3)(a) or (b) applies.

(6) The Minister acting after consultation with the Authority
may terminate the appointment of the Chairman if he is satisfied
that ⎯

(a) he has become bankrupt, that his estate has
been sequestered or that he has made an

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arrangement with or granted a trust deed for his
creditors; or

(b) he is unable or unfit to discharge his functions
as Chairman.”.

Repeals and replaces section 4F

8 Section 4F of the principal Act is repealed and replaced by the
following —

“Executive members
4F (1) Subject to this section, the Authority shall appoint
the other executive members of the Board and may appoint one
of their number to be the chief executive officer of the Authority.

(2) The Authority shall not appoint a person to be chief
executive officer at any time during which the Chairman is an
executive Chairman.

(3) A person appointed chief executive officer of the
Authority shall, subject to the directions of the Authority,
administer its affairs.

(4) An appointment made under subsection (1) shall not
have effect until it has been approved by the Minister.

(5) A person is disqualified for appointment as executive
member if —

(a) he is a member of either House of the
Legislature; or

(b) he is a director or an officer of, or is employed
by, a person licensed by the Authority.

(6) An executive member shall vacate his office if he
becomes a person to whom subsection (5)(a) or (b) applies.

(7) The Minister acting on the advice of the Authority
may terminate the appointment of an executive member if he is
satisfied that the executive member ⎯

(a) has become bankrupt, that his estate has been
sequestered or that he has made an
arrangement with or granted a trust deed for his
creditors; or

(b) is unable or unfit to discharge his functions as
an executive member of the Authority.”.

Repeals section 4G
9 Section 4G of the principal Act is repealed.

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Inserts section 20AA
10 The principal Act is amended by inserting the following section
after section 20A —

“Money service business
20AA (1) For the purpose of this section, “money service
business” means the business of providing any of the following
services to the general public —

(a) money transmission services;

(b) cashing cheques which are made payable to
customers and guaranteeing cheques;

(c) issuing, selling or redeeming money orders or
traveller’s cheques for cash;

(d) issuing credit or debit cards, or otherwise
providing means of electronic payment;

(e) intermediating means of payment over the
internet;

(f) operating a bureau de change whereby cash in
one currency is exchanged for cash in another
currency.

(2) The Minister may by regulations subject to negative
resolution procedure, make provision for the regulation by
the Authority of money service businesses.

(3) Without prejudice to the generality of subsection (2),
regulations may in particular provide with respect to any of
the following matters —

(a) the licensing of money service businesses;

(b) the persons by whom and the manner in which
applications in connection with licensing are to be
made;

(c) the information and evidence to be provided in
connection with such applications and such
supplementary information or evidence as may be
required by the Authority;

(d) the issue of licences and their surrender;

(e) the refusal, and termination of licences in
specified circumstances;

(f) matters arising out of the expiration, or
termination of licences; and

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(g) the charging of fees by the Authority in connection
with the issue and holding of licences.

(4) Regulations made under subsection (2) may —

(a) make different provision for different classes or
descriptions of money service businesses and for
different circumstances;

(b) provide for the granting of exemptions;

(c) provide for dispensations by the Authority from
specified requirements of the regulations subject
to such conditions (if any) as the Authority thinks
fit to impose;

(d) create offences subject to the limitation that no
offence shall be punishable on summary
conviction with a fine exceeding $50,000 or
imprisonment exceeding 2 years; and

(e) make such transitional, incidental or
supplementary provision as appears to the
Minister to be necessary or expedient.

(5) The Minister may by Order subject to affirmative
resolution procedure amend the meaning of money service
business.”.

Amends section 24
11 Section 24 of the principal Act is amended —

(a) by designating the existing section as subsection (1);

(b) by inserting the following subsection after subsection
(1) —

“(2) Subsection (1)(a) shall not apply to the leasing
by the Authority of any real property that the Authority
has purchased, acquired or leased in circumstances
falling within the exception to subsection (1)(d).”.

Amends section 29
12 Section 29(3) of the principal Act is repealed.

Amends Third Schedule
13 The Third Schedule is amended by inserting in its alphabetical
order the following —

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“Money Service Business”.

Amends Fourth Schedule
14 The Fourth Schedule is amended under the heading “Bermuda
Monetary Authority Act 1969” by designating the existing paragraph as
paragraph (1) and inserting the following paragraphs after paragraph (1)
—

“(2) On an application for an exemption made under
regulation 3A of the Bermuda Monetary Authority (Collective
Investment Scheme Classification) Regulations 1998 and
annually thereafter…………………….……………………….….$350.

(3) On an application for a licence to carry on money service
business pursuant to regulations made under section 20AA(2) of
this Act and annually thereafter …………………………..$1,500.”.

Consequential amendment
15 The Ninth Schedule to the Companies Act 1981 is amended by
repealing paragraph (b) and substituting the following paragraph —

“(b) providing by way of business any of the following services to
the general public ⎯

offering of professional services as a barrister and
attorney, medical practitioner, architect, dental
practitioner, public accountant, optometrist, optician,
professional surveyor, nurse, health service provider or
any profession or occupation specified under the First
Schedule to the Professions Supplementary to Medicine
Act 1973.”.

Schedule of minor amendments
16 The provisions of the principal Act set out in the first column of
the Schedule are amended as provided in the second column.

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SCHEDULE (Section 16)
PROVISION
AMENDED

AMENDMENT

s. 2(5) “director or” is deleted.

s. 7(1) “Board” is deleted and “Authority” substituted.

s. 8(3) “Board” is deleted and “Authority” is substituted.

s. 21(2) “Board” is deleted and “Authority” is substituted.

s. 23(b) “Board think” is deleted and “Authority thinks” is
substituted.

“functions of the Authority” is deleted and “its
functions.” is substituted.

s. 23(g) “Board” is deleted and “Authority” is substituted.

s. 23(j) “Board” is deleted and “Authority” is substituted.

s. 24 (d) “Board” is deleted and “Authority” is substituted.

s. 27(1) “Board” is deleted and “Authority” is substituted.

s. 27 (1B) “Board” is deleted and “Authority” is substituted.

s. 29 (1) “Board” is deleted and “Authority” is substituted.

s. 30 “Board” is deleted and “Authority” is substituted.

s. 31(1) “a director of the Board or who is” is deleted and
“, or is” substituted.

s. 31(1AA)(b) “Board or the” is deleted.

s. 31(2) “director” is deleted.

s. 32 “director” is deleted.