Bermuda Monetary Authority Amendment Act 2008
BERMUDA MONETARY AUTHORITY AMENDMENT ACT 2008



BERMUDA

2008 : 3

BERMUDA MONETARY AUTHORITY AMENDMENT ACT 2008

Date of Assent: 25 March 2008

Operative Date: 25 March 2008

ARRANGEMENT OF SECTIONS

1 Short title
2 Interpretation
3 Section 3 amended
4 Section 30A amended
5 Section 30B amended
6 Section 30D amended

7 Section 30E added
8 Third Schedule amended
9 Fourth Schedule amended
10 Consequential

amendments



WHEREAS it is expedient to enlarge the scope of the Authority’s
powers of assistance to foreign regulatory authorities; to clarify the use of
statements obtained under compulsion, to increase certain supervisory
fees, and to make provision for connected matters;

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
1 This Act may be cited as the Bermuda Monetary Authority
Amendment Act 2008.

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


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Section 3 amended
3 Section 3(1) of the principal Act is amended by inserting
immediately after paragraph (bc) the following ⎯

“(bd) to assist foreign regulatory authorities in the
discharge of their functions;”.

Section 30A amended
4 Section 30A (7) of the principal Act is repealed and the following
substituted —

“ (7) The Authority shall decline to exercise the powers
conferred by section 30B (1) (c) unless it is satisfied that
any statement that may be given in the exercise of that
power cannot be used against the maker of the statement in
evidence in criminal proceedings under the law of the
jurisdiction of the foreign regulatory authority.”.

Section 30B amended
5 (1) Section 30B (1) of the principal Act is amended ⎯

(a) by deleting the paragraph beginning with “Where in
accordance” and ending with “financial institution” and
substituting the following ⎯

“Where in accordance with section 30A the Authority is
satisfied that assistance should be provided pursuant to
a request by a foreign regulatory authority and that the
request is in relation to information which is in the
possession or under the control of a person in Bermuda,
the Authority may by notice in writing served on such
person (“specified person”) —”;

(b) by deleting “institution” and substituting “specified
person” in paragraph (a);

(c) by deleting “institution” and substituting “specified
person” in paragraph (b);

(d) by repealing paragraph (c) and substituting the
following⎯

“(c) require the specified person or any of his officers,
servants or agents to attend before the Authority at
a specified time and place and answer any questions
on oath or otherwise furnish any information with
respect to any matter relevant to the inquiries; or”;
and

(e) by deleting “institution” where it appears in paragraph
(d) and substituting in each case “specified person”.

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(2) Section 30B (4) is repealed.

Section 30D amended
6 Section 30D of the principal Act is amended by inserting the
following subsection after subsection (2) ⎯

“(3) A person who, in purported compliance with section
30B (1) (c) ⎯

(a) makes a statement which he knows to be false in a
material particular; or

(b) recklessly makes a statement which is false or
misleading in a material particular,

commits an offence and is liable on summary conviction to a fine
of $25,000 or to imprisonment for two years, or to both.”.

Section 30E added
7 The principal Act is amended by inserting the following new
section after section 30D ⎯

“Statements
30E (1) A statement made by a specified person in compliance
with a requirement imposed by section 30B (1)(c) may not be
used in evidence against him in criminal proceedings.

(2) Subsection (1) does not apply on a prosecution for ⎯

(a) an offence under section 30D (3);

(b) perjury; or

(c) some other offence where, in giving evidence, a
specified person makes a statement inconsistent
with the statement mentioned in subsection (1).

(3) A statement may not be used by virtue of subsection
(2)(c) against a specified person unless —

(a) evidence relating to it is adduced; or

(b) a question relating to it is asked;

by or on behalf of the specified person in the proceedings arising
out of the prosecution.”.

Third Schedule amended
8 (1) The Third Schedule to the principal Act is amended by
inserting the following in its alphabetical order ⎯

“Any person registered under section 4 or 10 of the Insurance
Act 1978”.

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Fourth Schedule amended
9 (1) The Fourth Schedule to the principal Act is amended —

(a) by repealing the table of fees under the heading “Banks
and Deposit Companies Act 1999”, and substituting the
following —

“Banks and Deposit Companies Act 1999
(1) Application for a licence pursuant

to section 13(1) . . . . . . . . . . . . . . . . $20,000

(2) Annual fee payable pursuant to section 16 —

(a) where an institution falls in
band A . . . . . . . . . . . . . . . . . . . . $15,000

(b) where an institution falls in
band B . . . . . . . . . . . . . . . . . . . $100,000

(c) where an institution falls in
band C . . . . . . . . . . .. . . . . . . . $200,000

(3) For the purposes of paragraph (2), an institution
falls—

(a) in band A, if it has consolidated gross
assets not exceeding $500 million;

(b) in band B, if it has consolidated gross
assets exceeding $500 million but not
exceeding $2 billion;

(c) in band C, if it has consolidated gross
assets exceeding $2 billion.

(4) In this paragraph “consolidated gross assets”
does not include assets included within the
consolidated financial statements of a subsidiary
company of the institution which is separately licensed
under the Banks and Deposit Companies Act 1999.”;

(b) by repealing the table of fees under the heading
“Insurance Act 1978” and substituting the following—

“Insurance Act 1978
(1) Applying for registration as—

(a) an insurer under section 4(1) $140.00

(b) an insurance manager, broker or agent
under section 10 $140.00

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(c) an insurance saleman under section 10 $71.00

(2) Applying—

(a) to vary or delete any conditions
imposed on the Certificate of
Registration under section 4(3) $210.00

(b) to register as a different class of insurer
under section 4(6) $210.00

(c) to register as a long-term insurer under
section 4(6) $210.00

(d) to be granted an extension to the filing
deadline under section 17(4) $368.00

(e) to be exempted from the record keeping
requirements of section 18C(2) $210.00

(f) to file an affidavit prior to the
payment of dividends exceeding
25% of a Class 4 insurer's statutory
capital and surplus under
section 31B $210.00

(g) to receive approval for
an insurer to reduce total
statutory capital by 15% or
more under section 31C $210.00

(h) to be granted a direction under section
56 $210.00

(i) to be granted a direction under section
57A $1,313.00

(j) to receive Bermuda Monetary Authority
approval for an asset not appearing on
lines 1, 2, 3(a), 5(a), 9, 10, 11 and 12 as
required by the Insurance Accounts
Regulations 1980, to be treated as
“relevant assets” $210.00

(k) to receive Bermuda Monetary Authority
approval of letters of credit, guarantees
and any other instruments to be
treated as other fixed capital $210.00

(3) Registering as—

(a) an insurer—

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(i) non-resident insurance undertak-
ing under the Non-Resident
Insurance Undertakings Act 1967
(fees in subparagraphs (a)(ii) to (x)
of this item do not apply to these
undertakings)

$3,476.00
(ii) Class 1 insurer carrying on

general business $971.00

(iii) Class 2 insurer carrying on
general business $1,654.00

(iv) Class 3 insurer carrying on
general business $10,000.00

(v) Class 4 insurer carrying on
general business $210,000.00

(vi) Long-term insurer $10,000.00

(vii) Class 1 insurer carrying on both
general business and long-term
business $10,000.00

(viii) Class 2 insurer carrying on both
general business and long-term
business $10,000.00

(ix) Class 3 insurer carrying on both
general business and long-term
business $10,000.00

(x) Class 4 insurer carrying on both
general business and long-term
business $210,000.00

(b) an insurance manager, broker or agent
under section 10 $1,339.00

(c) an insurance salesman under section
10 $133.00

(4) Issuing any certificate under section 14(1)(c) $71.00

(5) Inspecting the register under section 14(1)(d) $9.00

(6) The furnishing by the Authority of any
document or copy of a document under section
14(1)(e)—

(a) for the first three pages or part thereof $6.00

(b) for each additional three pages or part
thereof $6.00

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(7) Annual fee under section 14(2) payable by—

(a) an insurer—

(i) non-resident insurance undertak-
ing under the Non-Resident
Insurance Undertakings Act 1967
(fees in subparagraphs (a)(ii) to (x)
of this item do not apply to these
undertakings) $3,476.00

(ii) Class 1 insurer carrying on
general business $971.00

(iii) Class 2 insurer carrying on
general business $1,654.00

(iv) Class 3 insurer carrying on
general business $10,000.00

(v) Class 4 insurer carrying on
general business $210,000.00

(vi) Long-term insurer $10,000.00

(vii) Class 1 insurer carrying on both
general business and long-term
business $10,000.00

(viii) Class 2 insurer carrying on both
general business and long-term
business $10,000.00

(ix) Class 3 insurer carrying on both
general business and long-term
business $10,000.00

(x) Class 4 insurer carrying on both
general business and long-term
business $210,000.00

(b) an insurance manager, broker or
agent under section 10 $1,339.00

(c) an insurance salesman under
section 10 $133.00”;

(c) by repealing paragraph (1) under the
heading “Investment Business Act
2003” and substituting the following —

“(1) Fee payable on an application
for a licence under section 16 $2,000.00”; and

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(d) by repealing paragraphs (3)(a) and (b)
under the heading “Investment
Business Act 2003” and substituting
the following—

“(a) has consolidated net assets not
exceeding $500 million $50,000.00

(b) has consolidated net assets
exceeding $500 million $200,000.00”.



(2) Notwithstanding the date of commencement of this section,
the annual fees prescribed by virtue of subsection (1) that are payable
pursuant to—

(a) section 16 of the Banks and Deposit Companies Act
1999;

(b) section 14(2) of the Insurance Act 1978; or

(c) section 19 (b) of the Investment Busines Act 2003

shall be the annual fees for the year 2008.

Consequential amendments
10 (1) The Companies Act 1981 is amended —

(a) by repealing Part XIVB; and

(b) by repealing paragraph (a) of the Ninth Schedule and
substituting the following —

“(a) operating a financial institution within the meaning
of section 1(1) of the Bermuda Monetary Authority
Act 1969 other than institutions that are
investment funds or persons registered under
section 4 or 10 of the Insurance Act 1978; or ”.

(2) The Insurance Act 1978 is amended—

(a) by repealing sections 51A to 51D;

(b) by repealing section 52B(3) and subsetting the
following—

“(3) Subsection (2) does not apply in relation to
disclosure to an authority other than the foreign
regulatory authority which has requested the
information pursuant to section 30A of the Bermuda
Monetary Authority Act 1969 (“the 1969 Act”), of
information obtained pursuant to the exercise of powers
under section 30B of the 1969 Act unless the Authority

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has taken into account the matters specified in section
30A (5) of that Act.”.

(3) Regulation 2 of the Bermuda Monetary Authority (Financial
Institutions)(Control) Regulations 1994 is amended in the definition of
“financial institution” by repealing paragraph (b) and substituting the
following—

“(b) investment funds; and

(c) a person registered under section 4 or section 10 of the
Insurance Act 1978.”.