BERMUDA BERMUDA MONETARY AUTHORITY (REGULATORY FEES) AMENDMENT ACT : 58

Transcription

1 QUO FA T A F U E R N T BERMUDA BERMUDA MONETARY AUTHORITY (REGULATORY FEES) AMENDMENT ACT : 58 TABLE OF CONTENTS Citation Amends section 14(3) of the Insurance Act 1978 Inserts sections 14 (6) through (8) of the Insurance Act 1978 Amends section 27B of the Insurance Act 1978 Amends section 16 of the Banks and Deposit Companies Act 1999 Amends section 14 of the Trusts (Regulation of Trust Business) Act 2001 Repeals and replaces section 19 of the Investment Business Act 2003 Amends section 17 of the Investment Funds Act 2006 Repeals and replaces section 45 of the Investment Funds Act 2006 Revokes and replaces regulation 7 of the Money Service Business Regulations 2007 Repeals and replaces the Fourth Schedule to the Bermuda Monetary Authority Act 1969 Repeals and replaces the Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 Commencement WHEREAS it is expedient to amend the Bermuda Monetary Authority Act 1969, the Banks and Deposit Companies (Fees) Act 1975, the Insurance Act 1978, the Banks and Deposit Companies Act 1999, the Trusts (Regulation of Trust Business) Act 2001, the Investment Business Act 2003, the Investment Funds Act 2006, and the Money Service Business Regulations 2007 in relation to regulatory fees charged by the Bermuda Monetary Authority; 1

2 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: Citation 1 This Act may be cited as the Bermuda Monetary Authority (Regulatory Fees) Amendment Act. Amends section 14(3) of the Insurance Act Section 14(3) of the Insurance Act 1978 is repealed and replaced as follows (3) Where a registered person fails to pay a prescribed fee, as provided in subsection (1) or (2), it shall pay in addition to such fee a late penalty fee of an amount equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (3A) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction.. Inserts sections 14 (6) through (8) of the Insurance Act Section 14 of the Insurance Act 1978 is amended by inserting, immediately after subsection (5), the following (6) The Authority, having regard to the nature and scale of operations of an insurer and the complexity of its may direct that the annual fee that is otherwise due and payable by or under subsection (2) be reduced by such amount as the Authority considers appropriate in relation to that insurer. (7) The Authority shall serve notice in writing on the insurer directing that the fee otherwise payable by or under subsection (2) be payable at the reduced rate specified in the direction and the year when it is to take effect. (8) The Authority may at any time revoke a direction given under subsection (6), where it is satisfied that there has been a material change in the nature and scale of operations of an insurer or in the complexity of its. (9) The Authority shall serve notice in writing on the insurer concerned notifying it of its decision to revoke the direction given under subsection (6) and the year from which the full fee becomes payable. Amends section 27B of the Insurance Act Section 27B of the Insurance Act 1978 is amended by inserting, immediately after subsection (10), the following (11) There shall be payable by a designated insurer such annual fee, as may be prescribed under the Bermuda Monetary Authority Act 1969, in respect of every insurance group registered under this section. 2

3 (12) The first annual fee shall be payable within 30 days of the registration of the insurance group. (13) The annual fee for the subsequent years shall be payable on or before 31 March in every year following the year in which the insurance group was registered.. Amends section 16 of the Banks and Deposit Companies Act Section 16 of the Banks and Deposit Companies Act 1999 is amended in subsection (1), by deleting the words 30 April and substituting them with 31 March ; and by repealing subsection (3) and replacing it as follows (3) If an institution fails to pay the prescribed fee as provided in subsection (1), it shall pay in addition to such fee a late penalty fee of an amount equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (4) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction.. Amends section 14 of the Trusts (Regulation of Trust Business) Act Section 14 of the Trusts (Regulation of Trust Business) Act 2001 is amended, in subsection (1), by deleting the words 30 April and replacing them with 31 March. Repeals and replaces section 19 of the Investment Business Act Section 19 of the Investment Business Act 2003 is repealed and replaced as follows Fees 19 (1) An investment provider shall pay such fees as may be prescribed under the Bermuda Monetary Authority Act 1969 on the grant of a licence; on or before 31 March in every year after the year in which the licence was granted, and different fees may be prescribed having regard to the scope and nature of the permitted to be conducted under the licence. (2) If an investment provider fails to pay the prescribed fee as provided in subsection (1), it shall pay in addition to such fee a late penalty fee of an amount equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (3) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction.. 3

4 Amends section 17 of the Investment Funds Act Section 17 of the Investment Funds Act 2006 is amended in subsection (1)(c), by deleting the words 30 April and substituting them with 31 March ; and by inserting, immediately after subsection (2), the following (3) If an operator of a fund fails to pay the prescribed fee as provided in subsection (1), it shall pay in addition to such fee a late penalty fee of an amount equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (4) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction.. Repeals and replaces section 45 of the Investment Funds Act Section 45 of the Investment Funds Act 2006 is repealed and replaced as follows Fees 45 (1) A fund administrator shall pay such fees as may be prescribed under the Bermuda Monetary Authority Act 1969 on the grant of a licence; and on or before 31 March in every year after the year in which the licence was granted. (2) If a fund administrator fails to pay the prescribed fee as provided in subsection (1), it shall pay in addition to such fee a late penalty fee of an amount equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (3) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction. Revokes and replaces regulation 7 of the Money Service Business Regulations Regulation 7 of the Money Service Business Regulations 2007 is revoked and replaced with the following 7 (1) A licensed company shall pay such fees as may be prescribed under the Bermuda Monetary Authority Act 1969 on the grant of the licence; and on or before 31 March in every year after the year in which the licence was granted. (2) If a licensed company fails to pay the prescribed fee as provided in subsection (1), it shall pay in addition to such fee a late penalty fee of an amount 4

5 equal to ten per cent of the fee due for every month or part thereof during which the fee remains unpaid. (3) The Authority may recover any fee and any penalty fee as a civil debt owing to it in any court of competent jurisdiction.. Repeals and replaces the Fourth Schedule to the Bermuda Monetary Authority Act The Fourth Schedule to the Bermuda Monetary Authority Act 1969 is repealed and replaced with the following Banks and Deposit Companies Act 1999 FOURTH SCHEDULE (1) Application for a licence pursuant to section 13(1)- $22,050 (section 20B ) (2) (c) (3) (c) Annual fee pursuant to section 16 where an institution falls in band A... $18,200 where an institution falls in band B... $121,300 where an institution falls in band C... $242,550 For the purposes of paragraph (2), an institution falls in band A, if it has consolidated gross assets not exceeding $500 million; in band B, if it has consolidated gross assets exceeding $500 million but not exceeding $2 billion; 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 Bermuda Monetary Authority Act 1969 (1) (2) [repealed] [repealed] (3) application for a licence to carry on a money service pursuant to regulation 7(1) of the Money Service Business Regulations $5,000 5

6 (4) annual fee pursuant to regulation 7(1) of the Money Service Business Regulations $5,000 Insurance Act 1978 (1) Applying for registration as an insurer under section 4(1) $580 an insurance manager, broker or agent under $315 section 10 (c) an insurance salesman under section 10 $75 (2) Applying to vary or delete any conditions imposed on $390 the Certificate of Registration under section 4(3) to register as a different class of insurer under $390 section 4(6) (c) [repealed by 2008:46] (d) to be granted an extension to the filing $580 deadline under section 17(4) (e) to be exempted from the record keeping $390 requirements of section 18C(2) (ea) to notify new or increased shareholder $390 control under section 30D (f) to file an affidavit prior to the $390 payment of dividends exceeding 25% of a Class 4 insurer s statutory capital and surplus under section 31B (g) to receive approval for $580 an insurer to reduce total statutory capital by 15% or more under section 31C (h) to be granted a direction under section 56 $390 other than those mentioned in paragraph (ha) (ha) to be granted a direction under section 56, in respect of (i) exemption from requirement of section $390 18B to include opinion of loss reserve specialist opinion (ii) modifying of accounting provisions under $580 sections 15 to 18 and regulations (iii) modifying margin of solvency for general $390 under section 33 and regulations (iv) modifying statutory financial returns $390 under sections 15 to 18 and regulations (i) to be granted a direction under section 57A $1,450 6

7 (j) to receive Bermuda Monetary Authority approval for an asset not appearing on lines 1, 2, 3, 5, 9, 10, 11 and 12 as required by the Insurance Accounts Regulations 1980, to be treated as relevant assets (k) to receive Bermuda Monetary Authority approval of letters of credit, guarantees and any other instruments to be treated as other fixed capital (l) application for cancellation of registration under s.41(1) (m) application for approval of internal model made under the provisions of an Order made under section 6A (3) Registering as an insurer (i) non-resident insurance undertaking under the Non-Resident Insurance Undertakings Act 1967 (fees in subparagraphs (ii) to (x) of this item do not apply to these undertakings) $580 $390 $390 $52,500 $3,650 (ii) Class 1 insurer carrying on general $971 (iii) Class 2 insurer carrying on general $2,200 (iv) Class 3 insurer carrying on general $12,000 (iva) Class 3A insurer carrying on $30,000 general (ivb) Class 3B insurer carrying on general where gross premium is expected to not exceed $150 million $180,000 exceed $150 million but does not $200,000 exceed $350 million exceed $350 million but does not $230,500 exceed $2 billion exceeds $2 billion $260,000 (v) Class 4 insurer carrying on general where gross premium written is expected to not exceed $150 million $180,000 exceed $150 million but does not $200,000 exceed $350 million exceed $350 million but does not $230,500 exceed $2 billion 7

8 exceed $2 billion $260,000 (vi) Special Purpose insurers $11,600 (vii) Long-Term Class A $10,500 (viii) Long-Term Class B $10,500 (ix) Long-Term Commercial insurers Class C insurer, if classified, otherwise total assets of less than $250 million $20,000 Class D insurer, if classified, otherwise total assets equal to or greater than $250 million but less than $500 million $40,000 Class E insurer, if classified, otherwise total assets greater than $500 million $60,000 an insurance manager, broker or agent under $1,406 section 10 (c) an insurance salesman under section 10 $140 (4) Issuing any certificate under section 14(1)(c) $580 (5) Inspecting the register under section 14(1)(d) $25 (6) The furnishing by the Authority of any document or copy of a document under section 14(1)(e) for the first three pages or part thereof $25 for each additional three pages or part thereof $6 (7) Annual fee under section 14(2) payable by an insurer (i) non-resident insurance undertaking under the Non-Resident Insurance Undertakings Act 1967 (fees in subparagraphs (ii) to (x) of this item do not apply to these undertakings) $3,650 (ii) Class 1 insurer carrying on general $971 (iii) Class 2 insurer carrying on general $2,200 (iv) Class 3 insurer carrying on general $12,000 (iva) Class 3A insurer carrying on $30,000 general (ivb) Class 3B or Class 4 insurer carrying on general where gross premium written in the year preceding the year of assessment did not exceed $150 million $180,000 exceeded $150 million but did not exceed $350 million $200,000 8

9 exceeded $350 million but did not exceed $2 billion $230,500 exceeded $2 billion $260,000 (v) Special Purpose insurers $11,600 (vi) Long-Term- Class A $10,500 (vii) Long-Term- Class B $10,500 (viii) Long-Term- Commercial insurers Class C insurer, if classified, otherwise total assets less than $250 million $20,000 Class D insurer, if classified, otherwise total equal to or greater than $250 million but less than $500 million $40,000 Class E insurer, if classified, otherwise with total assets greater than $500 million $60,000 an insurance manager, broker or agent $1,406 under section 10 (c) an insurance salesman under section 10 $140 (7aa)Supplementary fee to be paid by insurer $25,000 whose includes domestic insurance in addition to the fee payable for its class of under paragraph (7) (8) Annual fee under section 27B payable by a $150,000 designated insurer for a group [Fee in paragraph (7aa) contained a typographical error when enacted and has been corrected to read $25,000 under the powers of the Computerization and Revision of Laws Act 1989 s. 11J] Investment Business Act 2003 (1) Application fee for a licence pursuant to section 16 $2,200 (2) Annual licence fee pursuant to section 19(1) where the investment provider carries on $2,100 (i) an investment activity of a kind specified in paragraph 2 of Part 2 of the First Schedule to the Act in connection with shares or units in a collective investment scheme; (ii) an investment activity of a kind specified in paragraph 4 of Part 2 of the First Schedule to the Act; or (iii) an investment activity falling within (i) and (ii) above where the investment provider carries on an investment activity of a kind specified in 9

10 paragraphs 1, 2 and 3 of Part 2 of the First $5,250 Schedule to the Act but is not licensed to hold client assets (c) where the investment provider carries on $10,500 an investment activity of a kind specified in Part 2 of the First Schedule to the Act and is licensed to hold client assets (3) Annual licence fee payable pursuant to section 19(1) where an investment provider falls within paragraph (2), or (c) and is part of a group which is subject to consolidated supervision by the Authority as home regulator under the Investment Business Act 2003, and that group has consolidated net assets not exceeding $60,650 $500 million has consolidated net assets exceeding $500 million $242,550 Investment Funds Act 2006 (1) Application fee authorisation (all funds) $830 (2) Reclassification fee (all funds) $830 (3) Annual fee - standard fund $1,490 (4) Annual fee - administered fund $940 (5) Annual fee - institutional fund $940 (6) Application fee - exempted funds $550 (7) Annual fee - exempted funds $660 (8) Application fee - fund administrator s licence $8,270 (9) Annual fee - fund administrator $9,100 (10) Transaction fee: all section 25 changes and notifications and $250 section 6 notifications Proceeds of Crime (Anti-Money Laundering and Anti-Terrorist Financing Supervision and Enforcement) Act 2008 (1) Application fee under section 14(1) $105 (2) Annual fee pursuant to section 14(2) $825 Trusts (Regulation of Trust Business) Act 2001 (1) Application for a licence under section 11(6)(d) where the application is in respect of a limited trust licence $550 10

11 an unlimited trust licence $5,500 (2 ) Annual fee under section 14(1) for a limited trust licence $1,100 for an unlimited trust licence (i) (ii) (iii) where a licensed company employs, or otherwise engages the services of, less than five persons $12,130 where a licensed company employs, or otherwise engages the services of, five or more persons but less than ten $21,225 where a licensed company employs, or otherwise engages the services of, ten or more persons $36,400 Repeals and replaces the Second Schedule to the Banks and Deposit Companies (Fees) Act The Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 is repealed and replaced with the following SECOND SCHEDULE ANNUAL FEES (Sections 3 and 3A) PART I Banks (c) Where the bank has consolidated gross assets (in all currencies) of less than $2,000,000,000 in value $262,500 Where the bank has consolidated gross assets (in all currencies) of $2,000,000,000 but less than $5,000,000,000 in value $1,443,750 Where the bank has consolidated gross assets (in all currencies) of $5,000,000,000 or more $1,575,000 PART II Deposit Companies Every deposit company $10,500. Commencement 13 This Act shall come into operation on 1 January [Assent Date: 22 December ] [Operative Date: 01 January 2011] 11