QUO FA T A F U E R N T BERMUDA 2014 : 35 TABLE OF CONTENTS 1 2 3 4 5 Citation Inserts sections 20C to 20E Repeals and replaces Fourth Schedule Consequential amendments Commencement SCHEDULE Amendments to the Banks and Deposit Companies (Fees) Act 1975 WHEREAS it is expedient to amend the Bermuda Monetary Authority Act 1969 so as to provide additional enforcement powers for the regulation of money service businesses; and to revise provisions of the Fourth Schedule to the Act and make consequential amendments for the purpose of increasing the fees applicable to the entities regulated by the Bermuda Monetary Authority; 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, which amends the Bermuda Monetary Authority Act 1969 (the principal Act ), may be cited as the Bermuda Monetary Authority Amendment Act 2014. Inserts sections 20C to 20E 2 The principal Act is amended by inserting after section 20B the following sections 1
Application of sections 20D and 20E 20C The application of sections 20D and 20E shall only be with respect to the regulation of money service businesses under this Part. Right of entry to obtain information and documents 20D (1) Any officer, servant or agent of the Authority may, on producing if required evidence of his authority, enter any premises occupied by any person upon whom a requirement has been made under section 22 for the purpose of obtaining there such information or documents, but the Authority shall not authorize any person to act under this section unless it has reasonable cause to believe that if notification of its intended entry to obtain information and documents were served it would not be complied with or that any documents to which it would relate would be removed, tampered with or destroyed. (2) Any person who intentionally obstructs a person exercising powers conferred by this section shall be guilty of an offence and liable on summary conviction to a fine of $10,000 or to imprisonment for six months or to both. Investigations on behalf of the Authority 20E (1) If it appears to the Authority desirable to do so in the interests of the clients or potential clients of a licensed company the Authority may appoint one or more competent persons to investigate and report to the Authority on (a) the nature, conduct or state of the licensed company s business or any particular aspect of it; or the ownership or control of the licensed company, and the Authority shall give written notice of any such appointment to the licensed company concerned. (2) If a person appointed under subsection (1) thinks it necessary for the purposes of the investigation he is appointed to carry out, he may also investigate the business of a person who is or has at any relevant time been a member of the group of which the person under investigation is part, or a partnership of which the person under investigation is a member. (3) Where a person appointed under subsection (1) decides to investigate the business of any person referred to in subsection (2), he shall give that person written notice to that effect. (4) It shall be the duty of every person who is or was a controller, officer, employee, agent, banker, auditor, accountant or barrister and attorney of a licensed company which is under investigation by virtue of subsection (1) or a person who is under investigation under subsection (2) (a) to produce to the person appointed under subsection (1), within such time and at such place as he may require, such documents, or documents of such description, as may be specified, being 2
documents the production of which may be reasonably required for the investigation, which are in his custody or power; to attend before the person so appointed at such time and place as he may require and answer questions relevant to the investigation as such person may require; and otherwise to give the person all assistance in connection with the investigation which he is reasonably able to give, and the person investigating may take copies of or extracts from any documents produced to him under paragraph (a). (5) For the purpose of exercising his powers under this section, a person appointed under subsection (1) may enter any premises occupied by a licensed company which is being investigated by him under this section; but he shall not do so without prior notice in writing. (6) A person exercising powers by virtue of an appointment under this section shall, if so required, produce evidence of his authority. (7) Unless the Authority otherwise directs, the licensed company under investigation shall pay to the Authority all expenses of, and incidental to, the investigation. (8) (c) Any person who (a) (c) (d) without reasonable excuse fails to produce any documents which it is his duty to produce under subsection (4); without reasonable excuse fails to attend before the persons appointed under subsection (1) when required to do so; without reasonable excuse fails to answer any question which is put to him by persons so appointed with respect to a licensed company which is under investigation or a person who is being investigated by virtue of subsection (2); or intentionally obstructs a person in the exercise of the powers conferred by subsection (5), shall be guilty of an offence and liable on summary conviction to a fine of $10,000 or to imprisonment for six months or to both. (9) A statement made by a person in compliance with a requirement imposed by virtue of this section shall not be used in evidence against him in criminal proceedings. (10) Nothing in this section shall require the disclosure or production by a person of information or documents which he would be entitled to refuse to disclose or produce on the grounds of legal professional privilege in proceedings in Bermuda.. 3
Repeals and replaces Fourth Schedule 3 The principal Act is amended by repealing the Fourth Schedule and substituting the following Banks and Deposit Companies Act 1999 FOURTH SCHEDULE (1) Application for a licence pursuant to section 13(1) - $22,712 (section 20B ) (2) (a) (c) (3) (a) (c) Annual fee pursuant to section 16 where an institution falls in band A... $18,746 where an institution falls in band B... $124,939 where an institution falls in band C... $249,827 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 1999. Bermuda Monetary Authority Act 1969 (1) application for a licence to carry on a money service business pursuant to regulation 7(1)(a) of the Money Service Business Regulations 2007...$5,150 (2) annual fee pursuant to regulation 7(1) of the Money Service Business Regulations 2007...$5,150 Corporate Service Provider Business Act 2012 (1) (2) Applying for a license under section 10...$206 Inspection of a register pursuant to section 14...$26 4
(3) Annual fee for granting a licence under section 13 is $21 per entity the licensed undertaking was serving in the year ending 31 December of the preceding year. Insurance Act 1978 (1) Applying for registration as (a) an insurer under section 4(1) an insurance manager, broker or agent under $325 section 10 (c) an insurance salesman under section 10 $77 (2) Applying (a) to vary or delete any conditions imposed on the Certificate of Registration under section 4(3) b to register as a different class of insurer under section 4(6) (c) (i) to be granted an extension to the filing deadline under section 17(4) for Class 3A, Class 3B, Class C, D and E insurers d to be exempted from the record keeping requirements of section 18C(2) (e) to notify new or increased shareholder control under section 30D (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 (g) to receive approval for an insurer to reduce total statutory capital by 15% or more under section 31C (h) to be granted a direction under section 56 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 18B to include opinion of loss reserve specialist (ii) modifying of accounting provisions under sections 15 to 18 and regulations (iii) modifying margin of solvency for general business under section 33 and regulations $1,000 (iv) modifying statutory financial returns under sections 15 to 18 and regulations (i) to be granted a direction under section 57A $1,495 5
(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 (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 section 41(1)(a) (m) application for approval of internal capital model made under the provisions of a Rule made under section 6A (Note: this paragraph is intended to refer to the pre-application process) (n) subject to paragraph 2A, application for review and approval of an internal capital model made under the provision of a Rule made under section 6A - a maximum of (o) annual fee for the monitoring of an approved internal capital model made under the provisions of a Rule made under section 6A (p) application for post approval of an internal capital model made under the provisions of a Rule made under section 6A (Note: this charge is intended to apply to each major change that is being considered) (q) application for exemption from filing CSSA on the account that the GSSA covers the legal entity and that there is a centralized risk management in the group, under section 6A (r) application for exemption from prudential standards under section 6C (s) application for exemption from Cat Return under section 6C (t) application for modifications of applicable $41,200 $160,000 $15,450 $15,450 prudential standards under section 6C (u) eligible capital application under section 6C (v) adjustment to the enhanced capital requirement and/or available statutory capital and surplus by changing certain capital factor charges in the BSCR under Section 6D (va) subsequent renewal of adjustment to the enhanced capital requirement and/or $5,970 6
available statutory capital and surplus (where there are no major changes from the initial application) by changing certain capital factor charges in the BSCR under Section 6D (w) application for BSCR filing extensions, under section 6C (x) application for quarterly returns extensions, under section 6C (2A) Section 14(6) (which allows the Authority to reduce the annual fee depending on the nature and scale of operations of an insurer and the complexity of its business) shall apply with the necessary modifications to the application fee for review and approval of an internal capital model under paragraph 2(n) above. (3) Registering as (a) an insurer (i) non-resident insurance undertaking under the Non-Resident Insurance Undertakings Act 1967 (fees in subparagraphs (a)(ii) to (x) of this item do not apply to these undertakings) $1,500 $1,000 $3,760 (ii) Class 1 insurer carrying on general business $1,250 (iii) Class 2 insurer carrying on general business $2,800 (iv) Class 3 insurer carrying on general business where gross premium written is expected to not exceed $5 million $12,360 exceed $5 million but not exceed $20 million $13,750 exceed $20 million but not exceed $35 million $15,660 exceed $35 million $18,000 (iva) Class 3A insurer carrying on general business where gross premium written is expected to not exceed $5 million $19,570 exceed $5 million but not exceed $20 million $23,175 exceed $20 million but not exceed $35 million $26,780 exceed $35 million $30,900 or the insurer qualifies as a Class 3A affiliated reinsurer $19,570 7
(ivb) Class 3B insurer carrying on general business where gross premium is expected to not exceed $150 million $185,400 exceed $150 million but not exceed $350 million $206,000 exceed $350 million but not exceed $2 billion $237,415 exceed $2 billion $267,800 (v) Class 4 insurer carrying on general business where gross premium written is expected to not exceed $150 million $185,400 exceed $150 million but not exceed $350 million $206,000 exceed $350 million but not exceed $2 billion $237,415 exceed $2 billion $267,800 (vi) Special Purpose insurers $6,180 (vii) Long-Term Class A $10,815 (viii) Long-Term Class B $10,815 (ix) Long-Term Class C $20,600 (x) Long-Term Class D $41,200 (xi) Long-Term Class E $61,800 an insurance manager, broker or agent under $1,449 section 10 (c) an insurance salesman under section 10 $144 (4) Issuing any certificate under section 14(1)(c) (5) Inspecting the register under section 14(1)(d) $26 (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 $26 for each additional three pages or part thereof $6 (7) Annual fee under section 14(2) payable by (a) an insurer (i) non-resident insurance undertaking under the Non-Resident Insurance Undertakings Act 1967 (fees in subparagraphs (a)(ii) to (x) of this item do not apply to these undertakings) (ii) Class 1 insurer carrying on general business (iii) Class 2 insurer carrying on general business $3,760 $1,250 $2,800 8
(iv) Class 3 insurer carrying on general business where gross premium written is expected to not exceed $5 million $12,360 exceed $5 million but not exceed $20 million $13,750 exceed $20 million but not exceed $35 million $15,660 exceed $35 million $18,000 (iva) Class 3A insurer carrying on general business where gross premium written is expected to not exceed $5 million $19,570 exceed $5 million but not exceed $20 million $23,175 exceed $20 million but not exceed $35 million $26,780 exceed $35 million $30,900 or the insurer qualifies as a Class 3A affiliated reinsurer $19,570 (ivb) Class 3B insurer carrying on general business where gross premium written is expected to not exceed $150 million $185,400 exceed $150 million but not exceed $350 million $206,000 exceed $350 million but not exceed $2 billion $237,415 exceed $2 billion $267,800 (v) Class 4 insurer carrying on general business where gross premium written is expected to not exceed $150 million $185,400 exceed $150 million but not exceed $350 million $206,000 exceed $350 million but not exceed $237,415 $2 billion exceed $2 billion $267,800 (vi) Special Purpose insurers $6,180 (vii) Long-Term- Class A $10,815 (viii) Long-Term- Class B $10,815 (ix) Long-Term- Class C $20,600 (x) Long-Term- Class D $41,200 (xi) Long-Term- Class E $61,800 an insurance manager, broker or agent under section 10 $1,449 9
(c) an insurance salesman under section 10 (7A) Supplementary fee to be paid by insurer whose business includes domestic insurance business in addition to the fee payable for its class of business under paragraph (7)(a) (8) Annual fee under section 27B payable by a designated insurer for a group $144 $25,750 $154,500 Investment Business Act 2003 (1) Application fee for a licence pursuant to section 16 $2,266 (2) Annual licence fee pursuant to section 19(1) (a) where the investment provider carries on (i) an investment activity of a kind specified in paragraph 2 of Part 2 of the First Schedule to the Act in connection $2,163 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 $2,163 First Schedule to the Act, or (iii) an investment activity not falling within (i) and (ii) above $2,163 where the investment provider carries on an investment activity of a kind specified in paragraphs 1, 2 and 3 of Part 2 of the First $5,408 Schedule to the Act but is not licensed to hold client assets (c) where the investment provider carries on an investment activity of a kind specified in Part 2 of the First Schedule to the Act and $10,815 is licensed to hold client assets (3) Annual licence fee payable pursuant to section 19(1) where an investment provider falls within paragraph (2)(a), 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 (a) has consolidated net assets not exceeding $500 million $62,470 has consolidated net assets exceeding $500 million $249,827 Investment Funds Act 2006 (1) Application fee authorisation (all funds) $855 (2) Reclassification fee (all funds) $855 10
(3) Annual fee - standard fund $1,535 (4) Annual fee - administered fund $968 (5) Annual fee - institutional fund $968 (6) Application fee - exempted funds $567 (7) Annual fee - exempted funds $680 (8) Initial filing fee pursuant to section 17(1)(ba) in relation to a Class A Exempt Fund $1,545 (9) Application fee pursuant to section 17(1)(bb) in relation to a Class B Exempt Fund $1,030 (10) Annual fee pursuant to section 17(1)(c) in relation to a Class A Exempt Fund $1,545 (11) Annual fee pursuant to section 17(1)(c) in relation to a Class $1,030 B Exempt Fund (12) Application fee: fund administrator licence $8,518 (13) Annual fee: (fund administrator) $9,373 (14) Transaction fee: all section 25 changes and notifications and 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) $108 (2) Annual fee pursuant to section 14(2) $850 Credit Unions Act 2010 (1) Grant of a licence fee under section 13(2) $2,500 (2) Annual fee pursuant to section 13(1) $2,500 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) a limited trust licence $567 an unlimited trust licence $5,665 (2) Annual fee under section 14(1) (a) for a limited trust licence $1,133 for an unlimited trust licence (i) (ii) where the gross income of the licensed company, as reflected in the latest audited statements, does not exceed $2 million $14,000 where the gross income of the licensed company, as reflected in the latest audited $23,000 $258 11
(iii) statements, exceeds $2 million but does not exceed $4 million where the gross income of the licensed company, as reflected in the latest audited statements, exceeds $4 million. $38,000 Consequential amendments 4 The Schedule, which amends the Banks and Deposit Companies (Fees) Act 1975, has effect. Commencement 5 This Act shall come into operation on 1 January 2015. 12
SCHEDULE (Section 4) AMENDMENTS TO THE BANKS AND DEPOSIT COMPANIES (FEES) ACT 1975 Repeals and replaces Second Schedule 1 The Second Schedule to the Banks and Deposit Companies (Fees) Act 1975 is repealed and replaced as follows SECOND SCHEDULE ANNUAL FEES (Sections 3 and 3A) (a) (c) PART I Banks Where the bank has consolidated gross assets (in all currencies) of less than $2 billion in value Where the bank has consolidated gross assets (in all currencies) of $2 billion but not exceeding $5 billion in value Where the bank has consolidated gross assets (in all currencies) of $5 billion or more PART II Deposit Companies $270,375 $1,487,063 $1,622,250 Every deposit company $10,815. [Assent Date: 22 December 2014] [Operative Date: 01 January 2015] 13