Insurance sector codes in the Bermuda Monetary Authority Act 1969 (BMA Act) have been revised as part of the passing of a bill to amend the BMA Act by adding a principal object to cover matters related to the conduct of business by financial institutions.
The BMA Act is the statute that established the Bermuda Monetary Authority (BMA) and that guides its functions and powers. Bermuda’s Governor provided assent to the bill.
The passing of this amendment provides BMA with the express mandate and powers to provide a new avenue of protection for customers using products and services provided by Bermuda’s regulated financial services providers.
This amendment will expand the BMA’s regulatory remit to encompass the oversight of the conduct of business by financial institutions with the aim of promoting fair outcomes for customers.
BMA’s approach will now include requiring greater transparency on the part of financial institutions, as well as the use of effective policies, procedures and internal structures to treat customers fairly and to handle customers’ complaints through appropriate mechanisms.
Resolution of individual customer complaints will remain outside of the Authority’s regulatory remit, the Authority noted.
This amendment of the BMA Act marks a key milestone for the Authority’s customer protection strategy, demonstrating the jurisdiction’s commitment to the highest financial services standards through enhancing the Authority’s mandate with the aim of promoting fair outcomes for customers of Bermuda’s financial services providers.Craig Swan, the Authority’s Chief Executive Officer
The regime will commence with issuing new or revised codes covering the conduct of business to each financial services sector. These new or revised sectoral codes will be issued on a phased basis and will allow for an appropriate transition period to ensure compliance.
The revised insurance sector code and its effective date will be communicated by the Authority in due course.