The Bermuda Monetary Authority (BMA) has published its 2013 business plan stating that Bermuda will not apply Solvency II-type regime to captives. The business plan also highlights regulatory priorities and goals for the year ahead.
Jeremy Cox, BMA’s CEO, presented the plan to stakeholders at the authority’s annual meeting, he said: “We will work hard to ensure that Bermuda firms will continue to benefit from operating within a practical, risk-based regulatory and supervisory environment that fits the unique nature of Bermuda’s market.”
Cox definitively stated that Bermuda would not apply any Solvency II-type regime to the captive sector. He said that the BMA plans to introduce a risk return as part of consolidated annual filing for captives that they will submit electronically.
Cox said: “What the risk return embodies is something that allows the regulator to get that key risk information and I think it is something the industry will be quite happy to see in place given that they were volunteering so much of this information already.”
“This step, as well as the changes to our framework for the commercial sector, reflects our ability to take independent decisions on regulatory change at a pace that’s right for Bermuda and according to what makes sense for our diverse market, while taking into account achieving global recognition for our supervisory regimes.”
Cox also announced regulatory projects planned for 2013 that will support new business development opportunities in Bermuda, including a new supervisory regime for Corporate Service Providers (CSP).
He said: “Under the CSP regime the authority will license and supervise professional service providers in Bermuda that act as agents for forming corporate entities, as well as providing other corporate services.”
The Corporate Service Providers Business Act came into effect on January 1.
