Bermuda’s Solvency II bifurcation was “definitely a success”, according to Jeremy Cox, CEO of the Bermuda Monetary Authority (BMA).
Speaking on a panel at the Bermuda Captive Conference, Cox suggested that, since the implementation of Solvency II, the jurisdiction has had to recalibrate regulation and supervision, which has not just changed things in the commercial sector, but also in the captive sector.
He said: “I would say that we have done the best possible job of standing up and defending the number one pillar of our brand, by ensuring we have a credible regulatory and supervisory framework.”
Grainne Richmond, vice president of Dyna Management Services, noted that after the implementation the island saw an uptick in business coming into the captive space, whether that was because of Solvency II or not, it “reinforced” the captive industry.
Cox explained: “We have to look out and see what is going on in the rest of the world, there are so many things, if we were to ignore the new initiatives and just continue what we always did I think Bermuda would put itself in a position where it is uncompetitive.”
“I think there are some jurisdictions that have chosen to do that and those jurisdictions, in my view, five years from now I highly doubt that they will have the same types of markets that they have today.”
He added: “As [Bermuda] continues to build its credibility brand, I think the one thing I would add is that we have to remember what has made us successful.”
European domiciles have also commented on the success of Bermuda’s Solvency II bifurcation.
Last week Cox attended a meeting in Brussels with European regulators and industry representatives.
He said: “At the end of discussions, two or three people came up to me and said they wanted to meet me, because what Bermuda achieved in terms of Solvency II equivalence was phenomenal."
Cox also suggested that Bermuda is working to address further regulatory requirements and assessments that are in the pipeline.
He said: “It was a team effort to make this happen, and what is important about this process is that we do one thing very well when it comes to this industry, and that is keeping politics mostly out of it, which is a part of how we are able to get this done.”
Jamahl Simmons, minister of economic development and tourism, also revealed that Parliament was sitting earlier than normal to get some “important legislation” approved to ensure assessment requirements are addressed.
He commented: “The beneficial ownership bill will go to parliament in two or three weeks. There’s also the anti-money laundering bill. There are a number of things we have in the pipeline.”
“We are aware of the need to get this done. We have established a cabinet sub-committee that is biweekly, and that is updating on where everybody is and what we need to do to stay ahead of the curve.”
Other international challenges facing the island include an assessment from the Organisation of Economic Co-operation and Development (OECD), the EU’s Code of Conduct and the Caribbean Financial Action Task Force review.
Cox told attendees: “The minister is correct when he talks of staying ahead of the curve and making sure we are performing well in these assessments—and not just performing well, but performing above our peers. It’s critical to our reputation and relationships with the regulatory community.”