Financial Crime World

Compliance Requirements for Financial Advisors in Bermuda

The Bermuda Monetary Authority has introduced a revised investment business framework, effective as of July 27, 2022. This new framework aims to ensure that financial advisors operating in or from Bermuda comply with specific requirements.

Licensed and Registered Investment Providers

Financial advisors licensed under section 17 of the Investment Business Act 2003 (IBA) or registered under section 17B of the IBA must adhere to certain standards, including:

  • Maintaining fit and proper controllers and officers
  • Conducting business in a prudent manner
  • Complying with anti-money laundering and anti-terrorist financing laws
  • Adhering to codes of conduct and practice issued under section 10 of the IBA
  • Meeting minimum net assets or additional capital requirements
  • Maintaining adequate accounting and other records
  • Ensuring consolidated supervision (where applicable)
  • Demonstrating integrity and skill

Reporting Requirements

Financial advisors must submit various reports to the Bermuda Monetary Authority, including:

Annual Reports

  • Annual return (Schedule I to the Investment Business (Statutory Returns) Rules)
  • Annual accounts or financial statements (must be audited if holding client money)

Quarterly Reports

  • Quarterly return (Schedule II to the Investment Business (Statutory Returns) Rules), including a quarterly financial statement and liquidity analysis
  • Prudential Information Return (PIR) (only where required by the Authority to maintain additional capital determined by the risk-based methodology)
  • Supplementary Quarterly Reporting Form: Contracts for Differences (CFD) with Retail Clients (Schedule II to the Investment Business (Statutory Returns) Rules)

Other Reports

  • Certificate of compliance (Appendix 5)
  • Notification of new or increased control
  • Notification of change of controller or officer

Failure to comply with these regulations may result in penalties and/or sanctions. The Bermuda Monetary Authority is responsible for enforcing the investment business framework and ensuring that financial advisors operating in or from Bermuda are in compliance.

Contact Information:

Bermuda Monetary Authority BMA House, 43 Victoria Street, Hamilton HM 12, Bermuda P.O. Box HM 2447, Hamilton HM JX, Bermuda Tel: (441) 295-5278 Fax: (441) 292-7471 Email: enquiries@bma.bm Website: www.bma.bm