Regulators

Bermuda Monetary Authority (BMA)

The Bermuda Monetary Authority, also known as the Bermuda Monetary Authority, whose full English name is Bermuda Monetary Authority, or BMA for short, is responsible f...

Forex Regulatory Tips

The Bermuda Monetary Authority (BMA) supervises foreign exchange margin business, which is a type of CFDs.
CFD Definition:
Rights, based on:
(a) Contracts for Difference; or
(b) Any other contract that achieves profit or avoids loss by reference to fluctuations in the following investment targets:
(i) the value or price of any property; or
(ii) indices or other factors for this purpose in the contract;
Does not include contracts where the parties intend to make a profit or avoid a loss by delivering any property covered by the contract.

Organization Profile

Institutional nature
Government agencies
Organization Introduction
The Bermuda Monetary Authority, also known as the Bermuda Monetary Authority, whose full English name is Bermuda Monetary Authority, or BMA for short, is responsible for regulating the financial services industry in Bermuda.
The Bermuda Monetary Authority (BMA) was established in 1969 to regulate financial institutions operating within the jurisdiction. It is also responsible for issuing the national currency within Bermuda, managing foreign exchange transactions, assisting other agencies in preventing financial crime, and advising the government on banking and other financial currency issues.
The Bermuda Monetary Authority (BMA) regulates banks, trust companies, investment businesses, investment funds, fund management, cash services businesses, corporate service providers and insurance companies in Bermuda, and it also regulates securities transactions in Bermuda.
Institutional Functions
To maintain and strengthen Bermuda's reputation and status as an international financial centre, build a high-level professional team representing the public interest to promote financial stability, protect the currency and provide effective regulation.

Licence application

BMA requires license applicants to meet the following conditions:
a) The applicant's controllers and officers meet the suitability criteria;
b) its firm has appropriate management policies and processes given its nature, size, complexity and its risk profile;
c) Relevant business should be conducted with care (including but not limited to) maintaining minimum net assets, adequate liquidity, adequate accounting and other records, adequate control systems and adequate insurance;
d) Unified Oversight - no company within the group or related companies shall prevent effective unified oversight; and
e) The operating business engaged in must have integrity and professional skills commensurate with the nature and scale of its business.
Details of its minimum licence application criteria are set out in a Statement of Principles issued by the BMA in Section 9 of the Investment Act 2003.
Applicants for investment business licenses must submit the following information to the BMA:
1. Memorandum and Articles of Association of the company; equivalent documents for unincorporated bodies.
2. The most recent financial statements (if applicable, audited statements) together with the financial statements of the parent company and other members of the group (if relevant).
3. A copy of the Client Agreement used or intended to be used for the business.
4. A business plan setting out the nature and scale of the applicant's proposed investment business, and details of the proposed arrangements for operating the business.
5. Questionnaires filled in by all proposed institutions and/or individual controlling persons and employees.
6. A description of the corporate structure and an up-to-date diagram of the broader structure comprising the licensed body.
7. Fees: Check or online payment for license application fee. (See the Fees and Penalties section on the BMA website for details).
8. (a) The anti-money laundering and anti-terrorist financing policies and procedures in compliance with the Anti-Money Laundering and Anti-Terrorist Financing Proceeds (Anti-Money Laundering and Anti-Terrorist Financing) Regulations 2008; and
(b) The name, contact details and relevant qualifications of the reporting officer appointed in accordance with Articles 16 and 17.
9. Policies and procedures implemented by the applicant, including but not limited to compliance, adequate systems of controls and appropriate accounting procedures.
10. Proof of adequate insurance coverage.

License Fee

The Bermuda Monetary Authority (BMA) stipulates that the foreign exchange license application fee is US$2,540 and the annual fee is US$2,310.
Details of licence fees are as follows:

License Type

The Bermuda Monetary Authority (BMA) has banking licenses, insurance licenses, investment industry licenses, investment fund licenses, money service industry licenses, trust licenses, etc. The foreign exchange license belongs to the investment industry license.

Regulatory Rules

The legal framework for the Bermuda Monetary Authority (BMA) to regulate foreign exchange margin business is the Investment Industry Act 2003, the Investment Business Regulations 2004, and the Investment Business Client Fund Management Regulations 2004.
The Bermuda Monetary Authority (BMA) requires financial companies to keep their own funds and client funds separate.
The Bermuda Monetary Authority (BMA) requires foreign exchange licensed companies to provide BMA with annual financial statements and accounts, which must be submitted within 4 months of the company's financial year end. In addition, licensed companies are required to keep relevant records.

Regulatory Inquiries

The first step: Enter the Bermuda Monetary Authority BMA official website: https://www.bma.bm/, click on "LICENSED ENTITIES (licensed entity)" in the upper right corner of the Bermuda Monetary Authority BMA official website;
Step 2 After entering the licensed entity page, you can enter the company name in the search box; if necessary, you can select the corresponding company category in the selection box on the right, such as foreign exchange companies, please select "Investment Business" .
Step 3 After entering the company name, you can see the licensee information: company name, category, address, contact information, business authority, license information, date, etc.

Regulatory complaints

In the event of a dispute between an investor and a company regulated by the Bermuda Monetary Authority, the Bermuda Monetary Authority BMA recommends:
1. Contact the company directly
Contact the company to find the department where the grievance was filed, preferably in writing. The Bermuda Monetary Authority (BMA) requires companies to set up formal complaints procedures and keep logs to ensure they handle complaints in a timely manner. The Bermuda Monetary Authority (BMA) has the right to view the complaint log as part of BMA regulation.
The company is obliged to inform you of the procedures for handling grievances, when and how grievances were resolved or to clearly state why they were not addressed.
2. Contact the Bermuda Department of Consumer Affairs within Bermuda
If you are not satisfied with the company's processing, you can contact the Bermuda Department of Consumer Affairs. They will investigate disputes related to customer service, adhere to the principle of specific analysis of specific problems, and then contact the company to see if they can negotiate and solve the problem.
PLEASE NOTE: When filing a dispute with the Department of Consumer Affairs, please do so as directed on the website.
Bermuda Department of Consumer Affairs official website: https://www.gov.bm/department/consumer-affairs
3. Complain to court
If steps 1 and 2 have not resolved your problem, you can consult a lawyer and file a complaint with the court.

Example of punishment

The Bermuda Monetary Authority (BMA) imposes the following penalties on financial companies: warnings, fines, revocation of licenses and imprisonment.
Warning example:
Bermuda Monetary Authority BMA warns KA Trading Corporation not to provide investment services activities to the public without authorization:
https://www.bma.bm/news-and-press-releases/warning-ka-trading-corporation-ltd
Examples of fines:
Bermuda Monetary Authority BMA fines Barrington Investments $50,000:
https://www.bma.bm/news-and-press-releases/bermuda-monetary-authority-fines-barrington-investments-limited-50-000-restricts-licence
Example of license revocation:
Bermuda Monetary Authority BMA restricts Fines Sun Life Financial Investments company license:
https://www.bma.bm/news-and-press-releases/bermuda-monetary-authority-fines-sun-life-financial-investments-bermuda-ltd-1-500-000-and-restricts-licence< /p>

FAQs

1. Does the Bermuda Monetary Authority (BMA) supervise foreign exchange speculation?
Answer: Regulation. Bermuda BMA regulates foreign exchange speculation, which is a type of investment activity CFDs.
2. I have a complaint against a Forex platform in Bermuda, can I file a complaint with the BMA?
A: The Bermuda Monetary Authority (BMA) does not deal with disputes between financial companies and investors.
Here are some things you can do if you are unhappy with a financial institution:
1. Contact the company directly
Contact the company to find the department where the grievance was filed, preferably in writing. The BMA requires companies to set up formal complaints procedures and keep a log to ensure they handle grievances in a timely manner. The BMA reserves the right to view the complaint log as part of its oversight.
The company is obliged to inform you of the procedures for handling grievances, when and how grievances were resolved or to clearly state why they were not addressed.
2. Contact Bermuda Department of Consumer Affairs
If you are not satisfied with the company's processing, you can contact the Bermuda Department of Consumer Affairs. They will investigate disputes related to customer service, adhere to the principle of specific analysis of specific problems, and then contact the company to see if they can negotiate and solve the problem.
Please note that when submitting a dispute to the Department of Consumer Affairs, please do so as directed on the website.
Bermuda Department of Consumer Affairs official website: https://www.gov.bm/department/consumer-affairs
3. Complain to court
If steps 1 and 2 have not resolved your problem, you can consult a lawyer and file a complaint with the court.

Contact information

Address: Bermuda Monetary Authority, BMA House, 43 Victoria Street, Hamilton, HM12
Tel: +1 441 295 5278
Fax: +1 441292 7471
Email: [email protected]
Website: https://www.bma.bm/

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