BMA proposes stricter rules for corporate service providers
The Bermuda Monetary Authority has proposed tougher rules for corporate service providers in an effort to strengthen oversight and protect Bermuda’s reputation as a financial centre.
The new Corporate Service Provider Business Rules 2025 would require companies to file regular financial reports, maintain stronger financial reserves and meet strict standards for handling client money. The rules are now open for public consultation until June 4.
Under the draft rules, CSPs with limited licences would need to maintain minimum net assets of $12,000, while those with unlimited licences would need $50,000. CSPs would also have to hold enough liquid assets to cover one to three months of expenses, depending on their licence type.
The Authority said the changes were aimed at improving “transparency and accountability”, as well as operational soundness across the sector.
“Regulatory filings will serve as a comprehensive record of a CSP’s financial health, performance and compliance with regulatory standards,” the BMA said in the consultation paper.
The rules would also introduce tougher procedures for managing client money. CSPs would be required to segregate client funds, perform regular reconciliations and undergo annual independent reviews of their client accounts. Firms would have to immediately notify the BMA if they breach liquidity or asset requirements or if they face serious financial problems.
In addition, the BMA plans to repeal Section 36(c) of the Corporate Service Provider Business Act 2012, which currently gives companies the right to appeal a denied licence. The Authority said this appeal provision was no longer needed now that the sector has matured.
The BMA said it will review all stakeholder feedback before finalising the new rules. “Following the consultation period, the BMA will review and incorporate the feedback, and publish the final rules and guidance,” the paper said.
Anyone interested in commenting can send submissions to policy@bma.bm by June 4.
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