The Bermuda Monetary Authority is anticipating another “12 months of intense” activity in 2012 as it looks to implement enhanced regulation for the Island’s re/insurance and banking sectors.In the BMA’s 2012 business plan, CEO Jeremy Cox outlined the regulator’s objectives for this year.“The 2012 business plan signals a departure from previous plans in that it heralds a new phase of supervision, one that marks a shift from policy development to implementation,” stated Mr Cox in the introduction. Mr Cox also announced the organisation’s intentions at their annual meeting last week attended by top executives of the re/insurance and banking industry.According to the Authority, this year they will assume the lead supervisory “group supervision” role overseeing the implementation of regulation for Bermuda-based insurance groups, particularly Class 4 and Class 3B companies. Later this quarter, the BMA will be issuing a market publication detailing exactly how it will conduct its group supervision role.“Given the number of meetings that have already taken place between the Authority’s supervisors and their European counterparts, I believe solid foundations have been laid that will help underpin the working relationships considered by many to be a pre-requisite to effective group supervision,” said Mr Cox.In 2012, the BMA will continue efforts to comply with the European Union’s Solvency II Directive to regulate its major commercial re/insurance market without having to apply the more stringent supervision standards to the Island’s captives. According to the BMA, this segmented approach was deemed permissible by the head of the European Commission unit for insurance and pensions in December.“The Authority is particularly pleased with preliminary guidance indicating that the unique characteristics of Bermuda’s insurance industry are likely to be recognised and accommodated under Europe’s Solvency II Directive,” said Mr Cox. “This is an important aspect of our quest for Solvency II equivalence. While we are committed to ensuring we achieve consistency with international standards, we do not intend to simply duplicate them and apply them here.”Other developments planned for the insurance sector in 2012 include proposed changes in captive reporting requirements as well as an extension of GAAP reporting requirements to include Class C and Class D long-term companies for year-end 2012 filings.Later this year, the BMA will also help to launch the Island’s first Deposit Insurance Scheme (DIS) for Bermuda’s retail banking sector. Government enacted the Deposit Insurance Act 2011 last August.The Authority will also be conducting a market consultation period to determine how to best implement international bank capital standards, Basel III, here in Bermuda.Established in 1969 the BMA has regulatory responsibility for a market that comprises an investment funds sector with an aggregate Net Asset Value of $178 billion; a banking sector with total assets of $23 billion; the BSX with total market capitalisation of more than $319 billion; as well as over 1,200 companies in Bermuda’s insurance market with total assets in excess of $496 billion.