<Bt-3>Bermuda has to stand up for its own interests says Lister
There is no such thing as a level playing field among quality financial services centres, Bermuda Monetary Authority (BMA) chief executive officer Cheryl Lister said on Wednesday. “Bermuda has to look out for its own interests, and we cannot count on anyone outside Bermuda to ensure that our interests are protected,” Mrs. Lister said.
In fact, she continued, “there are some jurisdictions that you might have thought would be assisting us, who see us as competition”.
Mrs. Lister did not name the jurisdictions, since Bermuda does not as a matter of policy to criticise other jurisdictions, but she did speak of having seen “enough articles in (British newspapers) the Guardian and the Financial Times about the competitive nature that exists between Bermuda and that other jurisdiction”.
An Internet search of recent articles published by those two newspapers suggests that the “other jurisdiction” to which Mrs. Lister referred is the Cayman Islands, which has been fairly vocal in its criticism of Bermuda’s work permit time limits and the damage the new rules are doing and will continue to do to Bermuda’s international business interests, even though Cayman has adopted similar legislation.
Mrs. Lister made her comments near the end of a presentation in which she outlined the recent history of the BMA to those attending the annual general meeting of the Association of Bermuda Compliance Officers (ABCO). The Association is a professional grouping of those employed in the compliance sector, which has been one of the fastest-growing areas of corporate governance of late.
The International Monetary Fund (IMF) is to visit Bermuda in May as part of its ongoing assessment of the Island’s regulatory regime. Mrs. Lister said she was “excited” about the visit and the prospect of explaining to the IMF inspectors the progress that has been made since their last visit two years ago.
She revealed some of the workings of the IMF and others who have visited Bermuda in her time at the Authority, indicating that the BMA had on occasion not been entirely happy with the approach adopted by some of these visitors.
Mrs. Lister is to step down from her BMA role later this year. She said the Authority faces four challenges:
[bul] An accelerated pace of change.
[bul] Getting the balance right. The BMA’s work is “constantly a very delicate balancing act to insure that the regulation is appropriate, that it meets international standards, and yet at the same time, does not negatively impact quality business in Bermuda,” she said. “Our aim is to ensure that we have appropriate, risk-based regulation that meets international standards, and that provides the right environment for quality business to flourish. (The regulation) also has to have the necessary powers, so that in the event there is a problem, we can act quickly and effectively.”
[bul] Protecting Bermuda’s interests in an uneven world.
[bul] Change management. “This is a very real challenge that we’ve had in the last seven years that I have been involved with the Authority, and that we will continue to have,” Mrs. Lister said.
Speaking without notes, she most entertainingly described the way in which Bermuda’s participation in international regulatory reviews is carried out. “We are asked to participate, and sometimes asked to contribute to the cost of the review,” she said, holding one hand tightly behind her back to indicate that the Authority had little choice but to comply with the “requests”.
Compliance is ABCO’s main interest. Formed in February 1999, the Association “encourages its members to strive to serve their employers and the Bermuda financial marketplace by seeking to enhance the role of compliance locally, with a view to bolstering trust in, and better ensuring the integrity of, the expanding Bermuda financial service industry”.
ABCO will hold the Bermuda Compliance Summit, its first major international conference, from June 4 to 6 at the Fairmont Southampton Princess. The conference will feature internationally renowned speakers from industry and governments around the world.
Conference delegates will be offered valuable insight into Bermuda’s regulatory system and the global regulatory initiatives that impact Bermuda businesses.
Among the hot topics in compliance that will be discussed at the conference are impending significant changes to the Proceeds of Crime Act, which is to apply far more broadly and which will regulate accountants and lawyers as well as financial institutions; and the impact of recent changes to the Companies Act.
ABCO has close ties to compliance organisations in the UK and United States. Over 100 attendees are expected at the summit.
