The Bermuda Monetary Authority Amendment (No. 3) Act 2018

29 Jan 2026

The Bermuda Monetary Authority Amendment (No. 3) Act 2018 represents a significant legislative update aimed at revising and standardising the fee structures across various financial sectors regulated by the Bermuda Monetary Authority (BMA). This Act, which came into effect on January 1, 2019, introduces amendments to the Fourth Schedule of the Bermuda Monetary Authority Act 1969, alongside consequential changes to other related legislation, including the Banks and Deposit Companies (Fees) Act 1975, the Investment Funds Act 2006, and others. The overarching goal of these amendments is to ensure a more structured and transparent fee framework for entities operating under the purview of the BMA.

Phased fee implementation across three years

The Act is structured to implement a phased fee schedule spanning three years—2019, 2020, and 2021—under Parts A, B, and C of the Fourth Schedule. Each part outlines specific fees applicable to various financial entities, including banks, insurance companies, investment funds, corporate service providers, and digital asset businesses. The fee structures are designed to reflect the scale and complexity of the entities, with larger institutions or those managing higher assets or premiums subject to higher fees. For instance, banks are categorised into bands based on their consolidated gross assets, with annual fees ranging from US$20,620 for smaller institutions to over US$400,000 for the largest entities by 2021.

Fee structures for insurance companies

Insurance companies are similarly categorised into classes based on their business type and scale, with fees varying accordingly. For example, Class 1 insurers carrying on general business are subject to lower fees compared to Class 4 insurers or those managing significant gross premiums. The Act also introduces specific fees for applications, such as those for registration, licence renewals, and extensions of filing deadlines. Notably, the legislation includes provisions for sliding scale fees for complex applications, such as internal capital model approvals, which are assessed based on the structural and organisational complexity of the applicant.

Digital asset businesses and innovation

The amendments extend to digital asset businesses, reflecting Bermuda’s commitment to fostering innovation in financial technology. Licensed undertakings in this sector are subject to application and annual fees calculated based on their estimated client receipts, with a cap of US$450,000. This ensures that fees are proportionate to the scale of operations while supporting the growth of the digital asset industry.

Investment funds and trust businesses

Additionally, the Act revises the fee structures for investment funds and trust businesses, introducing application and annual fees that align with the size and scope of operations. For instance, investment funds are categorised into standard, administered, and institutional funds, each with distinct fee requirements. Trust businesses, on the other hand, are subject to fees based on their gross income, ensuring that smaller entities are not disproportionately burdened.

Ensuring compliance and accountability

The phased implementation of these fee schedules underscores the BMA’s commitment to providing a predictable and equitable regulatory environment. By aligning fees with the scale and complexity of regulated entities, the Act aims to balance the financial burden on businesses with the need to maintain robust regulatory oversight. Furthermore, the inclusion of late filing penalties and transaction fees for specific applications ensures compliance and accountability within the financial sector.

Conclusion: Modernising Bermuda’s financial framework

In summary, the Bermuda Monetary Authority Amendment (No. 3) Act 2018 represents a comprehensive effort to modernise and streamline the fee structures across Bermuda’s financial regulatory framework. By introducing a transparent and scalable fee system, the Act supports the BMA’s mission to uphold the integrity and stability of Bermuda’s financial system while fostering growth and innovation in key sectors.

Further reading