The Bermuda Monetary Authority (BMA) has issued a consultation paper on proposed Corporate Service Provider (CSP) Business Rules 2025 intended to strengthen oversight and transparency for CSPs operating in Bermuda and support alignment with international standards. The package would introduce regular regulatory returns, minimum financial resource requirements, and more prescriptive client money safeguards, alongside related amendments to the Corporate Service Provider Business Act 2012. Key proposals include mandatory annual and quarterly returns in BMA-specified formats, each accompanied by signed declarations from senior officers, with annual returns due within four months of a CSP’s financial year-end and quarterly returns due within 21 days of quarter-end. The draft rules set minimum net assets at $12,000 for limited licences and $50,000 for unlimited licences, with scope for the BMA to set a higher threshold in specific cases, and require liquid assets equivalent to one month (limited) or three months (unlimited) of annual expenditure. Client money measures cover definitions, segregation and disclosure expectations, recordkeeping and reconciliations (at least monthly for pooled accounts), policies and controls subject to annual review, and conditions for using client money to pay fees; CSPs would also be required to notify the BMA promptly of breaches or expected breaches of net asset or liquidity requirements and specified adverse financial developments. Comments are due by 4 June 2025. Following the consultation, the BMA plans to finalise and publish the rules and guidance, with commencement proposed to follow passage of the related amendments to the Act.
Bermuda Monetary Authority 2025-04-28
Bermuda Monetary Authority consults on Corporate Service Provider Business Rules 2025 proposing $12,000 to $50,000 minimum net assets and new liquidity and client money requirements
The Bermuda Monetary Authority released a consultation paper on proposed Corporate Service Provider Business Rules 2025 to enhance oversight and transparency, aligning with international standards. Key proposals include mandatory annual and quarterly returns, minimum net asset requirements of $12,000 for limited licences and $50,000 for unlimited licences, and stringent client money safeguards. The BMA aims to finalize and implement these rules following the consultation and legislative amendments.