Bermuda's Ministry of Finance outlined a legislative agenda to strengthen consumer protections in financial services, review home insurance rules, and embed new fiscal guardrails as Corporate Income Tax (CIT) revenues are incorporated into long-term planning. The programme also includes pension system changes and measures to expand access to basic banking services during the current legislative session, which runs until September 2026. Planned steps include updating the Lender Code of Conduct and empowering the Regulatory and Competition Authority to impose penalties on financial institutions that do not meet required consumer protection standards, alongside strengthened legal protections for mortgage and lending customers facing financial difficulty. Work will be taken forward with the Bermuda Monetary Authority and industry stakeholders to review home insurance regulations and explore reforms that would allow homeowners to choose coverage levels based on realistic risk assessments. On fiscal governance, the Government plans to implement the Tax Reform Commission’s recommendations and establish an independent Sovereign Wealth Fund to invest excess CIT proceeds, with stated aims including supporting infrastructure and public services and reducing national debt over time. Further measures flagged include amending the Public Service Superannuation Act to address the unfunded liability while restoring cost-of-living increases for public sector retirees that have been suspended since 2014, finalising legislation to cap pension fees with an estimated potential benefit of up to USD 75,000 retained in retirement savings, and advancing legislation in the summer session to require all banks licensed in Bermuda to provide basic banking services to all residents. The Government will deliver the 2025/26 Budget to the House of Assembly on 2 May and also plans a financial literacy campaign, starting with a survey and follow-on initiatives developed with pension administrators and other stakeholders.
Ministry of Finance (Bermuda) 2025-03-17
Bermuda Ministry of Finance sets out plans to tighten consumer protection in lending and insurance and to establish a corporate income tax funded Sovereign Wealth Fund
Bermuda's Ministry of Finance announced plans to enhance consumer protections in financial services, review home insurance rules, and incorporate Corporate Income Tax revenues into long-term planning. Key measures include updating the Lender Code of Conduct, empowering the Regulatory and Competition Authority to impose penalties, and establishing a Sovereign Wealth Fund. Additional initiatives involve pension system reforms, mandatory basic banking services, and a financial literacy campaign.