Monetary Authority Fines Barrington Investments

August 29, 2016

The Bermuda Monetary Authority [Authority] have announced that they have “fined local investment company, Barrington Investments Limited [Barrington], $50,000 for a number of serious regulatory breaches”.

A spokesperson said, “In addition, the Authority has restricted Barrington’s investment business licence. This means that while the company is permitted to continue with its existing business, it is prohibited from taking on any additional business.

“Specifically, Barrington will not be allowed to accept new investment business or solicit investment business through public advertising. The restrictions will remain in place until the Authority is satisfied that Barrington is fully compliant with all its obligations under the Investment Business Act 2003 [the Act].

“Exercising its powers under the Act, the Authority found that Barrington was in breach of the Minimum Criteria for Licensing under the Act in three key areas: corporate governance; conducting business in a prudent manner; and risk management.

“The breaches included a failure to have in place governance and management structures appropriate to the business; a failure to have proper operational policies and procedures in place; a lack of a formalised internal control framework; and a failure to have a proper risk management function.

“The breaches were identified during an on-site review conducted at Barrington by Authority personnel in February 2016. Thereafter the statutory process was followed, culminating in a 28-day appeal period which terminated on 24th August. The decision was not appealed.”

David Cooper, Director, Barrington Investments Limited said, “The Bermuda Monetary Authority [the Authority] has temporarily restricted our licence in relation to new business.

“We understand that this has arisen from their determination that there has been a failure by Barrington to comply with all of the obligations imposed by the Investment Business Act – much of which concerns corporate governance and the appropriate number of directors required to conduct investment business.

“We wish to stress that no client assets are affected. Barrington Investments upholds strict policies regarding the segregation of client assets; all clients’ accounts are registered in their own name and held directly with our clearing agent.

“As many of our clients are aware, Mr. Curtis Begg, Barrington’s Managing Director for many years, fell ill some months ago and, as a result, was increasingly unable to provide the day-to-day leadership and senior management oversight required under the Investment Business Act.

“To assist in this area, we have recently appointed David Pugh as Managing Director. David has well over 30 years of senior management experience in financial services and is working closely with management and staff on a daily basis.

“The entire Barrington team has worked diligently in recent months to update and document policies and procedures to improve corporate governance, operational compliance and risk management.

“We hired Oyster Consulting, a regulatory and compliance consulting firm, to assist us in this matter. We believe that all required documents have now been submitted to the Authority.

“Whilst we are disappointed to note the restrictions imposed upon our licence, we look forward to working with the Authority to satisfy them that Barrington is fully compliant with its obligations under the Act.”

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Comments (6)

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  1. Warwick Wonder Woman says:

    Uh oh, someone was naughty.

  2. Truth is killin' me... says:

    $50,000…that’s it? Not much of a deterrent if you ask me! Have some teeth BMA.

    • Mike says:

      If the BMA used it’s teeth everyday – we wouldn’t have a bank operating in Bermuda for starters.

  3. planeasday says:

    Are you kidding? This island funds itself off of “grey” areas and “regulatory breaches”…