House Passes Bill: New Bank Class For Fintech
The House of Assembly passed a Bill to create a new class of bank to serve Bermuda-based Fintech companies.
After the Bill passed last night, Premier David Burt tweeted, “House of Assembly passes bill to create new class of bank to serve Bermuda based Fintech companies. Now moves to Senate for ratification.”
In tabling the Bill last month, the Premier said that the ICO Bill and the Digital Asset Business Act “set the stage for the increased incorporations and growing commitment to doing business in Bermuda by the most innovative companies from around the globe.
“The business conducted by these companies is not traditional,” the Premier said. “Given their risk tolerances, to date local banks have been unwilling to offer services to newly incorporated FinTech and distributed ledger technology companies.
“In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and must be resolved.
“To ensure that the Government is able to effectively execute on its FinTech initiatives, as well as encourage responsible FinTech innovation that provides fair access to financial services and fair treatment of consumers, the Banks and Deposit Companies Act 1999 will be amended to allow for a new class of bank that will provide banking services to Bermuda based FinTech companies,” the Premier said when the Bill was tabled.
“Our traditional banks, those household names, have played their part in this community over many years. It is a fact of business and a fact of life that survival and growth can only be achieved through an ability to evolve and innovate.
“Legacy industries the world over have lost that ability and the future belongs to those who can quickly lay a foundation for growth, respond to emerging trends and preserve a reputation for sound management in the process. For countries it is no different, Bermuda must be nimble or we will be left behind.”
The Banks and Deposit Companies Amendment Act 2018 follows below [PDF here]:
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This is a good diversification strategy but please will you as Premier and Minater of Finance advise taxpayers what your Governments position is in respect of controlling and paying down the country’s national debt.
Ha! Don’t hold your breath waiting for an answer to that.
The PLP are depreciating Bermuda into a more risky jurisdiction. Such an easy thing to do. All in the name of dealing with shadowing people that do not want to be identified. Bermudians will not do well under this. More potential jobs will be lost than gained. If Bermuda’s risk profile is any worse than “low risk”, all new legit business that might come to Bermuda will gravitate to other jurisdictions viewed as “low risk”. If you’re kids are soon to come out of university looking for a job, they now might find it easier to work elsewhere.
The national debt seems to a topic that the present government refuse to talk about, I wonder why.
Junior minister wayne should hold a press conference.
Well this is just moronic. The reason the traditional banks will not bank such companies is that they cannot and still comply with international antimoney laundering reglations. Idiots. On the one hand we say we want a successful FATF audit and on the other we say we want to support gaming and crypto currencies. Either our government are just morons or they are morons and completely problematic. Willful stupidity is not a valid method for running a country, And another thing, Introducing a weak new pillar of the economy by knocking down our strong insurance pillar’s ratings in order to build it in the same place is beyond ludicrous. Bye bye sovereign ratings! Bye bye insurance sector. It’s bad enough that huge swathes of Bermuda insurance companies are now writing their new business else where, essentially leaving shell run off presences here that give us the illusion that we still have a decent insurance presence. Between BEAT and the increasing view that tax avoidance is as unacceptable as tax evasion, we now have our own willfully ignorant government attempting to kill whats left of our Financial Services sector. Cretins!!!!
This will not end well.
Bermuda’s rep has just gone down the toilet!
It has if the OECD decide to attack us.
This is one of many vehicles to generate additional tax revenue in this case from FinTech. A step in the right direction.
one of many? Tells us what the rest are.
This is a tick tock slow countdown to cementing Bermuda’s reputation in the toilet.
How much tax revenue has been generated so far from fintech? In round numbers?
So we are allowing high-risk banks to incorporate.
Cayman and all our other competitors must be thrilled. They’re folding their arms, sitting back and watching as we destroy our good reputation.
Wonder who is behind all of this.
Cayman has the perfect formula. Mimic our private sector and do the opposite of our Government.
“It is a fact of business and a fact of life that survival and growth can only be achieved through an ability to evolve and innovate.”
I agree. I do, however, question why the government of Bermuda believes it knows better than experienced business people and bankers. If the potential profit outweighed the risks I think an innovative business person would have already provided the services the government now wants others to provide.
I hope this bill gets vetted by our new Deputy Govenor