BMA Hosts 10th Financial Policy Council Meeting

June 10, 2019

Bermuda Financial Policy Council [Council] held its tenth meeting on 24th April 2019, with the meeting hosted by the Bermuda Monetary Authority [BMA].

“The role of the Council is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to mitigate or eliminate such threats. It also advises the Government on the development of the financial stability framework in Bermuda, and makes policy recommendations designed to support the general economic and financial well-being of the country,” a spokesperson said.

“Members of the Council are the Minister of Finance the Hon. Curtis Dickinson [chair], Sir Andrew Large [deputy chair], BMA Executive Chair Jeremy Cox, Michael Butt, Dame Amelia Fawcett, Gil Tucker and Dr. DeLisle Worrell.

“At the April 24th meeting, Council members discussed Bermuda’s fiscal situation and debt outlook. While noting the improvement in the medium-term fiscal outlook in the wake of decision taken in recent budgets, Members urged the Government to continue to identify ways of making progress in reducing the large level of outstanding government debt.

“Council members also reviewed progress being made in implementing the Government’s proposed changes to immigration policy. The prospect of declining demographics represent a major risk to Bermuda’s government finances, in particular as it relates to sustained funding for healthcare and pension benefits. Council members urged the Government to review the possible linkages between immigration policy reform and sustained economic growth.

“Council members also discussed the recent decision by the European Union’s Code of Conduct [Business Taxation] Working Group to put Bermuda on a ‘blacklist, of non-cooperative jurisdictions’ initiative. Members supported the decision of the Bermuda government to promptly engage with EU officials in order to get the island removed from the blacklist.

“Importantly, Council members welcomed the decision by the Government to strengthen its efforts to comply with the agreements reached with the European Union’s Code of Conduct [Business Taxation] Working Group in the timeliest possible manner.

“Several areas of Bermuda’s emerging fintech sector were also discussed during the meeting, including the regulatory framework for digital asset business firms and initial coin offerings.

“Members reviewed some international comparisons and examined the balance of risks and opportunities emerging from fintech, and how best to promote the further development of Bermuda’s fintech sector, while ensuring that Bermuda’s reputation as a world class International Financial Centre was robustly protected.

“In addition, the following topics were discussed:

  • “Work underway in Bermuda aimed at strengthening the jurisdiction’s resilience to cyber incidents, including measures taken by the Bermuda Government, regulated financial institutions and the BMA.
  • Activities underway at the Ministry of Finance and the BMA with respect to continuing with the development of a resolution framework for Bermuda banks.”

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