Financial Policy Council Meeting Today
The Financial Policy Council [FPC] will be holding its next meeting today [Dec 16] which will include “discussions on the 2021 Throne Speech initiatives and consideration of key findings of the 2021 assessment report of the Fiscal Responsibility Panel.”
A Government spokesperson said, “The Financial Policy Council [FPC] will be holding its next meeting on 16 December 2021. Similar to the seventeenth meeting which was held on 22 July 2021, where all members participated, it is expected that the upcoming meeting will run in a hybrid format.
“Thus, some members will join via teleconference, and others will take part in person at the Headquarters of the Ministry of Finance.
“At the July meeting, there was focus on strategies for strengthening Bermuda’s economy in light of the Covid-19 pandemic, as well as key recent international developments like the OECD Inclusive Framework on Base Erosion and Profit Shifting.
“FPC Members discussed, at that time, both risks and opportunities emerging from the much transformed domestic and global economic landscape. Members not only encouraged Bermuda to continue its active participation in the OECD work but also recommended that Bermuda should double its efforts towards continuing its engagement and dialogue with US, UK, EU and OECD partners.
“At the meeting to be held this week, the Ministry of Finance will have the opportunity to report on the significant work that has been done since July in advocating for Bermuda’s interests, as these substantial tax proposals have been discussed at the OECD and in many of Bermuda’s key trading partners.
“The joint work by public and private stakeholders has been a critical factor in the growth and development of Bermuda’s economy, and this was reinforced in the July discussions of the FPC.
“Members also stressed that sound and productive industry-government dialogue has been at the heart of Bermuda’s ability to successfully navigate wide-ranging and fast-moving international reforms, from tax to regulation to financial supervision.
“During this week’s discussions, the FPC will therefore be informed on recent work that has been undertaken involving government and industry participants collaborating together, to address critical threats and capitalise on opportunities in relation to fiscal and economic matters. The Ministry of Finance will also be able to provide further updates, as they did in July, on actions being taken to understand and assess the potential impact of the global tax agreement on Bermuda.
“The important work being done to set Bermuda on a path to recovery and sustainable growth will continue to be a key area of focus for the FPC. As they did in July, FPC members will this week continue their discussions on the work underway in the implementation of Bermuda’s Economic Recovery Plan [ERP]. In the July meeting, members reinforced the importance of, as proposed in the Plan, having well-articulated steering and management arrangements, given the nature and scope of the work to be done in that regard.
“They also reviewed plans in place to develop a National Digital Bank. During the discussions on this proposal, they noted potential opportunities and risks which needed to be given appropriate consideration, along with strategies for evaluation and management.
” As part of the continued focus on sustainable growth, this week’s meeting, in addition to further consideration of ERP matters, will also include discussions on the 2021 Throne Speech initiatives and consideration of key findings of the 2021 assessment report of the Fiscal Responsibility Panel.
“Bermuda, and the evolving work of digital finance, will once again be a topic of discussion at this week’s meeting of the FPC. In the July 22nd session of FPC, this important subject was one of those addressed at the second Roundtable held between the FPC and CEOs of Bermuda banks and the Bermuda Bankers Association.
“This annual Roundtable was established to address risks and opportunities facing Bermuda in a fast moving international context, and to foster mutual understanding on issues of concern to both banks and the government. Matters discussed at the July 2021 roundtable also included the global tax initiative, and there was agreement on the continued need to maintain open and fluid dialogue. This week, the BMA will provide the FPC with an overview of developments in digital finance in Bermuda, since the introduction of the fintech regulatory framework. This will facilitate discussion on the opportunities and risks of fintech in Bermuda.
“As was the case in previous discussions, members will consider and opine on Key Risks to Bermuda’s financialstability. In July, the FPC reviewed an FPC Register of Key Risks to Bermuda’s Financial Stability and discussed the relevance of the risks in the Register in light of domestic and international developments, including the growing influence of climate risk. With input provided by the BMA and Ministry of Finance teams, discussions this week will focus, in particular, on banking sector risks.
“Finally, it is intended that this week’s meeting will include consideration of matters related to reviewing FPC and, in particular, the next steps to make a review process operational. This will allow for an assessment to be undertaken to further enhance the role and work of theFPC, and the positive contribution that it makes in promoting and preserving financial stability within the Bermuda economy.”
