December 10, 2023

Bermuda Monetary Authority Fines Barrington Investments Limited $50,000 – Restricts Licence

screen-shot-2016-09-15-at-8-27-49-amHAMILTON, BERMUDA – The Bermuda Monetary Authority (Authority) has fined local investment company, Barrington Investments Limited (Barrington), $50,000 for a number of serious regulatory breaches.

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.

In March this year, in the Authority’s 2016 Business Plan, CEO Jeremy Cox announced a pivotal change of policy in relation to enforcement decisions. He said: “Until now, the Authority has chosen to limit publicly disclosed details of enforcement actions to a fairly brief notification in its annual report. But from 2016 onwards, the Authority will publish details of any use of its enforcement powers. Such publicity will be in the form of a press release issued by the Authority following conclusion of any appeal or after expiry of an appeal period. The release will detail the nature of the enforcement action, the size of any penalty, the identity of the entity or person involved and the circumstances of the breach. Details will also be included in the annual report and on the Authority’s website.” Mr. Cox added that this increased transparency was critical to the reputation of the jurisdiction “and is intended to demonstrate to those who rely on our supervisory adjudications that their trust is not misplaced and that Bermuda-based entities found to be deficient in meeting their obligations run the risk of being required to account publicly for their actions”.

 The Authority is the regulator of the financial services sector in Bermuda. Established under the Bermuda Monetary Authority Act 1969, the Authority supervises, regulates and inspects financial institutions operating in or from within the jurisdiction. It also issues Bermuda’s national currency, manages exchange control transactions, assists other authorities in Bermuda with the detection and prevention of financial crime, and advises the Government and public bodies on banking and other financial and monetary matters. The Authority develops risk-based financial regulations that it applies to the supervision of Bermuda’s banks, trust companies, investment businesses, investment funds, fund administrators, money service businesses, corporate services providers and insurance
companies. It also regulates the Bermuda Stock Exchange.

SOURCE: Bermuda Monetary Authority

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