Joining Guernsey and the Cayman Islands, Jeremy Cox, CEO of the Bermuda Monetary Authority, announced that Bermuda will not apply Solvency II to captives. Mr. Cox’s remarks came during his presentation of the BMA’s 2013 Business Plan on January 29, 2013. Click here for the BMA’s press release.
However, Mr. Cox noted that the BMA will implement refined reporting requirements for captives including reporting risk return as part of consolidated annual filings. Information about risk return will enable the BMA to obtain information about “key risks” faced by captives. Mr. Cox stressed that it is important for the BMA to make independent decisions about the Bermuda market “while taking into account achieving global recognition for [the BMA’s] supervisory regime.” Guernsey and the Cayman were lauded for their decisions not to apply Solvency II-type regimes to captives and some suggested that the jurisdictions might gain competitive advantages over captive jurisdictions that did not clearly opt-out of Solvency II.
Mr. Cox also announced that the BMA remained committed to “international engagement” and that it plans a new licensing and supervisory regime for the recently enacted Corporate Service Provider Business Act.