Bermuda Monetary Authority Amendment (No. 3) Act 2022

What this bill does

This bill updates the rules for Bermuda's central bank (the Bermuda Monetary Authority) to give it more flexibility in how it manages the country's money reserves and investments. It expands what types of securities the Authority can invest in and allows it to hold both local and foreign assets as reserves, while also updating some licensing fees.

If passed (voted YES)

• The Bermuda Monetary Authority can invest in a wider range of financial products, including mutual funds, private investments, and derivatives, potentially improving returns on Bermuda's reserves
• The Authority can now buy shares in any company, including banks, which was previously prohibited
• Annual fees increase significantly for digital asset businesses (from $15,000 to $150,000) and new $850 fees are introduced for certain investment providers

If rejected (voted NO)

• The Authority remains limited to more traditional investment options for managing Bermuda's reserves
• The restriction preventing the Authority from buying bank shares stays in place
• Current fee structures for digital asset businesses and investment providers remain unchanged

Who it affects

This primarily affects the Bermuda Monetary Authority's operations and indirectly impacts all Bermudians through how the country's financial reserves are managed. Digital asset businesses and certain investment companies will see higher annual fees if the bill passes.