Mr Speaker, earlier today I tabled the regulations entitled the Banks and Deposit Companies (Over-the-Limit Fees and Unauthorised Overdraft Fees) Regulations 2025. These Regulations represent an important step in ensuring that Bermuda’s financial services framework provides fair treatment for consumers, while also aligning Bermuda with global best practices in banking conduct.

Mr Speaker, the development of these Regulations reflects a progression of work over recent years. Honourable Members will recall that the Banks and Deposit Companies Amendment Act 2022 provided the Minister of Finance, acting on the advice of the Bermuda Monetary Authority, with powers to regulate banking fees. Since the time of the Amendment Act’s passage, following extensive consultation with the Bermuda Bankers Association and its members, these Regulations have been put into force to provide greater fairness for consumers.

Mr Speaker, the purpose of these Regulations is to provide clear rules governing the imposition of over-the-limit fees and unauthorised overdraft fees by banks and deposit-taking institutions. Specifically, the Regulations will ensure that:
I. Over-the-limit fees may not be charged when a customer exceeds their credit limit solely due to interest or other fees.
II. Over-the-limit fees may only be imposed once per calendar month for each product, service, or facility.
III. Unauthorised overdraft fees may only be imposed once per calendar month — or once per quarter, where the billing cycle is longer than 90 days—for each product, service, or facility.
IV. Customers must be given the choice, through an expressed agreement, whether to opt into over-the-limit arrangements.
V. Institutions must provide clients with annual opportunities to review or terminate these agreements.
VI. Institutions that fail to comply will commit an offence punishable by a fine.

Mr Speaker, these Regulations give legal effect to the commitments previously made by this Government to address long-standing concerns about fairness in the banking sector. In practical terms, this means that the provisions prohibiting multiple or fee-driven over-the-limit and overdraft charges within a single billing period are now in force, ensuring that Bermudians are no longer penalised unfairly for unauthorised overdrafts.

Further, the provisions requiring explicit customer opt-in and the opportunity for an annual review shall come into effect in April 2026. This transition period has been structured to provide institutions with sufficient time to update and adjust their systems, so that when these new requirements take hold, they can be implemented without disruption to customers.

Mr Speaker, the public should know that the Regulations tabled earlier today are not the conclusion of our work in this area. They form part of a broader programme of reform to improve access to and fairness in banking services.

The next steps will include advancing measures to ensure access to a basic bank account for all legal Bermuda residents, consistent with Bermuda’s obligations under international standards such as those of the Financial Action Task Force (FATF). Technical officers are currently reviewing the policy to be advanced in collaboration with the Bermuda Monetary Authority, and consultation has already commenced with the Bermuda Bankers Association.

Additionally, Mr Speaker, we will also advance reforms to address the overall structure and level of bank fees in Bermuda. Policy discussions in this area are progressing and the outcome will be the establishment of a banking fee framework that introduces stronger oversight of bank fees through annual disclosure and Ministerial review of fee increases.

Taken together, these further reforms will ensure that banking services are transparent & affordable, while ensuring that every Bermudian is able to have access to the services of a bank account.

Thank you, Mr Speaker.