HAMILTON, BERMUDA - The Bermuda Monetary Authority (the Authority) has imposed a civil penalty on Colonial Pension Services Ltd. (the Company), a local entity licenced under the Investment Business Act 2003 (the Act) in the amount of $200,000. The civil penalty is imposed on the Company for breaching a condition of the Company’s licence and for committing multiple breaches of the Investment Business (Client Money) Regulations 2004 (the Regulations).
It is a requirement of the Act that the Company comply with the terms of its licence, including any conditions on the licence. It was a condition of the licence that the Company not hold client assets, manage investments, or safeguard or administer investments. Between November 2015 and December 2017, the Company held client assets, in breach of that condition. The Authority considers licencees who knowingly or negligently conduct business in contravention of the conditions of their licence to be egregious.
