The Financial Policy Council (FPC) held its twenty seventh meeting on 12 December 2024. All FPC Members were able to participate in the meeting, which was run in a hybrid format, with the majority of Members taking part in person at the Bermuda Monetary Authority.
The FPC reviewed the performance of Bermuda’s economy. Material reviewed included the 2024 assessment carried out by the Fiscal Responsibility Panel as well as GDP, Balance of Payments, jobs and employment income data, including the contributions of the various industry sectors. The strong performance of the economy was analysed, noting the prominence of the international business sector as a key driver of the economy. Members also discussed the work underway in relation to implementing, as well as the possible implications of the Corporate Income (CIT) in Bermuda. The Fiscal Responsibility Panel members joined FPC discussions on these matters.
Additionally, FPC Members discussed the structural change in the life insurance sector which has occurred globally and developments in Bermuda’s role as a centre for reinsurance which has arisen as part of this change. Discussions addressed recent enhancements to Bermuda’s framework for life reinsurers, including the publishing of the BMA’s studies on the sector[1], along with enhanced supervisory measures taken. Bermuda’s international engagement on the matter was commended. The growth of the sector was noted along with the consequent risks.
FPC Members also discussed recent developments in Bermuda’s banking sector, including regulatory work underway and resolution framework planning.
FPC Members reviewed other key risks to Bermuda’s financial stability. They discussed a wide range of issues, from the implications for Bermuda of the US elections of November 2024 to developments in the area of international tax, and initiatives underway in Government to retain the workforce in Bermuda. Members also discussed work ensuring Bermuda’s anti-money laundering and counter-terrorism financing (AML/CFT) continues to operate in an effective manner, in particular in light of the Caribbean Financial Action Task Force (CFATF) assessment schedule for April 2027.
Finally, Members discussed the status of the further implementation of the recommendations issued under the Financial Policy Council Review undertaken in 2023.
The next formal meeting of the FPC, its 28th one, is scheduled to take place on 10th April 2025.