Created: Jan 14, 2025 06:05 PM (Updated: Jan 14, 2025 08:23 PM)
The Fiscal Responsibility Panel joined the FPC in examining work under way in relation to Corporate Income Tax in Bermuda (File photograph)
Bermuda’s strong economic performance was discussed in the latest meeting of the Financial Policy Council, with the international business sector noted as a key driver.
The organisation’s 27th meeting on December 12 reviewed the 2024 Fiscal Responsibility Panel assessment, gross domestic product, balance of payments, and jobs and employment income data including various industry sector contributions.
The Fiscal Responsibility Panel joined the FPC in examining implementation and implications of the introduction of Corporate Income Tax in Bermuda.
Additionally, FPC explored global structural changes in the life insurance sector and developments in Bermuda’s role as a centre for reinsurance which have arisen as a result.
Talks addressed recent enhancements to Bermuda’s framework for life reinsurers, including the publishing of the Bermuda Monetary Authority’s studies on the sector, along with the enhanced supervisory measures that were taken.
Bermuda’s international engagement on the matter was commended. The growth of the sector was noted along with the consequent risks.
Another focus, was recent developments in Bermuda’s banking sector, including regulatory work under way and resolution framework planning.
The FPC reviewed the implications for Bermuda of the US elections of November 2024, developments in the international tax arena, and Government initiatives to retain Bermuda’s workforce.
Members also assessed the efficacy of Bermuda’s anti-money laundering and counter-terrorism financing efforts, particularly in light of the Caribbean Financial Action Task Force assessment schedule for April 2027.
The FPC’s next formal meeting will be on April 10. It is an advisory body supported by the Ministry of Finance and the BMA.
It’s role is to assess possible threats to Bermuda’s financial stability, and to identify policies and actions to mitigate or eliminate such threats.
It also advises the Government on the development of the financial stability framework in Bermuda, and makes policy recommendations designed to support the general economic and financial wellbeing of the country.
Since its first meeting in December 2015, the FPC has been meeting up to five times per year.
Current members include chair David Burt, ex officio the Minister of Finance; Craig Swan, CEO of the BMA; and Chidozie Ofoego, Financial Secretary.
External members are deputy chair Sir Andrew Large, Dame Amelia Fawcett, Stephen Catlin, Gil Tucker and DeLisle Worrell.