• EN-8.2 EN-8.2 BMA Policy

    • EN-8.2.1

      The Agency views the administration of a licensee as a very powerful sanction, and will generally only pursue this option if less severe measures are unlikely to achieve its supervisory objectives.

    • EN-8.2.2

      Although Article 93 of the BMA Law specifies the circumstances in which the Agency may pursue an administration, it does not oblige the Agency to administer a licensee. Faced with the circumstances described, the Agency may pursue other courses of action, if it considers that these are more likely to achieve the supervisory outcomes sought. Because an administration is likely to send a negative signal to the markets about the status of a licensee, other supervisory actions may in fact be preferable in terms of protecting the interests of those with a claim on the licensee.

    • EN-8.2.3

      The criteria used by the Agency in deciding whether to seek an administration of a licensee include the following:

      (a) the extent to which the interests of the market, its users and those who have a claim on the licensee would be best served by the administration of the license, for instance because of the potential impact on asset values arising from an administration;
      (b) the extent to which other regulatory actions could reasonably be expected to achieve the Agency's desired supervisory objectives (such as restrictions on the licensee's operations, including limitations on new business and asset disposals);
      (c) the extent to which the liquidity or solvency of the licensee is in jeopardy; and
      (d) the extent to which the licensee has contravened the conditions of the BMA Law, including the extent to which the contraventions reflect more widespread or systemic weaknesses in controls and/or management.