Principal functions of Authority

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The principal functions of the Authority are —

monetary functions, namely —

to issue and redeem currency notes and coins; and

to manage the Currency Reserve,

regulatory functions, namely —

to regulate and supervise financial services business carried on in or from within the Islands in accordance with this Law and the regulatory laws;

to monitor compliance with the anti-money laundering regulations; and

to perform any other regulatory or supervisory duties that may be imposed on the Authority by any other law;

co-operative functions, namely, to provide assistance to overseas regulatory authorities in accordance with this Law; and

advisory functions, namely, to advise the Government on the matters set out in paragraphs (a) to (c) and, in particular, with regard to —

whether the regulatory functions and the co-operative functions are consistent with functions discharged by an overseas regulatory authority;

whether the regulatory laws are consistent with the laws and regulations of countries and territories outside the Islands; and

the recommendations of international organisations.

In performing its functions and managing its affairs, the Authority shall —

act in the best economic interests of the Islands;

promote and maintain a sound financial system in the Islands;

use its resources in the most efficient and economic way;

have regard to generally accepted principles of good corporate governance;

comply with this and any other law, including any regulations or directions made or given thereunder; and

have such ancillary powers as may be required to fulfil the functions set out in paragraphs (a) to (e).

In performing its regulatory functions and its co-operative functions, the Authority shall, in addition to complying with the requirements of subsection (2) —

endeavour to promote and enhance market confidence, consumer protection and the reputation of the Islands as a financial centre;

endeavour to reduce the possibility of financial services business or relevant financial business being used for the purpose of money laundering or other crime;

recognise the international character of financial services and markets and the necessity of maintaining the competitive position of the Islands, from the point of view of both consumers and suppliers of financial services, while conforming to internationally applied standards insofar as they are relevant and appropriate to the circumstances of the Islands;

recognise the principle that a burden or restriction which is imposed on a person, or on the carrying on of an activity, should be proportionate to the benefits, considered in general terms, which are expected to result from the imposition of that burden or restriction;

recognise the desirability of facilitating innovation in financial services business; and

recognise the need for transparency and fairness on the part of the Authority.

In exercising its co-operative functions, the Authority shall, in addition to complying with the requirements of subsection (2) —

have regard to the matters mentioned in section 50(4); and

comply with section 50(8).

Defined Terms

principal functionsmonetary functionsCurrency Reserveregulatory functionsanti-money laundering regulationsco-operative functionsadvisory functions

Cross References

Section 50 of Monetary Authority Actexternal
matters regarding co-operative functions

Monetary Authority Act

8 Parts