Source: http://docplayer.net/7291032-Be-it-enacted-by-the-queen-s-most-excellent-majesty-by.html
Timestamp: 2017-12-18 20:49:26
Document Index: 81315662

Matched Legal Cases: ['ART 1', 'ART 2', 'ART 3', 'ART 4', 'ART 5', 'ART 6', 'art 1996', 'ART 7', 'ART 8', 'ART 9', 'ART 10']

BE IT ENACTED by the Queen s Most Excellent Majesty, by - PDF
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1 At a Tynwald held in Douglas, Isle of Man, the 21st day of October in the fifty-seventh year of the reign of our Sovereign Lady ELIZABETH THE SECOND by the Grace of God of the United Kingdom of Great Britain and Northern Ireland and of Her other Realms and Territories Queen, Head of the Commonwealth, Defender of the Faith, and in the year of our Lord two thousand and eight, before the Council and Keys. AN ACT to re-enact with amendments certain enactments relating to the regulation of persons carrying on insurance business and the regulation of insurance managers and insurance intermediaries; and for connected purposes. BE IT ENACTED by the Queen s Most Excellent Majesty, by and with the advice and consent of the Council and Keys in Tynwald assembled, and by the authority of the same, as follows: PART 1 REGULATORY OBJECTIVES 1. The regulatory objectives are (a) securing an appropriate degree of protection for policyholders; Regulatory objectives 1986/24/2A(2) (b) the maintenance of confidence in the Island s insurance industry in the Island and elsewhere; and (c) the reduction in the extent to which it is possible for any insurance business to be used in connection with the commission of financial crime. 2. (1) The Supervisor shall exercise functions under this Act in a way (a) which is compatible with the regulatory objectives set out in section 1; and Duty to promote regulatory objectives 1986/24/2A(1) and (3)
2 2 (b) which the Supervisor considers most appropriate for the purpose of meeting those objectives. (2) In exercising functions, the Supervisor shall have regard to (a) the need to balance the regulatory objectives; (b) the international character of the insurance industry and its markets and the desirability of maintaining the competitive position of the Island; (c) the responsibilities of insurers; (d) the need to use resources in an efficient and economic manner; (e) the need to promote public understanding of the insurance industry; and (f) the desirability of insurers (i) being aware of the risk of their businesses being used in connection with the commission of financial crime; (ii) taking appropriate measures (in relation to administration and employment practices, the conduct of transactions and otherwise) to prevent financial crime, facilitate its detection and monitor its incidence; and (iii) devoting adequate resources to the matters mentioned in sub-paragraph (ii). Insurance and Pensions Authority 1986/24/1; 2000/14/Sch 1 PART 2 ADMINISTRATION 3. (1) The Authority shall exercise the functions conferred on it by this Act. (2) Schedule 1 has effect in relation to the Authority and its functions under this Act. Insurance and Pensions Supervisor 1986/24/2 [c.14] 4. The Supervisor (a) is charged with the general administration of this Act and the Retirement Benefits Schemes Act 2000; and
3 (b) shall exercise such other functions as are conferred on the Supervisor by any enactment. 3 PART 3 AUTHORISATION OF INSURERS 5. (1) An authorised insurer is a person authorised by the Supervisor under section 8 to carry on, and hold itself out as carrying on, insurance business in or from the Island. (2) Insurance business may be carried on in or from the Island Authorised insurers 1986/24/3(1) and (3) (a) by an authorised insurer; (b) by a person who is the holder of a permit issued under section 22 (foreign insurers); (c) by a person who is exempted by regulations from the requirement to be an authorised insurer or to hold a permit issued under section 22; (d) by a person who carries on a class of insurance business which is exempted by regulations from the requirement to be carried on by a person specified in this section; or (e) by the Government or by a person who is not an authorised insurer but who is acting on behalf of the Government. 6. (1) Applications for authorisation to carry on an insurance business shall be made in writing to the Supervisor. (2) An applicant shall be a company or a person or class of persons specified in regulations. Application for authorisation 1986/24/4 and 5(a) (3) An applicant shall provide the Supervisor with such documents and information as may be (a) prescribed; or (b) required by the Supervisor. 7. The Supervisor shall not authorise an applicant under section 8 if the applicant (a) does not satisfy the Supervisor that the controller, directors and chief executive (if any) of the applicant are fit and proper persons; Circumstances in which authorisation will not be granted 1986/24/5(b) to (d)
4 4 (b) does not satisfy the Supervisor that it has (i) an appropriate level of management in the Island; or (ii) appointed a registered insurance manager in the Island, with adequate experience of the insurance business carried on; or (c) does not comply with the criteria contained in directions issued by the Supervisor. Authorisation 1986/24/6(1) 8. In relation to every application for authorisation, the Supervisor shall (a) authorise the applicant in writing to carry on, subject to such conditions as the Supervisor may impose, an insurance business; or (b) refuse the application. Alteration of conditions of existing authorisations 1986/24/6(2) 9. Where an authorisation has been granted under section 8 the Supervisor may, at any time (a) make such authorisation subject to conditions; (b) vary or revoke any condition. Withdrawal of authorisation in respect of new business 1986/24/9(1) and (2) 10. (1) The Supervisor may at any time withdraw any authorisation, but only to the extent that the authorised insurer concerned shall cease to be authorised to effect new contracts of insurance. (2) Withdrawal of authorisation under this section shall not prevent an insurer from effecting a contract of insurance in pursuance of a term of a subsisting contract of insurance. Statement of reasons 1986/24/ 6(3),(4) & (6) and 9(3) & (5) 11. (1) The Supervisor shall give written notice to the authorised insurer of any decision to exercise the powers conferred by section 9 or 10(1) and such notice shall contain a statement of reasons for the decision. (2) Except where the Supervisor is satisfied that urgent action is necessary, a notice under subsection (1) shall be served on the insurer not less than 8 weeks before such powers are exercised.
5 (3) Subsection (2) shall not apply if the powers are exercised with the consent of the insurer concerned. (4) When the Supervisor exercises any powers under section 9 or 10(1) the Supervisor shall, as soon as practicable, report the fact to the Authority. (5) When the Supervisor exercises any powers under section 9 or 10(1) the Supervisor may require the insurer to give notice of such exercise in such manner and to such persons as the Supervisor may require. 5 PART 4 REQUIREMENTS FOR AUTHORISED INSURERS Chapter I Solvency, accounts and audit 12. Every authorised insurer shall maintain a margin of solvency of such amount as may be prescribed by or determined in accordance with regulations. 13. (1) If the margin of solvency of an authorised insurer falls below such amount as may be prescribed by or determined in accordance with regulations, the insurer shall at the request of the Supervisor submit to the Supervisor a short-term financial scheme. (2) A scheme under subsection (1) shall be submitted within 30 days of the request of the Supervisor, or such longer period as the Supervisor may permit. Solvency margins 1986/24/17(1) Consequences of not meeting solvency margin 1986/24/17(2) to (6) (3) If the Supervisor considers the scheme (or the scheme as previously modified) inadequate the insurer shall propose modifications to it to the Supervisor. (4) Where an insurer is required to maintain separate margins in respect of its long-term business and its other insurance business, subsection (1) shall have effect as if any reference to the margin of solvency of the insurer is a reference to the aggregate of those margins. (5) A scheme submitted under subsection (1) may include proposals for (a) the appointment of a special manager acceptable to the Supervisor; or (b) the discontinuance, either in whole or in part, of the insurer s business.
6 6 (6) An insurer shall give effect to any scheme accepted by the Supervisor. [XIII p.235] (7) If an authorised insurer is unable or fails to submit a scheme which is acceptable to the Supervisor, the insurer shall be deemed to be unable to pay its debts for the purposes of section 162 or 307 of the Companies Act 1931 (as the context requires). Accounts 1986/24/12 [VIII p.327] [c.19] [c.13] 14. (1) Unless regulations made in accordance with subsection (2) provide for an alternative system of accounting, the provisions of the Partnership Act 1909, the Companies Acts 1931 to 2004, the Limited Liability Companies Act 1996 and the Companies Act 2006 relating to accounts shall have effect in their application to authorised insurers subject to this Act and to regulations made under this Act. (2) Regulations may provide for authorised insurers to be subject to a system of accounting that shall be adopted in place of that provided for in subsection (1) and for this purpose may require compliance with standards or the adoption of practices recommended by a body specified in the regulations, and may in particular require compliance with standards or the adoption of practices recommended by that body from time to time (that is, after as well as before the making of the regulations). (3) A copy of the audited annual accounts of every authorised insurer shall be produced to the Supervisor within 21 days after the date of the meeting at which the accounts were approved by the board of directors and in any event within 6 months after the close of the year to which they relate. (4) Such statements, reports, certificates and information as may be required by regulations made under this Act, or required by any other enactment to be annexed or attached to the annual accounts for any purpose shall be produced to the Supervisor at the same time as the annual accounts are submitted. (5) The Supervisor may exempt in writing an insurer specified in the exemption from any provision contained in regulations made under this Act relating to accounts. Auditor 1986/24/ (1) Every authorised insurer shall appoint a person as auditor to the insurer in accordance with section 29. (2) An authorised insurer shall give notice in writing to the Supervisor immediately it receives notice of any resolution
7 intended to be moved at the insurer s annual general meeting to appoint as auditor a person other than the retiring auditor or providing expressly that a retiring auditor shall not be appointed. (3) Where, for any reason, the appointment of an auditor comes to an end the insurer and the auditor shall, not more than 14 days after the termination, each give notice in writing to the Supervisor of the reasons for the termination. 7 Chapter II General requirements that apply to all authorised insurers 16. An authorised insurer shall not carry on any activities, in the Island or elsewhere, otherwise than in connection with or for the purpose of its insurance business. 17. Every authorised insurer shall (a) have an appropriate level of management in the Island; or Restriction of business to insurance 1986/24/18 Management 1986/24/19 (b) appoint a registered insurance manager in the Island, with adequate experience of the insurance business carried on. Chapter III Requirements that apply to all insurers carrying on long-term business 18. (1) Every authorised insurer carrying on long-term business shall appoint as actuary to the insurer a person who is qualified in accordance with subsection (2). Actuary 1986/24/13 (2) A person shall be qualified for appointment under subsection (1) if (a) that person (i) is a Fellow of the Institute of Actuaries; (ii) is a Fellow of the Faculty of Actuaries; or (iii) satisfies the Supervisor that such person has some other actuarial qualification of similar standing; and
8 8 (b) the Supervisor is satisfied that such person has experience that fits such person to undertake the functions of an actuary under this Act. (3) No appointment shall be made under subsection (1) unless a written notice containing such particulars as may be prescribed is served on the Supervisor by the insurer concerned not less than 28 days before the appointment or such shorter period as the Supervisor may agree in writing. (4) If it appears to the Supervisor that a person is not a fit and proper person to be appointed as actuary under subsection (1), the Supervisor may direct that such person shall not, without the written consent of the Supervisor, be appointed as actuary. (5) If it appears to the Supervisor that an appointed actuary of an authorised insurer carrying on long-term business is not a fit and proper person to continue as such, the Supervisor may direct that such person shall not, without the written consent of the Supervisor, continue as appointed actuary. (6) The Supervisor shall give written notice to the person concerned of any decision to make a direction under this section. (7) Except where the Supervisor is satisfied that urgent action is necessary, the notice under subsection (6) shall be served on the person not less than 28 days before the date on which the direction is to take effect. (8) Any consent by the Supervisor under subsections (4) or (5) may be (a) given subject to conditions; (b) varied from time to time; or (c) revoked at any time, and the Supervisor shall give written notice to the person concerned of any decision to exercise the powers conferred by paragraph (a), (b) or (c). (9) No person shall accept or continue in any appointment referred to in subsection (4) or (5) in contravention of a direction under this section. (10) It is the duty of an authorised insurer carrying on longterm business to take care not to appoint or continue the appointment of a person in contravention of a direction under this section.
9 (11) Whenever an appointment under subsection (1) comes to an end the insurer shall (a) within 14 days of the termination of the appointment, notify the Supervisor in writing of the termination and the reason for the termination; (b) satisfy the Supervisor that appropriate arrangements have been made to cover any absence of an appointed actuary; and (c) as soon as practicable following the termination, make a new appointment under subsection (1). (12) An insurer which fails to comply with subsection (11)(b) shall not effect any new long-term insurance contracts until a new appointment is made. (13) Whenever an appointment under subsection (1) comes to an end the person ceasing to be the appointed actuary shall serve a written notice on the Supervisor containing such particulars as may be prescribed within 14 days of such cessation. (14) The Supervisor may appoint a person qualified in accordance with subsection (2) as actuary to an insurer who has failed to make an appointment under subsection (11)(c) and such appointment shall be deemed to have been made by the insurer (1) All receipts of an authorised insurer s long-term business shall be carried to, and form part of, a special fund with an appropriate name (in this Act referred to as a long-term business fund ). (2) Every authorised insurer carrying on long-term business shall keep its accounts in respect of such business separate from any accounts kept in respect of any other business. Assets attributable to long-term business 1986/24/15(1) to (3) (3) Every authorised insurer shall maintain books of account and other records such that (a) the assets in its long-term business fund; and (b) the liabilities of its long-term business, can be readily identified at any time. 20. (1) Subject to subsection (2), the assets in an authorised insurer s long-term business fund shall be applicable only for the purposes of that business notwithstanding any arrangement for its subsequent repayment out of receipts of business other than long-term business. Use of long-term business assets 1986/24/15(4) to (8)
10 10 (2) The restriction imposed by subsection (1) shall not apply to so much of those assets as are certified by the actuary to the insurer to exceed the extent (as so certified) of the liabilities of the insurer s long-term business. (3) No transfer of assets from the long-term business fund, other than a transfer in accordance with subsection (1), shall be effected without (a) the authority of a resolution of the directors of the insurer; and (b) the written consent of the actuary to the insurer. (4) Any mortgage, charge or lien shall be void to the extent to which it contravenes subsection (1). (5) No such insurer shall declare or pay a dividend to any person other than a policyholder unless (a) at a date within the year immediately preceding the declaration of the dividend, the value of the assets in its long-term business fund as certified by the actuary to the insurer, exceeds the extent (as so certified) of the liabilities of the insurer s long-term business; and (b) the amount of such dividend shall not be such as to cause the margin of solvency of the insurer to fall below the amount required under section 12. Chapter IV Transfer of insurance business Transfer of insurance business 1986/24/ (1) Schedule 2 (transfer of long-term business) shall have effect. (2) Regulations may provide for the provisions of Schedule 2 to have effect in relation to insurance business which is not long-term business subject to the modifications set out in the regulations. PART 5 FOREIGN INSURERS Foreign insurers 1986/24/25(1) 22. (1) Where the Supervisor, upon application by any person, is satisfied that the person is carrying on or has carried on any class of insurance business in a country other than the Island in accordance with the laws of that country, the Supervisor may issue a permit to that person.
11 (2) Sections 6(3), 8, 9, 10, 11, 16 and 17 shall have effect, with the necessary modifications, in relation to applicants for permits, permits, and persons who are the holders of permits issued under this section as they apply to applicants for authorisation, authorisations and authorised insurers. (3) Regulations may direct that any provision of this Act or any regulations made under this Act shall apply to persons who are the holders of permits issued under this section, subject to such exceptions, adaptations and modifications as may be specified. 11 PART 6 INSURANCE MANAGERS AND INSURANCE INTERMEDIARIES Chapter I Insurance Managers 23. (1) A person may, in the course of a business carried on in or from the Island, act as and hold itself to be an insurance manager for, or in relation to, an insurer, if that person is (a) registered in the register of insurance managers; or Insurance managers 1986/24/27(1), (1A) and (5) (b) exempted from registration by regulations. (2) A registered insurance manager shall not carry on any activities, in the Island or elsewhere (a) otherwise than in connection with or for the purpose of that person s business as an insurance manager; (b) unless the activity is an activity prescribed by regulations. (3) Where a person carries on a business which in any respect is or in the opinion of the Supervisor appears to be of a similar character to the business carried on by an insurance manager, that person upon a declaration made by the Supervisor in writing shall be subject to the provisions of this section and shall be deemed to be acting as an insurance manager. Chapter II Insurance Intermediaries 24. A person may, in the course of a business carried on in or from the Island, act as and hold itself out to be an insurance Insurance intermediaries 1996/4/1(1)
12 12 intermediary in respect of the effecting or carrying out of contracts of insurance which are not investments within the meaning of the Financial Services Act 2008 if that person is (a) registered in the register of insurance intermediaries; or (b) exempted from registration by regulations. Registration under this Part 1996/4/2; 1986/24/27(2) & (4); 1996/4/1(7) Chapter III Common provisions 25. (1) Applications for registration under this Part shall be made in writing to the Supervisor. (2) An applicant for registration under this Part shall provide such documents and information as may be required by the Supervisor. (3) The Supervisor shall not register an applicant unless the Supervisor is satisfied that (a) the applicant is a fit and proper person; (b) in the case of an applicant which is a body corporate, its controller, directors and chief executive (if any) are fit and proper persons; (c) the applicant has an appropriate level of management in the Island with adequate experience of the applicant s business; and (d) the applicant (i) has effected a policy of professional indemnity insurance in a prescribed form indemnifying the applicant; or (ii) where the application is for registration as an insurance manager and the applicant is a company which is to act only as insurance manager for associate companies, is otherwise indemnified by an associate company, to such sum, in such manner, in respect of such matters, and valid for such minimum period as may be prescribed. (4) The Supervisor may refuse to register any applicant for registration if the Supervisor thinks it proper to do so.
13 13 (5) The Supervisor may at any time (a) make the continued registration of a registered insurance manager or registered insurance intermediary subject to conditions; (b) vary or revoke any conditions imposed. (6) No contract shall be void or unenforceable, and no right of action in civil proceedings in respect of any loss shall arise, by reason only of the failure of a person to be a registered insurance intermediary under this Act. 26. (1) The Supervisor may at any time (a) cancel the registration of a registered insurance manager or a registered insurance intermediary; (b)where a class of insurance intermediaries is exempted from registration under this Act, cancel the exemption so far as it applies to a particular person; Cancellation or restriction 1996/4/4; 1986/24/27(4); 1996/4/2(4) (c) direct a registered insurance manager not to provide management services to insurers to whom it was not providing management services before the direction was made; or (d) direct a registered insurance intermediary not to act as insurance intermediary in respect of contracts of insurance which are effected following the direction. (2) The Supervisor shall give to the manager or intermediary concerned written notice of intention to cancel the registration or exemption or to make a direction (as the case may be), and such notice shall include a statement of reasons for the proposed cancellation or direction. (3) Except where the Supervisor is satisfied that urgent action is necessary, a notice under subsection (2) shall be served on the manager or intermediary concerned not less than 8 weeks before the date on which the registration or exemption is to be cancelled or the direction is to be made. (4) Subsection (3) shall not apply where the manager or intermediary consents to the cancellation or making of the direction. (5) When the Supervisor exercises any powers under this section the Supervisor shall, as soon as practicable, report the fact to the Authority.
14 14 (6) Where a registration or exemption has been cancelled or a direction has been made under this section, the manager or intermediary concerned shall, if required by the Supervisor, give notice of the cancellation or direction in such manner and to such persons as the Supervisor may direct. (7) Registration of a registered insurance intermediary shall expire on the anniversary of such registration unless previously cancelled or suspended. Winding up of insurance managers and insurance intermediaries 1996/4/10A [c.13] [c.19] [XIII p.235] 27. (1) The Supervisor may present a petition for the winding up of any insurance manager or insurance intermediary that is a company in accordance with the Companies Acts 1931 to 2004, the Companies Act 2006 or the Limited Liability Companies Act 1996, as appropriate. (2) A petition under subsection (1) may be presented on the ground (a) that the company is unable to pay its debts within the meaning of section 162 or section 307 of the Companies Act 1931 (as the context requires); (b) that the company has failed to satisfy an obligation to which it is or was subject by virtue of this Act; (c) that the company has carried on in business otherwise than in accordance with this Part; (d) that the company, being under a statutory obligation with respect to the keeping of accounting records, has failed to satisfy that obligation or to produce records kept in satisfaction of that obligation and that the Supervisor is unable to ascertain its financial position; or (e) that it is expedient in the public interest that the company should be wound up. PART 7 CONNECTED PERSONS Persons to whom this Part applies 28. (1) Subject to subsection (2), this Part applies to (a) an authorised insurer; (b) a registered insurance manager; and (c) a registered insurance intermediary,
15 and the expression a person to whom this Part applies shall be construed accordingly. (2) The Authority may by regulations exempt (a) a person or class of persons to whom this Part would otherwise apply; and (b) any other person or class of persons, from a requirement to comply with a provision of this Part (1) No person to whom this Part applies shall appoint a person as director, chief executive, auditor or manager of that person, nor shall a person become controller of, or insurance manager of, a person to whom this Part applies, unless a written notice containing such particulars as may be prescribed is served on the Supervisor by Connected persons 1986/24/20 (a) in the case of a director, chief executive, auditor or manager, the person to whom this Part applies; or (b) in the case of a controller or insurance manager, the proposed controller or manager, not less than 28 days before the event or such shorter period as the Supervisor may agree in writing. (2) If it appears to the Supervisor that any person is not a fit and proper person (a) to be appointed as a director, chief executive, auditor or manager; or (b) to become a controller or insurance manager, of a person to whom this Part applies, the Supervisor may direct that such person shall not, without the written consent of the Supervisor, be appointed as such a director, chief executive, auditor or manager or become such a controller or insurance manager. (3) If it appears to the Supervisor that any (a) director, chief executive, auditor or manager; or (b) controller or insurance manager, of a person to whom this Part applies, is not a fit and proper person to continue as such, the Supervisor may direct that such person shall not, without the written consent of the Supervisor, continue
16 16 as such a director, chief executive, auditor, manager, controller or insurance manager. (4) The Supervisor shall give written notice to the person concerned of any decision to make a direction under this section. (5) Except where the Supervisor is satisfied that urgent action is necessary, the notice under subsection (4) shall be served on the person not less than 28 days before the date on which the direction is to take effect. (6) Any consent by the Supervisor under subsection (2) or (3) may be (a) given subject to conditions; (b) varied from time to time; and (c) revoked at any time, and the Supervisor shall give written notice to the person concerned of any decision to exercise the powers conferred by paragraph (a), (b) or (c). (7) No person shall (a) accept or continue in any appointment referred to in subsection (2)(a) or (3)(a); or (b) become or continue as a controller or insurance manager, in contravention of a direction under this section. (8) It is the duty of a person to whom this Part applies to take care not to appoint or continue the appointment of a person in contravention of a direction under this section. (9) In this section manager means (except in relation to references to an insurance manager) an individual employed by the insurer concerned who, under the immediate authority of a director or its chief executive (a) exercises managerial functions; or (b) is responsible for maintaining the accounts or other records of the insurer. (10) This section is additional to and not in derogation of any other enactment relating to the qualification, appointment or removal of directors or auditors.
17 Where a person ceases to be a director, chief executive, auditor, manager, controller or insurance manager of a person to whom this Part applies, a written notice containing such particulars as may be prescribed shall be served on the Supervisor within 14 days of such cessation by Notice of cessation 1986/24/20A(1) (a) in each case, the person to whom this Part applies; and (b) in the case of a person ceasing to be a chief executive, controller or insurance manager, the person ceasing to be the chief executive, controller or insurance manager (as the case may be). PART 8 SUPERVISION Chapter I Supervisor s powers 31. (1) The Supervisor may direct an authorised insurer in writing, to maintain in the Island, or transfer to and keep in the custody of a bank specified in the direction, assets of the insurer of such value and description as may be directed. Location of assets 1986/24/28 (2) No assets kept in the custody of a bank pursuant to a direction given under subsection (1) shall, so long as the direction is in force (a) be removed from the bank; or (b) be made the subject of any mortgage, charge or lien, except with the prior written consent of the Supervisor. (3) Any mortgage, charge or lien created by an authorised insurer in contravention of subsection (2) shall be void against the liquidator and any creditor of the insurer. 32. Schedule 3 (insolvency and winding up) shall have effect. 33. (1) The Supervisor may require an insurer, insurance manager, insurance intermediary or any other person involved in the management or administration of an insurer, insurance manager or insurance intermediary to take such action as appears to the Supervisor to be necessary to fulfil the regulatory objectives set out in section 1 and, but without prejudice to the generality of that power Winding up of insurers 1986/24/23 Residual power to impose requirements 1986/24/22F
18 18 (a) for the purpose of protecting policyholders or potential policyholders of an insurer against the risk that such insurer may be unable to meet its liabilities; (b) in the case of long-term business, to fulfil the reasonable expectations of policyholders or potential policyholders; or (c) for the purpose of ensuring that the criteria of sound and prudent management are fulfilled with respect to a person referred to in subsection (1). (2) The power to make a requirement under this section is additional to the other provisions of this Act, any public document under it and any powers of the Supervisor under this Act. Publication of information and advice 1986/24/24A 34. (1) The Supervisor may publish information or give advice, or arrange for the publication of information or the giving of advice, in such form and manner as the Supervisor considers appropriate with respect to (a) the operation of this Act and any public document made under it, including in particular (i) the rights of any policyholders; (ii) the duties of insurers, insurance managers, insurance intermediaries and any other person involved in the management or administration of an insurer, insurance manager or insurance intermediary; and (iii) the steps to be taken for enforcing those rights or complying with those duties; (b) any other matters about which it appears to the Supervisor to be desirable to publish information or give advice for the protection of policyholders or any class of policyholders. (2) The Supervisor may offer for sale copies of information published under this section and may, if the Supervisor thinks fit, make a reasonable charge for advice given under this section at any person s request. (3) This section shall not be construed as authorising the disclosure of information the publication of which is prohibited under paragraph 2 of Schedule 6 in any case in which it could not be disclosed apart from the provisions of this section.
19 (1) The Supervisor may issue a public statement concerning a person if the Supervisor has reasonable grounds to believe that (a) the person is in contravention of any provision of this Act or of any regulations made under it; Public statements 1986/24/24B; 1996/4/11 (b) the person is in contravention of any condition imposed on, direction given to or requirement made of such person under this Act or any regulations made under it; or (c) it is desirable to make the statement for the protection of any person or any class of persons. (2) The Supervisor may pass information about an insurance intermediary to any insurer if it appears to the Supervisor to be desirable to pass the information for the protection of any client of the intermediary. (3) Before issuing a public statement under this section the Supervisor shall send to the person concerned written notice of the proposed statement. (4) Except where the Supervisor is of the opinion that immediate action is necessary, a notice under subsection (3) shall be sent not less than 7 days before issuing a public statement under subsection (1) or passing information under subsection (2). Chapter II Inspection and investigation 36. Schedule 5 (inspection and investigation) shall have effect. Chapter III Inspection and investigation 1986/24/21 Civil penalties 37. (1) A penalty of such amount as the Supervisor considers appropriate may be imposed on a person by the Supervisor if the Supervisor considers that the person has acted in contravention of a requirement imposed on that person by or under this Act. Civil penalties 1986/24/22G (2) If a penalty is imposed under subsection (1) and the Supervisor considers that the relevant contravention was caused or permitted by a controller, director, chief executive or senior manager of the person on whom the penalty is imposed, the Supervisor may in addition impose a penalty of such amount as
20 20 the Supervisor considers appropriate on the controller, director, chief executive or senior manager. (3) Where the Supervisor intends to impose a penalty, the Supervisor shall give notice in writing to the person concerned giving particulars of the alleged contravention, the amount of the penalty and the reasons for the decision. (4) If the person concerned does not appeal the decision under section 45, the penalty shall be paid to the Treasury within such period as may be prescribed. (5) If the person concerned does appeal the decision under section 45 and on the determination of the appeal a penalty of any amount is payable, that penalty shall be paid to the Treasury within 14 days of the determination of the appeal. (6) Where the person concerned fails to pay the penalty, it may be collected by the Treasury as a civil debt due to it. (7) Any amount received in respect of a penalty levied under this section shall be paid into and form part of the General Revenue of the Island. (8) This section is in addition to and not in derogation of any other provision of this Act that confers a power or provides for a contravention to be an offence. (9) In this section, senior manager means (a) an employee of the person on whom the penalty was imposed who, jointly with the chief executive, is responsible under the immediate authority of the directors for the conduct of the whole of the insurance business of the person on whom the penalty was imposed; (b) an employee of the person on whom the penalty was imposed who, either alone or jointly with others, is responsible under the immediate authority of the directors for the conduct of any other aspect of the business of the person on whom the penalty was imposed (for example finance, marketing or compliance); (c) an employee of the person on whom the penalty was imposed, the controller of that person or an associate of that person, who is under the immediate authority of the controller or the directors of an associate, and, either alone or jointly with others, is responsible for the conduct of any such aspect of the business of the person on whom the penalty was imposed.
21 21 PART 9 SPECIAL REMEDIES 38. (1) If on the application of the Supervisor, the High Court is satisfied (a) that there is a reasonable likelihood that any person will contravene any provision of this Act or any regulations made under this Act; Injunctions 1986/24/28A (b) that any person has contravened any such provision and that there is a reasonable likelihood that the contravention will continue or be repeated; or (c) that any person has contravened any such provision and that there are steps that could be taken for remedying the contravention, the Court may grant an injunction restraining the contravention or, as the case may be, make an order requiring that person and any other person who appears to the Court to have been knowingly concerned in the contravention to take such steps as the Court may direct to remedy it. (2) Nothing in this section affects the right of any person other than the Supervisor or the Authority to bring proceedings in respect of the matters to which this section applies. 39. (1) Subject to section 41, the High Court may, on the application of the Supervisor, make an order under subsection (2) if satisfied Restitution orders 1986/24/28B (a) that profits have accrued to any person as a result of that person s contravention of any provision of this Act or any regulations made under this Act; or (b) that one or more policyholders have suffered loss or been otherwise adversely affected as a result of that contravention. (2) The Court may under this subsection order the person concerned to pay into court, or appoint a receiver to recover from that person, such sum as appears to the court to be just having regard (a) in a case within subsection (1)(a), to the profits appearing to the Court to have accrued; (b) in a case within subsection (1)(b), to the extent of the loss or other adverse effect; or
22 22 (c) in a case within subsection (1)(a) and (b), to the profits and to the extent of the loss or other adverse effect. (3) Any amount paid into Court by or recovered from a person in pursuance of an order under subsection (2) shall be paid out to such person or distributed among such persons as the Court may direct, being a person or persons appearing to the Court to have entered into transactions with that person as a result of which the profits mentioned in subsection (2)(a) have accrued to that person or the loss or adverse effect mentioned in subsection (2)(b) has been suffered. (4) On an application under subsection (1) the Court may require the person concerned to furnish it with such accounts or other information as it may require for (a) establishing whether any and, if so, what profits have accrued to that person as mentioned in subsection (1)(a); and (b) determining how any amounts are to be paid or distributed under subsection (3), and the Court may require any such accounts or other information to be verified in such manner as it may direct. (5) Nothing in this section affects the right of any person other than the Supervisor or the Authority to bring proceedings in respect of the matters to which this section applies. Actions for damages 1986/24/28C 40. (1) Without prejudice to sections 38 and 39, a contravention of this Act or any regulations made under it shall, subject to section 41, be actionable at the suit of a person who suffers loss as a result of the contravention subject to the defences and other incidents applying to actions for breach of statutory duty. (2) Subsection (1) does not apply to a contravention of any condition or regulation relating to the financial resources of an insurer. (3) No contravention to which subsection (1) applies shall invalidate any transaction. Application of sections 39 and /24/28D 41. Sections 39 and 40 shall apply only to contraventions in respect of activities which constitute investment business activities within the meaning of the Financial Services Act 2008.
23 23 PART 10 SUPPLEMENTARY Chapter I General 42. (1) The Companies (Transfer of Domicile) Act 1998 shall have effect in relation to insurers which are bodies corporate subject to the modifications set out in Schedule 4. (2) Subsection (1) does not apply to insurers which are companies within the meaning of section 219(1) of the Companies Act (3) Regulations may provide for the provisions of Part XI of the Companies Act 2006 (continuation) to have effect in relation to insurers which are companies or foreign companies within the meaning of that Act subject to the modifications set out in the regulations. Continuation and discontinuation of certain insurers 1986/24/25A [c. 6] [c.13] 43. (1) The Authority may make regulations establishing schemes for compensating (a) policyholders in cases where persons who are or have been authorised insurers are unable or likely to be unable to satisfy civil liability claims of policyholders under their policies; (b) members of retirement benefits schemes in cases where a scheme which is or has been an authorised scheme under the Retirement Benefits Schemes Act 2000 is unable or likely to be unable to satisfy civil liability claims of members of the retirement benefits scheme. Compensation schemes 1988/16/21 ; 2000/14/40 [c.14] (2) Without prejudice to the generality of subsection (1), regulations may (a) provide for the administration of the scheme and the determination and regulation of any matter relating to its operation by such body as appears to the Authority to be appropriate; (b) establish a fund out of which compensation is to be paid; (c) provide for the levying of contributions from, or from any class of (i) persons who are or who have been authorised insurers; or
24 24 [c.14] (ii) retirement benefits schemes which are or have been authorised under the Retirement Benefits Schemes Act 2000, and otherwise for financing the compensation scheme and for the payment of contributions and other money into the fund; (d) specify the terms and conditions on which, and the extent to which, compensation is to be payable and any circumstances in which the right to compensation is to be excluded or modified; (e) provide for treating compensation payable under the scheme in respect of a claim against any person as extinguishing or reducing the liability of that person in respect of the claim and for conferring on the body administering the scheme a right of recovery against that person, being, in the event of that person s insolvency, a right not exceeding such right, if any, as the claimant would have had in that event; (f) contain incidental and supplementary provisions; and (g) contain transitional provisions, and in particular may provide that rights and liabilities under any existing nonstatutory compensation scheme shall be treated as rights and liabilities of the scheme established under the regulations. (3) Regulations may be made for the purpose of integrating any procedure for which provision is made by virtue of paragraph 2(e) into the general procedure on a winding-up or bankruptcy and may modify the enactments relating to such procedure for that purpose. Reasons for decisions 1986/24/29A 44. (1) This section applies in respect of all decisions that are subject to appeal under section 45 except decisions to which sections 11(1) or 26(2) apply. (2) The person making the decision shall give written notice stating the reason for the decision to the person in respect of whom the decision is made. Appeals to the Insurance Tribunal 45. (1) For the purposes of this Act there shall be a tribunal known as the Insurance Tribunal. (2) The Insurance Tribunal shall consist of
25 25 (a) a chairman appointed in accordance with the Tribunals Act 2006; and [c.1] (b) 2 members selected in accordance with regulations made under section 9(b) of the Tribunals Act 2006 from a panel appointed in accordance with that Act. (3) Any person who is aggrieved by a decision of the Supervisor or the Authority under this Act may appeal, in accordance with rules made under section 8 of the Tribunals Act 2006, to the Insurance Tribunal. (4) On the determination of an appeal under this section the Tribunal shall confirm, vary or revoke the decision in question. (5) Any variation or revocation of a decision shall not affect the previous operation of that decision or anything duly done or suffered under it. (6) Without prejudice to subsection (7), any decision of the Insurance Tribunal on an appeal under this section shall be binding on the Supervisor, the Authority and the applicant. (7) An appeal shall lie to the High Court, in accordance with rules of court, on a question of law from any decision of the Insurance Tribunal. 46. Schedule 6 (restrictions on disclosure of information) shall have effect. 47. (1) The prescribed fees shall be payable (a) by the applicant in respect of any application for authorisation under section 8; Restrictions on disclosure of information 1986/24/23A; 1986/24/24 Fees 1986/24/7; 1986/24/27A (b) by the applicant in respect of any application for a permit under section 22; (c) by each authorised insurer annually on such date in each year as may be prescribed; (d) by each holder of a permit issued under section 22 annually on such date in each year as may be prescribed; (e) by the applicant in respect of any application for registration as an insurance manager under section 25; (f) by each registered insurance manager annually on such date in each year as may be prescribed; and
26 26 (g) by the applicant in respect of every application for registration as an insurance intermediary under section 25, as the case may require. (2) Any unpaid fee under subsections (1) (c), (d) and (f) may be sued for by the Supervisor as a civil debt due to the Supervisor. Registers 1986/24/8; 1996/4/3 48. (1) The Supervisor shall keep registers of (a) authorised insurers; (b) the holders of permits issued under section 22; (c) insurance managers; and (d) insurance intermediaries, in such form and which shall contain such particulars as may be prescribed. (2) The registers shall be kept at the office of the Authority or such other place as may be prescribed. (3) The registers shall be public registers and shall be open to inspection at any time during the ordinary office hours of the Authority. Indemnity 1986/24/29; 1996/4/12; 2000/14/Sch1 49. (1) The Treasury, the Authority, the Insurance Tribunal, the Retirement Benefits Schemes Tribunal and the Financial Supervision Commission shall not, nor shall (a) the Supervisor or any officer, member or employee of the Treasury, the Authority, the Insurance Tribunal, the Retirement Benefits Schemes Tribunal or the Financial Supervision Commission; or (b) any other person acting on behalf of the Treasury, the Authority, the Insurance Tribunal, the Retirement Benefits Schemes Tribunal or the Financial Supervision Commission; or (c) any person acting pursuant to any authority conferred by the Authority, [c.14] [c.11] be liable in damages for, or in respect of, any act or matter done or omitted to be done in the exercise, or purported exercise, of the functions conferred by or under this Act, the Retirement Benefits Schemes Act 2000, the Insurance Companies (Amalgamations) Act 2006, any enactment wholly repealed by this Act or any orders or regulations made under any of those enactments unless the act or matter done or omitted to be done is shown to have been in bad faith.
27 27 (2) Subsection (1) does not apply so as to prevent the award of damages made in respect of an act or omission on the ground that the act or omission was unlawful as a result of section 6(1) of the Human Rights Act [c.1] 50. (1) The Authority may make such regulations as it considers are necessary or desirable to carry this Act into effect and, without prejudice to the generality of that power, such regulations may provide for any of the matters mentioned in Schedule 7. Regulations 1986/24/32; 1996/4/13 (2) Regulations may provide for their contravention to be an offence. (3) Before making any regulations under this section the Authority shall consult with the Treasury and such other organisations and persons as appear to it to be likely to be affected by the proposed regulations. (4) Regulations shall be laid before Tynwald as soon as practicable after they are made, and if Tynwald at the sitting at which the regulations are laid, or at the next following sitting, resolves that they shall be annulled, the regulations shall cease to have effect from that time. 51. (1) The Supervisor may issue Guidance Notes for the purpose of providing binding guidance with respect to (a) this Act and any public document made under it; Guidance Notes 1986/24/24C (b) the duties of insurers, insurance managers, insurance intermediaries and any other person involved in the management or administration of an insurer, insurance manager or insurance intermediary; (c) the rights of policyholders; (d) the steps to be taken for enforcing those rights or complying with those duties; (e) any matters about which it appears to the Supervisor to be desirable to give guidance for the protection of policyholders or any class of policyholders; (f) any matter falling within the regulatory objectives under section 1 about which it appears to the Supervisor to be desirable to give guidance; (g) any matter in respect of which regulations may be made under this Act.
28 28 (2) The Supervisor shall take such supervisory action as the Supervisor believes to be appropriate and proportionate in the event of a failure on the part of an insurer, insurance manager, insurance intermediary or any other person involved in the management or administration of an insurer, insurance manager or insurance intermediary to observe any provision of Guidance Notes. (3) Subject to subsections (2) and (5), a failure on the part of any person to observe any provision of Guidance Notes shall not of itself render that person liable to civil or criminal proceedings in any court. (4) Where in any criminal or civil proceedings or civil penalty proceedings under any enactment, a person is alleged to have been in contravention of any provision of any enactment being an enactment in respect of which there were Guidance Notes at the time of the alleged contravention, any provision of the Guidance Notes which appears to be relevant to the contravention shall be admissible in evidence in the proceedings. (5) In this section, supervisory action means the exercise of such power (including the imposition of a civil penalty under section 37) as is permitted by any enactment in or under this Act. (6) Guidance Notes shall not be issued or withdrawn before the Supervisor has consulted such persons or bodies as appear to the Supervisor to be appropriate. (7) Guidance Notes under this section shall be laid before Tynwald as soon as practicable after being issued. Chapter II Offences and penalties False statements, etc 1986/24/30 Offences 1986/24/31; 1986/24 20A(3); 1996/4/ No person shall (a) cause or permit to be included in any book or document provided or produced to the Authority or the Supervisor, a statement which that person knows to be false in a material particular or recklessly causes or permits to be so included any statement which is false in a material particular; or (b) in purported compliance with any provision of this Act or a requirement imposed under any such provision, provide information which that person knows to be false in a material particular or recklessly provides information which is false in a material particular. 53. (1) An authorised insurer commits an offence if it fails to comply with
PROJET DE LOI. The Insurance Business (Bailiwick of Guernsey) Law, 2002. Consolidated text. States of Guernsey 1
PROJET DE LOI ENTITLED The Insurance Business (Bailiwick of Guernsey) Law, 2002 * [CONSOLIDATED TEXT] NOTE This consolidated version of the enactment incorporates all amendments listed in the footnote