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Regulatory Authority Approves Insurance Licenses in St Helena
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The Financial Services Regulatory Authority (FSRA) has introduced new regulations aimed at strengthening the supervision of insurance companies operating in St Helena.
New Requirements for Insurance Licenses
Under the new rules, applicants seeking an insurance license must demonstrate that they do not have close links with another person that could prevent effective supervision by the FSRA. The regulatory body is required to determine each application within six months of receipt or 12 months if additional information is needed.
Licensing Process
- The FSRA has the discretion to grant licenses without conditions, subject to certain conditions, or refuse an application altogether.
- Failure to make a decision within the prescribed timeframe will result in the license being deemed refused.
Restrictions on Non-Compliant Businesses
In cases where a license is granted but not fully complied with, the FSRA may impose restrictions on the business. These restrictions can include:
- Requirements for the removal of officers
- Divestiture of shares
- Limitations on transactions and classes of business
Notice and Representation Period
The regulatory body must serve written notice to the affected business before imposing any restrictions, giving them 21 days (unless urgent) to make representations as to why such action should not be taken.
Review Process for Aggrieved Parties
In a significant development, the FSRA has introduced a review process for aggrieved parties. This allows individuals or businesses to seek a review of decisions made by the regulatory body, including:
- The imposition of conditions on license grants
- Restrictions
- Revocation of licenses
- Closure of representative offices
Key Changes
- New requirements for applicants seeking an insurance license
- Increased scrutiny on close links between applicants and other persons
- Regulatory body must determine applications within six months
- Failure to make a decision will result in deemed refusal of license
- Restrictions may be imposed on non-compliant businesses
- Review process introduced for aggrieved parties
St Helena’s Financial Services Sector
The financial services sector is a vital component of St Helena’s economy, with the insurance industry playing a significant role. The new regulations aim to enhance the stability and reputation of the sector, providing greater protection for consumers and promoting fair competition among licensed businesses.
For more information on the new regulations, please contact the FSRA directly or consult with your financial advisor.