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Regulatory Authority Grants Licences to Insurance Businesses
The St Helena Regulatory Authority has announced its intention to provide services to customers as specified in a Directive, including granting licences to insurance businesses.
New Regulations for Insurance Business Licenses
According to the authority’s new regulations, applicants for insurance business licenses must demonstrate that they do not have close links with another person that could prevent effective supervision. The authority must also determine each application within six months of receipt or, if additional information is required, within six months of compliance with section 8(4).
- The Regulatory Authority has the discretion to grant a licence without conditions, subject to conditions it considers appropriate, or refuse to grant a licence.
- If the authority fails to make a decision within the specified timeframe, the applicant may seek a review.
Goal of Regulation
In a statement, the Regulatory Authority emphasized that its goal is to ensure the protection of depositors, investors, and creditors by maintaining a high level of supervision over insurance businesses operating in St Helena.
New Measures Aim to Enhance Supervision
The authority has also introduced new measures aimed at enhancing supervision over insurance businesses. These measures include the power to impose restrictions on licensed businesses that fail to comply with regulatory requirements.
- Under the new regulations, the Regulatory Authority may require a licensed business to:
- Remove an officer
- Divest itself of shares or assets
- Refrain from undertaking certain transactions
- Take other actions deemed necessary for the protection of depositors, investors, and creditors
Review Process
The authority has also introduced a review process, allowing aggrieved parties to seek a review of its decisions. This includes:
- Applications for insurance business licenses
- Restrictions imposed on licensed businesses
- Revocation of licences
- Closure of representative offices
- Issuance of notices or orders under section 12
- Making of orders under section 13
Public Statement Released
The Regulatory Authority has also issued a public statement announcing the restriction or revocation of a particular licence, citing it as being in the public interest. The authority aims to maintain transparency and ensure that all stakeholders are informed of changes affecting insurance businesses operating in St Helena.