St Helena Regulatory Authority Cracks Down on Insurance Firms

The St Helena Regulatory Authority has introduced new measures to regulate insurance businesses operating in the territory, aimed at safeguarding the interests of depositors, investors, and creditors.

New Licensing Criteria

Under the revised regulations, the authority will grant licenses to insurance firms registered outside St Helena if they meet certain criteria:

• Hold an appropriate license to operate in their home country
• Demonstrate stringent control and oversight by the relevant authorities

Stricter License Revocation Rules

The authority has also introduced stricter rules for revoking licenses. A firm’s license can now be revoked if:

• They fail to commence business within 12 months
• They cease to operate due to bankruptcy, liquidation, or dissolution
• Other grounds include:
  • Non-compliance with regulations
  • Failure to disclose information
  • Breach of money laundering laws

Restrictions on Licenses

In addition, the authority can impose restrictions on licenses if a firm:

• Fails to comply with regulations
• Has insufficient resources
• Is likely to become unable to meet its obligations

Restrictions may include:

• Requirements for the removal of officers
• Divestment of shareholdings
• Prohibition on certain transactions

Notice and Representation

The authority will provide written notice to insurance firms before imposing restrictions or revoking their licenses, allowing them to make representations as to why such action should not be taken.

Immediate Effect and Review Process

The new regulations come into effect immediately. A review process has been established for aggrieved parties seeking to challenge decisions made by the Regulatory Authority.