These Regulations may be cited as the Insurance (Suitability of Key Persons) Regulations.
In these Regulations, unless the context otherwise requires—
include significant owners, board members, management and heads of control functions;
means a person registered under the Act and includes insurance groups; and
means a person who directly or indirectly holds more than ten per cent of the controlling or beneficial interest in a person licensed under the Act.
The purpose of these Regulations is to ensure that all key persons are suitable at all times to fulfil their respective roles and shall apply to persons registered under the Act and insurance groups.
A regulated entity shall put in place appropriate procedures and shall assess, as and when required, the suitability of key persons on the following grounds—
competence which shall be judged from the level of an individual’s professional qualifications, knowledge, skills and relevant experience;
financial soundness which shall be ascertained through an assessment of the source of financing and future access to capital; and
integrity which shall be demonstrated through evidence in character, personal behaviour and business conduct.
Where a regulated entity makes any changes or envisages circumstances that may adversely affect the suitability of a key person or where a key person resigns or is replaced, that regulated entity shall, within seven days of making the changes or resignation or replacement of that key person, notify the Authority giving reasons thereof.
A regulated entity shall not appoint any key person without prior written approval of the Authority.
A regulated entity shall duly fill and submit the fit and proper Form as specified in the Schedule to these Regulations when seeking approval for appointment of a key person.
A regulated entity shall at the point of seeking approval of appointment of key persons, submit a formal statement that each of the tests provided for under regulation 4 on competence, financial soundness and integrity has been performed and, where necessary, further investigations have been conducted.
Where the Authority determines non-compliance with the provisions of these Regulations, it may take any intervention prescribed in the Act and may also—
direct that a regulated entity takes appropriate remedial action;
reject, suspend or revoke the appointment of a key person;
prohibit from declaring and paying dividends;
withdraw or impose conditions on the business license taking into account the nature of the breach; and
take other action as may be deemed necessary.
The Authority may impose the following additional sanctions to significant owners who do not meet or no longer meet suitability requirements—
require them to dispose of their interests in the regulated entity within a specified period of time;
suspend the exercise of their corresponding voting rights;
nullify any votes cast or the possibility of their annulment; and
prohibit them from receiving dividends.