Memorandum to Industry - Insurance Appeal Tribunal Regulations 2011 (2011-05-30)

Summary

This is a May 2011 memorandum from the Bermuda Monetary Authority notifying industry stakeholders about the forthcoming Insurance Appeal Tribunal Regulations 2011, which implement an appeal process created by 2006 amendments to the Insurance Act 1978. It explains the scope of the appeal mechanism and invites industry comment before the regulations are finalised.

• Appealable decisions: An appeal tribunal may be constituted to hear appeals against BMA decisions to cancel a registered person's registration, direct removal of a controller under section 32(2)(j), adjust an insurer's capital under section 6D, or object to a material change under section 30JA.
• Who can appeal: Both the registered person and a controller being removed may appeal the relevant decision.
• Legal basis: The Regulations are made under section 44D of the Insurance Act 1978 and are subject to negative resolution procedure; they mirror tribunal regulations under the Trusts (Regulation of Trust Business) Act 2001, the Investment Business Act 2003, and the Banks and Deposit Companies Act 1999.
• Open issue flagged: The memorandum notes that the appeal provisions as drafted do not appear to extend the right to appeal capital adjustments under section 6D to designated insurers, and flags this as a matter needing attention.
• Timing: The Ministry of Finance intended to make the Regulations by the end of June 2011.

The memorandum is a consultation notice rather than a binding rule itself; it seeks industry feedback on the draft Regulations before they are enacted.

Key obligations

• Industry stakeholders wishing to comment should forward comments to the Bermuda Monetary Authority by June 22, 2011.

Applies to

insurers, registered persons, controllers of registered persons, designated insurers

Deadlines

• June 22, 2011: Deadline for industry stakeholders to forward comments on the draft Insurance Appeal Tribunal Regulations 2011 to the BMA.
• end of June 2011: Target date by which the Ministry of Finance proposed to make the Regulations.