Insurance Appeal Tribunal Ruling - Cancellation of Registration & Prohibition Order - Swift Intermediaries Limited & David King (2025-02-25)

Summary

This is a ruling of the Bermuda Insurance Appeal Tribunal dismissing an appeal by Swift Intermediaries Ltd. and its sole director David King against enforcement action taken by the Bermuda Monetary Authority (BMA). The Tribunal upheld the BMA's decision to cancel Swift's registration as an insurance broker under section 42 of the Insurance Act 1978 and to issue a three-year prohibition order against Mr King under section 32H of the Act, finding the Authority's decisions were neither unlawful nor unjustified by the evidence.

• Basis for cancelling Swift's registration: Failure to pay fees due, failure to comply with registration conditions, failure to carry on business in accordance with sound insurance principles, and failure to satisfy minimum registration requirements (Insurance Act s.42(1)(b)(iv),(v),(viii),(ix)).
• Basis for King's prohibition order: Failure to file accurate and timely beneficial ownership changes and information (Companies Act ss.98H, 98I), failure to notify changes to controllers/officers (Insurance Act s.30J), failure to implement adequate corporate governance, breach of the Code of Conduct, and failure to maintain adequate accounting and business records (First Schedule of the Insurance Act).
• Legal test applied: The Tribunal confirmed the applicable test under section 44C(2) of the Insurance Act is whether the Authority's decision was unlawful or not justified by the evidence before it, not a full judicial review on Wednesbury grounds.
• Outcome: The appeal was dismissed; both the cancellation of Swift's registration and the three-year prohibition order against Mr King stand confirmed.

The ruling is primarily a record of a completed enforcement appeal rather than a source of new ongoing compliance requirements, but it illustrates the BMA's enforcement approach to beneficial ownership reporting, governance, fit-and-proper standards, and cooperation with investigations for insurance brokers and their directors.

Key obligations

• Swift Intermediaries Ltd.'s registration as an insurance broker under the Insurance Act 1978 is cancelled and it may not continue to carry on registered insurance broking business.
• David King is prohibited for a period of three years from acting as a director, controller, chief executive, officer, senior executive or associate of any business requiring registration under the Insurance Act.

Applies to

insurance brokers, registered persons under the Insurance Act, directors and controllers of insurance registrants