SPC-INS 2 - Notification of Intent to Terminate a Segregated Portfolio (Insurance)

Summary

This is Form SPC-INS2, the prescribed notification form used by a BVI insurer segregated portfolio company (SPC) to tell the BVI Financial Services Commission of its intent to terminate one or more segregated portfolios, as required under Regulation 9 of the Segregated Portfolio Companies (Insurance) Regulations, 2018. It must be completed and filed by the insurer SPC's insurance manager, together with supporting documentation, before termination proceeds.

• Who files: The BVI insurer SPC's insurance manager (appointed under section 23(1) of the Insurance Act) must complete and submit the form on behalf of the SPC.
• Required attachments: Proposed amendments to the Memorandum and Articles of Association (where segregated portfolios are detailed in constitutional documents), board resolution(s) approving the termination, and the current Schedule attached to the SPC's insurance licence.
• Timing: The notification must be filed at least 7 days before the intended termination date, unless the Commission approves a shorter period.
• Segregated Portfolio Sheet: A separate appendix sheet (Parts A to F, or A to C, E, F plus D if terminating in under 7 days) must be completed for each segregated portfolio being terminated, covering the proposed termination date, rationale for expedited termination if applicable, reasons for termination, and confirmations regarding policyholders, creditors, outstanding liabilities and prejudice to investors/creditors.
• Never-commenced-business portfolios: If a segregated portfolio has never commenced business, the SPC must confirm it will notify the Commission of any reinstatement in accordance with section 134A(4) of the BVI Business Companies Act and regulation 12 of the SPC (Insurance) Regulations, and give reasons why the portfolio never commenced business.
• Declaration: The insurance manager must declare the information is true and accurate, and acknowledges that false or misleading information may lead to enforcement action or denial of applications.

This is an administrative form rather than a standalone rule; it operationalises the notification obligation already imposed by the 2018 Regulations for any BVI insurer SPC seeking to wind down one or more of its segregated portfolios.

Key obligations

• The insurance manager of a BVI insurer SPC must file the completed SPC-INS2 notification, with all sections completed, before terminating any segregated portfolio.
• The notification must be filed at least 7 days prior to the intended termination date, unless the Commission approves a shorter period.
• The filer must attach proposed constitutional document amendments (where applicable), board resolution(s) approving the termination, and the current insurance licence Schedule.
• A separate Segregated Portfolio Sheet must be completed for each segregated portfolio being terminated, including confirmations regarding policyholders, creditors, outstanding liabilities and non-prejudice to investors and creditors.
• If termination is proposed within less than 7 days of notification, the filer must provide a rationale (Part D of the Segregated Portfolio Sheet).
• For a segregated portfolio that never commenced business, the SPC must undertake to notify the Commission of any future reinstatement under section 134A(4) of the BVI Business Companies Act and regulation 12 of the SPC (Insurance) Regulations, and state the reasons the portfolio never commenced business.
• The insurance manager must sign a declaration confirming the accuracy of the information and documentation submitted.

Applies to

BVI insurer segregated portfolio companies (SPCs), insurance managers

Deadlines

• at least 7 days prior to the intended date of termination: Deadline for filing the SPC-INS2 notification before terminating a segregated portfolio, unless the Commission approves a shorter period.