Guidance Note for Licensed Insurers on Change of Majority Shareholder Controller

Summary

This guidance note from the Guernsey Financial Services Commission sets out its expectation that licensed insurers notify the Commission in writing when an existing shareholder controller proposes to become a majority shareholder controller. It defines what counts as a majority shareholder controller and clarifies the scope and limits of this expectation.

• Notification expectation: A licensed insurer should notify the Commission in writing as soon as it becomes aware of any proposal for an existing shareholder controller to become a majority shareholder controller.
• Definition: A majority shareholder controller is a person who, alone or with associates, is entitled to exercise or control 50% or more of the voting power in general meeting of the insurer or of any company of which the insurer is a subsidiary.
• Scope exclusion: This guidance does not apply to the cells of a Protected Cell Company.
• Relationship to statutory requirements: This guidance does not replace or modify any statutory controller notification requirements under the Insurance Business Law.

Key obligations

• Licensed insurers should notify the Commission in writing as soon as they become aware of any proposal for an existing shareholder controller to become a majority shareholder controller.

Applies to

licensed insurers

Deadlines

• as soon as it becomes aware: Timing for notifying the Commission of a proposal for an existing shareholder controller to become a majority shareholder controller