Insurance Business (Appointment of Manager) (Jersey) Order 2008

Summary

This Order supplements the Insurance Business (Jersey) Law 1996 by defining the specific circumstances in which the Jersey Financial Services Commission may apply to the Royal Court for the appointment of a manager to run all or part of an insurer's business. It does not itself impose new day-to-day compliance duties on insurers, but sets out the regulatory trigger points that can lead to a court-appointed manager taking control.

• Prescribed circumstances (Schedule): The Commission may seek a court-appointed manager where there is inadequate management (e.g. dishonesty, breach of fiduciary duty, insufficient resources, poor record-keeping, conflicts of interest, serious AML/CFT law breaches, or death/incapacity of a controller or director)
• Cessation without orderly wind-down: The insurer appears to have stopped carrying on business but has not wound up, liquidated, closed or transferred it properly
• Failure to handle claims: Persistent failure to examine policy holder claims or complaints
• Unauthorised business: The insurer is carrying on a class of insurance business for which it is not authorised under the Law
• Asset or record protection: A need to collect, protect or preserve business assets, records, or policy holder property
• Avoiding forced closure: A need to appoint a manager to prevent circumstances that could justify forced closure
• Compensation schemes: A need to appoint a manager to promote or implement a policy holder compensation scheme
• Non-compliance with regulatory directions: Failure to comply with a condition, notice of objection, or direction issued under specified Articles of the Law, warranting independent management

The Order is procedural and regulator-facing: it empowers the Commission's own enforcement option rather than creating new direct obligations on insurers, though the listed circumstances largely mirror conduct already required or prohibited under the Insurance Business (Jersey) Law 1996 and related AML/CFT legislation.

Applies to

insurers, persons carrying on insurance business under the Insurance Business (Jersey) Law 1996, policy holders

Related documents

• This document is made under Insurance Business (Jersey) Law 1996