Application for Licensing of Insurance Managers and Insurance Intermediaries
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FIRST PUBLISHED   LAST UPDATED 06/09/2010
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Requirements for Licensing

In accordance with section 3 of The Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002, as amended (”the Law”), a person wishing to be licensed as an insurance manager or insurance intermediary shall apply in that behalf to the Commission. The requirements for licensing are contained in The Insurance Managers and Insurance Intermediaries (Licensing) Regulations, 2002 and include the submission of: 
  • A completed application form in the standard format determined by the Commission

  • Details of the proposed ownership of the applicant

  • Details of the proposed business plan of the applicant

  • Details of the proposed personnel and third party service providers of the applicant, including authorised insurance representatives, where applicable

  • Details of the amount of, and limitations of, the proposed professional indemnity cover of the applicant

  • A copy of the proposed client monies handling procedures of the applicant

  • Details of the proposed bank mandate signing powers of the applicant

  • Confirmation as to the origin of sources of funds to support the operations of the applicant.

A copy of the applicant’s certificate of incorporation and memorandum and articles of association, and confirmation that share capital has been received, are also required before a licence can be granted.  Additional information may also be required where the applicant, potential clients, controller or ultimate holding company is resident in a sensitive jurisdiction, as published by the Commission on its website.
 

Considerations by the Commission

When assessing applications for an insurance manager or insurance intermediary licence, the Commission considers the application against the minimum criteria for licensing, which can be found in Schedule 4 of the Law, as well as the means by which the applicant will comply with all other requirements of the Law and its associated regulations, rules, codes and guidance issued by the Commission from time to time. Key considerations include:  
  • Whether the business of the applicant will be conducted with integrity and skill

  • Whether fit and proper persons will be involved in the ownership, management and control of the applicant

  • Whether the business of the applicant will be directed by at least two individuals of appropriate standing and experience

  • The composition of the Board of Directors in relation to the nature and scale of the business proposed

  • Whether the business of the applicant will be conducted in a prudent manner

  • Whether the business of the applicant will be carried out in, or from within, the Bailiwick of Guernsey

  • Whether the minimum levels of professional indemnity insurance will be met and maintained by the applicant

  • Whether the minimum capital requirement will be met and maintained by the applicant.

Where relevant, the Commission will make enquiries of foreign supervisors in order to assist its consideration of the applicant's suitability in accordance with the minimum criteria for licensing.

How to Apply 

It is essential that all prospective applicants familiarise themselves with the relevant local insurance laws, regulations, rules and codes, including the anti money laundering requirements, before applying for an insurance manager or insurance intermediary licence. It is also recommended that prospective applicants contact the Commission at the earliest possible opportunity to discuss their outline proposals.  However, it should be noted that whilst the Commission is happy to provide help and guidance to prospective applicants, it is unable to provide legal advice on the Law or its associated regulations, rules and codes.  Therefore, prospective applicants should also seek the guidance of a Bailiwick of Guernsey advocate to ensure that all local legal requirements will be satisfied should a licence be granted.
 
Should a prospective applicant wish to proceed with a formal application for licensing, a completed application form, together with the relevant fee, should be submitted to the Commission for processing.  The relevant application forms are as follows:   
 
Guernsey Financial Services Commission