• PINS Part 3.9 PINS Part 3.9 Failure to maintain appropriate financial resources or comply with capital requirements

    Editorial changes (as from 1 January 2015).

    • PINS Guidance for pt3.9

      In dealing with a breach, or possible breach, of this Chapter, the Regulatory Authority's primary concern will be the interests of policyholders, both existing and prospective. It recognises that there will be circumstances in which a problem may be resolved quickly, for example by support from a parent entity, without jeopardising the interests of policyholders. In such circumstances, it will be in the interests of all parties for there to be minimum disruption to the insurer's business. The authority's normal approach will be to seek to work cooperatively with insurers to deal with any problems. There will, however, be circumstances in which it is necessary to take firm action to avoid exposing further policyholders to the risk of the insurer's failure, and the authority will not hesitate to take disciplinary action if it considers this necessary.

      Amended by QFCRA RM/2015-1 (as from 1st July 2015).

    • PINS 3.9.1 Possible breach of r 1.2.2 or ch 3

      If an insurer becomes aware, or has reasonable grounds to believe, that it may be, or may be about to be, in breach of rule 1.2.1 or any provision of this Chapter, it must—

      (a) tell the Regulatory Authority orally about the matter immediately, but within 1 business day;
      (b) by notice given to the authority by no later than the next business day
      (i) confirm the oral notification;
      (ii) explain why the insurer considers it may be, or may be about to be, in breach of the provision; and
      (iii) set out the action that the insurer proposes to take to avoid the breach; and
      (c) not make any distribution to its shareholders or members, whether by way of dividends or otherwise, without the authority's written permission.
      Examples — meaning of 'within 1 business day'

      1 If, on a business day, the insurer becomes aware that it may be in breach of this Chapter or rule 1.2.2, the insurer must tell the authority immediately, but on that day
      2 If, on a day that is not a business day, the insurer becomes aware that it may be in breach of this Chapter or rule 1.2.2, the insurer must tell the authority immediately, but by no later than the next business day.
      Editorial changes (as from 1 January 2015).

    • PINS 3.9.2 PINS 3.9.2 Breach of r 1.2.2 or ch 3

      If an insurer becomes aware that it is in breach of rule 1.2.2 or any provision of this Chapter, it must—

      (a) tell the Regulatory Authority orally about the matter immediately, but within 1 business day;
      Examples

      See examples to rule 3.9.1 on the meaning of 'within 1 business day'.
      (b) by notice given to the authority by no later than the next business day
      (i) confirm the oral notification;
      (ii) explain the nature of the breach; and
      (iii) set out the action that the insurer proposes to take about the breach;
      (c) cease effecting contracts of insurance in or from the QFC until the authority gives it written permission to recommence; and
      (d) not make any distribution to its shareholders or members, whether by way of dividends or otherwise, without the authority's written permission.

      Note See also r 4.4.2(1) (b) (i) which prohibits the payment of interest or principal for subordinated debt included as part of the insurer's eligible capital if the insurer is in breach of its minimum capital requirement.

      Editorial changes (as from 1 January 2015).

      • PINS Guidance for pt3.9 [Deleted]

        Deleted by QFCRA RM/2015-1 (as from 1st July 2015).