• IMEB Part 2.1 IMEB Part 2.1 Prudential requirements — general

    • IMEB 2.1.1 Application — ch 2

      (1) This chapter applies to a firm that is an insurance intermediary with—
      (a) an authorisation that permits it to conduct only insurance mediation; or
      (b) authorisations that permit it to conduct only insurance mediation and captive insurance management.
      (2) This chapter also applies to a firm that is a captive insurance manager with—
      (a) an authorisation that permits it to conduct only captive insurance management; or
      (b) authorisations that permit it to conduct only captive insurance management and insurance mediation.
      Amended by QFCRA RM/2014-3 (as from 1st January 2015)

    • IMEB 2.1.2 IMEB 2.1.2 Financial resources — general requirement

      (1) A firm must have at all times financial resources of the kinds and amounts required by, and calculated in accordance with, this chapter.
      (2) A firm must also have at all times additional financial resources that are adequate for the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

      • IMEB 2.1.2 Guidance

        For rule 2.1.2 (2), the firm's governing body should assess whether the minimum financial resources required by these rules are adequate for the firm's business. Additional financial resources should be maintained by the firm if its governing body considers that the required minimum financial resources do not adequately reflect the risks of the firm's business.

        Note Governing body is defined in the glossary.

        Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 2.1.3 Firms must have systems and controls for capital and asset requirements

      (1) A firm must have systems and controls to enable it to monitor—
      (a) the amount of its paid-up share capital; and
      (b) its net asset value.
      (2) The systems and controls must enable the firm to show at all times whether it complies with this part.

      Note Paid-up share capital is defined in the glossary for firms that are not companies. Net asset value is defined in rule 2.2.3.
      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 2.1.4 IMEB 2.1.4 Obligation to tell Regulatory Authority about breach of part 2.1

      If a firm becomes aware, or has reasonable grounds to believe, that it is or may be (or may be about to be) in breach of any provision of this part, it must—

      (a) tell the Regulatory Authority orally about the matter immediately, but within 1 business day; and
      (b) by notice given to the authority by no later than the next business day, confirm the oral notification; and
      (c) not make any distribution to its shareholders or members, whether by way of dividends or otherwise, without the authority's written permission.

      Note Business day and written are defined in the glossary.

      Derived from QFCRA RM/2011-3 (as from 1st July 2011)

      • IMEB 2.1.4 Guidance

        In dealing with a breach, or possible breach, of this part, the Regulatory Authority's primary concern will be the interests of existing and prospective policyholders and clients. The authority 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 and clients. In such circumstances, it will be in the interests of all parties for there to be minimum disruption to the firm's business. The authority's normal approach will be to seek to work cooperatively with firms to deal with any problems. There will, however, be circumstances in which it is necessary to take regulatory action to avoid exposing further policyholders and clients to the risk of the firm's failure, and the authority will not hesitate to take appropriate action if it considers this necessary.

        Derived from QFCRA RM/2011-3 (as from 1st July 2011)

    • IMEB 2.1.5 References to particular currencies

      In these rules, the specification of an amount of money in a particular currency is also taken to specify the equivalent sum in any other currency at the relevant time.

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