• 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)