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;

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).