BERMUDA REGULATOR BREAKS INSURANCE LAW, MINISTRY OF FINANCE SUMMONED
The legal dispute between investment bond insurer Custodian Life Limited (“CL”), and the capricious regulator Bermuda Monetary Authority (“BMA”) and two of its officers, continues.
CL established a stakeholders’ committee, representing more than 50% of the 200+ policyholders holding their retirment and pension savings with CL. CL’s engagement ensures the end policyholders will be protected as much as possible from the unilateral actions of the BMA and the appointed provisional liquidators from Deloittes. Something clearly the BMA forgot about..
To the astonishment of stakeholders, at the most recent Committee meeting, a discussion took place about the BMA’s actions in the past against CL. All were astonished to learn about the Insurance Appeal Tribunal Regulations 2011, and how section 10 required the BMA to respond to CL’s request for an appeal and the grounds as described, after the unilateral action taken by the BMA in early 2022. The BMA didn’t respond for 11 months (not 28 days), and as a result the regular audit performed by KPMG was left unfinished, and BMA used this excuse in part to place CL into provisional liquidation.
11 months, not 28 days, as decreed by Bermuda law! Presumably when the regulator grossly flouts the law and commits wilful malfeasance, to the detriment of 2000+ policyholders and over US$ 200 million of assets, the Ministry of Finance will be forced to act.
IFA businesses, built up over decades, are suffering by this unlawful action of the BMA, violating section 10 of Insurance Appeal Tribunal Regulations 2011. IFA’s, distributors and ultimate policyholders have demanded a response and some corrective action by the Ministry of Finance, the supervisor of the BMA. This tortious interference in the business of CL and its client companies is beyond a disgrace, and the BMA should be held accountable for its illegal actions.
