Cap. 403 Art. 8Authorisation requirements.

(1) The competent authority shall not issue an authorisation under article 7 unless it is satisfied that -

(a) an application for authorisation is made in writing by an undertaking in such form and manner as the competent authority may from time to time determine;

(b) (i) in the case of an undertaking which intends to carry on business not restricted to reinsurance, the undertaking’s objects are limited to business of insurance and operations arising directly therefrom, to the exclusion of all other commercial business;

(ii) in the case of an undertaking which intends to carry on business restricted to reinsurance, the undertaking’s objects are limited to the business of reinsurance and related operations; this may include a holding company function and activities with respect to financial sector activities within the meaning of Article 2(8) of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate and amending Council Directives 73/239/EEC, 79/ 267/EEC, 92/49/EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/EC and 2000/ 12/EC of the European Parliament and of the Council, as amended from time to time;

(c) the undertaking has disclosed to the satisfaction of the competent authority such information as the competent authority has requested of it in relation to persons who will, upon the authorisation of the undertaking, have any proprietary, financial or other interest in, or in connection with, that undertaking;

(d) the undertaking has disclosed the identities of the shareholders, direct or indirect, whether natural or legal persons who will have qualifying holdings in that undertaking and the amounts of those holdings;

(e) all qualifying shareholders, directors, controllers and all persons who will effectively direct or manage the business of insurance are fit and proper persons to ensure the sound and prudent management of the undertaking;

(f) the undertaking has submitted to the satisfaction of the competent authority a scheme of operations which shall include the particulars or proof as may be determined by Insurance Rules made for the purpose of this article;

(g) the undertaking holds eligible basic own funds to cover the absolute floor of the Minimum Capital Requirement in accordance with article 17;

(h) the undertaking shows evidence that it will be in a position to hold eligible own funds to cover the Solvency Capital Requirement, in accordance with article 15, going forward;

(i) the undertaking shows evidence that it will be in a position to hold eligible basic own funds to cover the Minimum Capital Requirement, in accordance with article 17, going forward;

(j) the undertaking shows evidence that it will be in a position to comply with the system of governance provided for in article 18I.

(2) Without prejudice to article 5, an undertaking seeking authorisation to extend its business of insurance to other classes or to extend an authorisation covering only some of the risks pertaining to one class shall be required to:

(a) submit a scheme of operations referred to in sub-article (1)(f);

(b) submit proof that it possesses eligible own funds to cover the Solvency Capital Requirement and Minimum Capital Requirement in accordance with articles 15 and 17 respectively.

(3) The competent authority shall not issue an authorisation under article 7, where close links exist between an undertaking applying for authorisation and any other natural or legal persons:

(a) if it considers that such close links prevent it from effectively exercising its supervisory functions; and

(b) if it considers that the laws, regulations or administrative provisions of a third country governing any one or more natural or legal persons with whom the undertaking has close links or difficulties involved in the enforcement of those measures, prevent it from effectively exercising its supervisory functions.

(4) For the purpose of ensuring compliance with the provisions of sub-article (3)(a), the competent authority shall require authorised insurance and reinsurance undertakings to provide it with the information necessary for it to monitor compliance with the conditions referred to in sub-article (3)(a) on a continuous basis.