Cap. 487 Art. 43EAppointment, registration and enrolment of ancillary insurance intermediaries. Cap.403.

(1) Subject to the provisions of this Act, every authorised undertaking and enrolled insurance broker desirous of appointing a person to act on its behalf as an ancillary insurance intermediary shall, under this article, appoint and register in the Ancillary Insurance Intermediaries Company Register of the authorised undertaking or the insurance broker, as the case may be, and enrol with the competent authority in the Ancillary Insurance Intermediaries List, a person to act on its behalf as an ancillary insurance intermediary and to carry out ancillary insurance intermediaries activities, as shall be determined by means of Insurance Distribution Rules made for the purposes of this article, and, where a person is not an individual, such person must itself have an individual who satisfies the requirements of article 43C(1):

Provided that, an undertaking and an enrolled insurance

(a) a person registered in the Agents Register, Managers Register or Brokers Register under article 13;

(b) a person enrolled in the Agents List, Managers List or Brokers List under that article;

(c) a person enrolled in the Tied Insurance Intermediaries List under article 37;

(d) an undertaking authorised under the Insurance

Business Act to carry on business of insurance.

(2) Every authorised undertaking or enrolled insurance broker, as the case may be, desirous of appointing, registering and enrolling a person to act on his or its behalf as an ancillary insurance intermediary shall disclose the following information to the competent authority:

(a) where the ancillary insurance intermediary is a person which is not an individual:

(i) the identity of the shareholders, direct or indirect, whether natural or legal persons, who will have qualifying holdings in that ancillary insurance intermediary and the amounts of those holdings; and links with the ancillary insurance intermediary; and

(b) where the ancillary insurance intermediary is a person who is an individual, the identity of persons who have close links with the ancillary insurance intermediary.

(3) Where the holdings or close links referred to in sub-article

(2) exist between the ancillary insurance intermediary and any other person, the competent authority shall only grant enrolment if it considers that such holdings or close links do not prevent it from effectively exercising its supervisory functions.

(4) Where an authorised undertaking or an enrolled insurance broker, as the case may be, appoints and registers in its Ancillary Insurance Intermediaries Company Register a person which is not an individual, and that person carries out ancillary insurance intermediaries activities from any one or more places of business, that person shall ascertain that ancillary insurance intermediaries activities so carried out by it from each such place of business are carried out only by an individual who satisfies the requirements of article 43C(1).

(5) Any person, other than a person mentioned in the proviso to by means of Insurance Distribution Rules on behalf of such undertaking or insurance broker.

(6) No person who is an employee of an authorised undertaking or an enrolled insurance broker shall, solely by virtue of his employment by the undertaking or insurance broker, require registration in the Ancillary Insurance Intermediaries Company Register of the undertaking or insurance broker under this article.

(7) The competent authority shall determine an application for enrolment under this article within three months of the submission of a properly completed application form together with the requisite documentation required to be submitted under this Act and any regulations or Insurance Distribution Rules made thereunder. The competent authority shall notify the applicant of its decision, without undue delay; and if it refuses to grant the enrolment it shall inform the applicant in writing of the reasons for the refusal:

Provided that, the competent authority may take such measures as it may deem necessary for the protection of the interest of the public.

(8) On granting an application for enrolment under this Act, the competent authority shall issue to the applicant concerned a certificate of enrolment evidencing enrolment of the person registered in the Ancillary Insurance Intermediaries Company Register of the applicant in the Ancillary Insurance Intermediaries List.

(9) Subject to the provisions of this Act, the competent authority may subject enrolment made under this article to such conditions as it may from time to time deem fit to impose.

(10) The validity of the enrolment under this article shall be subject to a regular review by the competent authority.

(11) An authorised undertaking and an enrolled insurance broker shall at all times be responsible for any act or omission of its registered ancillary insurance intermediaries provided that such act or omission is an act or omission pertaining to a contract of insurance issued by the undertaking or insurance broker, or offered on its behalf through the services of such ancillary insurance intermediaries. For the purposes of this sub-article any reference to registered ancillary insurance intermediaries shall include a reference to past as well as present registered ancillary insurance intermediaries.