S.L. 386.10 Art. 5Approval of the competent authority required for cell company.

(1) A company may not be formed or constituted as a cell company, and an existing company may not be converted into a cell company, except in accordance with the terms and conditions of the written approval of the competent authority which shall only be granted in the case of a company which will, when formed or constituted, be authorised or, when converted, is an undertaking authorised in terms of article 7 of the Insurance Business Act to carry on business of insurance or a company enrolled in the Managers’ List or Brokers’ List in terms of the Insurance

Distribution Act.

(2) An authorised reinsurance undertaking, or a captive insurance undertaking or a captive reinsurance undertaking may be formed or constituted as a cell company or may be converted into a cell company in terms of these regulations.

(3) For the purposes of these regulations, the competent authority may, by Insurance Rules, from time to time, specify or restrict the classes of insurance a cell company may carry on, and the class or classes of persons, for, or in relation to whom, a cell may be created by a cell company.

(4) The competent authority may, from time to time, in such a manner as it deems appropriate:

(a) vary or revoke any term or condition subject to which an approval under sub-regulation (1) was granted; and

(b) impose any new term or condition in relation to any such approval.