Skip to content
bruneilawsby aturio
In forceAs enacted
Contents

47. Regulatory powers of Authority

(1)

If the Authority is satisfied that a licensee -

(a)

has ceased to carry on international insurance business;

(b)

has gone into liquidation, is wound up or in the process of being wound up or is otherwise dissolved;

(c)

has made an arrangement or composition with its creditors;

(d)

is unable or appears likely to become unable to meet its obligations as they fall due;

(e)

is carrying on business in a manner detrimental to the public interest, the interests of its policy holders, other creditors or persons conducting transactions with it;

(f)

has failed to comply with any condition of its licence;

(g)

has failed to pay any fee due under this Order or has otherwise contravened any provision of this Order;

(h)

has surrendered, had revoked or had suspended an insurance licence of any description in any other jurisdiction in circumstances which affect, or are likely to affect, the licensee's compliance with this Order;

814

Ii}

has been convicted of a criminal offence which in the opinion of the Authority warrants action under this section;

UJ has acted in any other way in a manner which might adversely affect the interests of Brunei Darussalam or the insurance industry, the Authority may take any of the courses of action specified in subsection

(2)

.

(2)

The courses of action referred to in subsection

(1)

are -

fa}

the revocation or suspension of the licence;

fb}

the imposition of varied or additional conditions on the licence;

fe}

the substitution of any director or officer of the licensee;

fd}

the appointment, at the expense of the licensee, of a person to advise the licensee on the proper conduct of its affairs and to report to the

Authority thereon within 3 months of his appointment;

Ie}

the appointment, at the expense of the licensee, of a person to assume control of the licensee's affairs, being a person who shall have mutatis mutandis all the powers of a person appointed as a receiver or manager of a company under the

International

Business

Companies

Order, 2000 (S 56/2000) and the Companies Act (Chapter 39);

ff}

where the licensee is incorporated under the laws of a jurisdiction other than Brunei Darussalam, at the expense of the licensee to take such advice and steps in such other jurisdiction as may be appropriate, having regard to the provisions of this Order including the investigation of winding-up, liquidation or analogous procedures or proceedings;

fg}

to require the licensee to take such other action as the Authority considers necessary.

(3)

Before taking any of the courses of action specified in subsection

(2)

, the

Authority shall give the licensee an opportunity to make representations why the course of action in question should not be taken;

and, whether or not such representations are made, if the Authority does take a course of action under subsection

(2)

, the licensee may appeal to the Court against the taking of the action.

(4)

A person appointed under paragraph fd} or Ie} of subsection

(2)

(in the following provisions of this section referred to an appointee)

shall from time to time and in any case within 3 months of his appointment or, as the case may be, the extension of his appointment under paragraph fb} of subsection

(5)

, prepare 815

BRUNEI DARUSSALAM GOVERNMENT GAZETTE and furnish a report to the Authority on the affairs of the licensee and may make recommendations therein.

(5)

On receipt of a report under subsection

(4)

, the Authority may -

fa}

revoke the appointment of the appointee;

fb}

extend the period of the appointment of the appointee;

fe}

subject to any conditions that the Authority may impose, allow the licensee to reorganise its affairs in a manner approved by the Authority;

fd}

revoke the licence and request the Attorney General to apply to the

Court for an order that the licensee be wound up in accordance with Part V of the Companies

Act (Chapter 39), either by the Court or subject to the supervision of the

Court

(and in this subsection

"Court"

has the same meaning as in that Act).

(6)

In the case of a licensee which is an international business company, the reference in paragraph fd} of subsection

(5)

to Part V of the Companies

Act

(Chapter 39) is a reference to that Part as it applies to such a company by virtue of the

First

Schedule to the

International

Business

Companies

Order,

2000

(S 56/2000).

(7)

Whenever the Authority revokes or suspends a licence under paragraph fa} of subsection

(2)

or paragraph fd} of subsection

(5)

, it shall cause notice of that revocation or suspension to be published in the Gazette and may also cause notice to be published, whether within

Brunei

Darussalam or elsewhere, in such newspaper or other publication as it may think fit.

PARTVII

PROTECTION

OF LONG-TERM

Interpretation of this Part.

Report

Read on from s 48

Schedules