Regulatory Alerts2018-08-03
Guidance Note for Licensed Insurers on Change of Majority Shareholder Controller
The Guernsey Financial Services Commission requires licensed insurers to notify it in writing immediately upon becoming aware of any proposal for an existing shareholder controller to become a majority shareholder controller. A majority shareholder controller is defined as a person entitled to exercise or control 50% or more of the voting power in the company's general meetings. This guidance does not apply to cells of a Protected Cell Company and does not replace statutory controller notification requirements under the Insurance Business Law.
THE INSURANCE BUSINESS (BAILIWICK OF GUERNSEY) LAW, 2002 (“the Insurance Business Law”) GUIDANCE NOTE FOR LICENSED INSURERS ON CHANGE OF MAJORITY SHAREHOLDER CONTROLLER This guidance note sets out the Commission’s expectation that a licensed insurer will notify the Commission in writing, as soon as it becomes aware of any proposal for an existing shareholder controller to become a majority shareholder controller of the insurer. For the purposes of this guidance a majority shareholder controller means a person who, alone or with associates, is entitled to exercise, or control the exercise of, 50% or more of the voting power in general meeting of that company or of any other company of which that company is a subsidiary. This guidance does not apply to the cells of a Protected Cell Company. This guidance does not replace or modify any statutory controller notification requirements under the Insurance Business Law.