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  • AU-2.3 AU-2.3 Condition 3: Controllers and Close Links

    • AU-2.3.1

      Insurance licensees must satisfy the CBB that their controllers are suitable and pose no undue risks to the licensee. Insurance licensees must also satisfy the CBB that their close links do not prevent the effective supervision of the insurance licensee by the CBB and otherwise pose no undue risks to the licensee.

      Amended: July 2007

    • AU-2.3.2

      Chapters GR-5 and GR-6 contains the CBB's requirements and definitions regarding controllers and close links.

      Amended: July 2007

    • AU-2.3.3

      In summary, controllers are persons who directly or indirectly are significant shareholders in an insurance licensee, or who are otherwise able to exert significant influence on the insurance licensee. The CBB seeks to ensure that controllers pose no significant risks to the licensee. In general terms, controllers are assessed in terms of their financial standing, their judicial and regulatory record, and standards of business and (where relevant) personal probity.

      Amended: July 2007
      Amended: October 2007

    • AU-2.3.4

      In summary, an insurance licensee has close links with its subsidiaries, with its parent undertakings, and with subsidiaries of its parent undertakings. It also has close links with any entity in which the licensee, its subsidiaries, its parent undertakings, and the subsidiaries of its parent undertakings has an equity interest of more than 20% (either in terms of capital or voting rights). The CBB seeks to ensure that these closely linked entities do not pose any material financial, reputational or other risks to the licensee. The CBB also seeks to ensure that the structure and geographical spread of the group is such that it is subject to adequate scrutiny at group level.

      Amended: July 2007
      Amended: October 2007

    • AU-2.3.5

      In all cases, when judging applications from existing groups, the CBB will have regard to the reputation and financial standing of the group as a whole. Where relevant, the CBB will also take into account the extent and quality of supervision applied to overseas members of the group and take into account any information provided by other supervisors in relation to any member of the group.

      Amended: July 2007
      Amended: October 2007