Licenses
AU-5.4.1
Insurance licensees wishing to vary the scope of their license must obtain the CBB’s written approval, before effecting any such change.Insurance licensees must seek prior CBB approval before undertaking new activities (such as carrying out or broking new classes of business). Approval must be sought whenever a licensee wishes to add or cease undertaking aregulated insurance service , or to vary a condition imposed on their license.Amended: July 2007AU-5.4.2
Failure to secure the CBB approval prior to effecting such changes is likely to be viewed as a serious breach of a licensee's regulatory obligations and may constitute a breach of Article 40(a) of the CBB Law.
Amended: July 2007AU-5.4.3
In addition to any other information requested by the CBB, and unless otherwise directed by the CBB, an
insurance licensee requesting CBB approval to undertake newregulated insurance services must provide the following documentation:(a) A summary of the rationale for undertaking the proposed new service;(b) A description of how the new service will be managed and controlled;(c) An analysis of the financial impact of the new service; and(d) A summary of the due diligence undertaken by the Board and management of theinsurance licensee on the proposed new service.Amended: July 2007AU-5.4.4
The CBB will only agree to amend a license if doing so poses, in its judgement, no unacceptable risks to
customers . As provided for under Article 48 of the CBB Law, the CBB may itself move to amend a license, for instance if a licensee fails to satisfy any of its existing license conditions or protecting the legitimate interests of customers or creditors of the licensee requires such a change. See also Chapter EN-7, regarding the cancellation or amendment of licenses, including the procedures used in such instances.Amended: July 2007
Amended: October 2007
