The Government, through the local media, recently learned that the Managing Director of the Financial Services Commission (FSC), Mr. Kevin Higgins has filed a petition with the courts to liquidate the insurance company, British Atlantic Financial Services Ltd (BAFSL), formerly known as British American Insurance. The Government regrets this course of action taken by the FSC, an action that, if effected, can have a devastating impact on the investments and life savings of the 2600 BAFSL policy holders.
The Premier, upon receiving details of the actions of the FSC, met with the Management of BAFSL to ascertain the circumstances which led to and surrounding the FSC’s actions. The Premier also wrote to the Governor who, under section 37 (1) c of the TCI constitution, has responsibility for the regulation of the financial services, to seek clarity and his intervention in the matter that is before the courts, in order to prevent liquidation of the company and to explore other positive avenues that will minimize financial loss to the many policy holders.
“It is indeed unfortunate that Mr. Higgins stated in his interview with the TC weekly News that this failure of BAFSL or his actions could have been avoided if the necessary regulations were in place and if the Insurance Legislation was passed. It must be clearly stated, that since the start of this administration the Government, in the House of Assembly, has supported the presentation of all proposals recommended by the FSC to strengthen the regulatory framework within the financial services industry.
These efforts have been recognized locally and internationally. Furthermore, in this regard, the Government presented to the House of Assembly a Domestic Insurance Bill drafted by external drafters who were instructed by the FSC, but later withdrew it in order to address several substantive issues. That Bill is currently in the late stage of extensive but necessary redrafting by the Attorney General’s Chambers on instructions from the FSC, and will be reintroduced to the House of Assembly as soon as completed.
“The Government will continue do all in its powers to ensure proper management of this situation by the FSC, to avoid the liquidation of BAFSL and to minimize loss to its many policy holders,” Premier Ewing commented.
