The PDM released the following to RTC News on BAFSL.
“Late last year, these Islands learned of the possible liquidation of the British Atlantic Financial Services Ltd. In light of information that may have supported what may have been a strained relationship between the FSC and the Company, the Opposition responded by calling for a full investigation into the Financial Services Commission’s management and handling of BAFSL. With the potential catastrophic fallout for its policy holders and investors, we pledged our support for any Bail Out Proposal tendered by any entity including the TCI Government. We watched the matter closely, assisted where we could including attending one of the Court Hearings in order to better understand the issue. We are extremely disappointed that the Company has now been placed in full liquidation.
We are now hoping for a quick liquidation process and are calling on the Liquidators to not engage in a long drawn out, costly process that will only result in less monies being given to the policy holders and we encourage them further to expend all efforts to share information with the policy holders in a clear and forthcoming manner.
We believe that this is a great loss again in these Islands and we anticipate the effects of this will be wearying. It is another sad period where hardworking policy holders after long periods spanning some decades have lost significant investment in their life, health and pension coverage as well as further education planning. We are extremely concerned as we think of those who will have to seek new life insurance policies for mortgage coverage purposes and we call on the Banks to be as cooperative as it can in this regard. The loss to the Government will also be felt as persons who may have maintained their medical insurance may not be able to obtain further medical coverage due to the high costs or high risks. Therefore the Government will now through NHIP have to provide care for these persons. The fall out will be far reaching and great.
We are pleased that the investigation of the FSC is forthcoming having had two great losses to our citizens within recent years with this coming on the heels of the closure of TCI Bank. Our country suffers another reputational blow. We maintain that the regulator has a fiduciary responsibility to protect consumers of financial service Institutions and we must ensure that it is doing all it can. We welcome an independent review of the FSC and await the findings.
We maintain our position that this sector is more than capable of yielding more than it currently does and we are again calling for the introduction of new niche markets and supporting legislation, the updating of existing legislation, greater levels of productivity in growing the Industry from the FSC, a mechanism to ensure that we are not overregulating ourselves and consequently slimming our competitive edge, a greater partnership between TCIG and the sector and greater Governmental support.
We remain committed to work towards the attainment of all of these goals.”
