The Cayman Islands Monetary Authority has imposed discretionary administrative fines totalling $95,409.11 on Artex Risk Solutions (Cayman) Limited.
The fines were imposed for “knowingly or wilfully supplying false or misleading information to the Authority” in relation to an application made on behalf of a managed insurance company.
The authority separately fined Kevin Poole $14,700 for the same conduct. Earlier this year, Poole left Artex Risk Solutions, where he was most recently director for business development.
At the same time, CIMA fined Global Core Insurance SPC, the insurance company managed by Artex, $78,150 for failing to comply with solvency requirements under the Insurance Act and regulations.
CIMA said Artex Risk Solutions had obtained information about a material change in the managed insurance company and failed to report it.
The regulator said Artex had also known that the managed insurance company “was carrying on or attempting to carry on business otherwise than in compliance with the Insurance Act, 2010 or the Regulations” and had, as the insurance manager, failed to report it.
The breaches related to conduct that occurred between 2020 and 2021.
The authority said Global Core Insurance SPC had failed to maintain the margin of solvency prescribed under the law and regulations, in respect of a segregated portfolio, and had not maintained solvency equal to, or in excess of, the total prescribed capital requirement.
In addition, Global Core Insurance SPC had failed to carry on insurance business only in accordance with the information provided in the company’s approved licence application and business plan.
The company had not sought CIMA’s approval for a change in the approved business plan or in the information supplied in its application, the authority said.
The breaches related to a period from 2019 to 2021.
In its enforcement notice, CIMA reminded licensed insurance managers of their ongoing legal obligation to report any unauthorised material change in the business plan of an insurance company under their management, and any other instances of non-compliance with legal and regulatory requirements to the authority.
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