The purpose of this page is to make sure that the application process is fully understood.
This section sets out:
- What is an Insurance Manager?
- What would this Licence allow you to do?
- Capital Requirements
- What do you need to submit?
An Insurance Manager exercises managerial functions and/or;
- Gives advice;
- Offers to give advice; or
- Agrees to give advice in relation to an Insurance Company.
What would this Licence allow you to do?
An Insurance Manager is authorised to exercise managerial functions in relation to the business of one or more Gibraltar licensed Insurance or Reinsurance Companies under the Financial Services (Insurance Companies) Act.
The licensing of an Insurance Manager falls within the scope of the Financial Services (Investment and Fiduciary Services) Act 1989 (the Act) and the Financial Services (Licensing) Regulations 1991. Insurance Managers should ensure that they comply with all subsidiary legislation under the Act.
Under the Act, Insurance Managers are required to hold on a permanent basis:
- Professional Indemnity Insurance which guarantees against liability arising from professional negligence, for at least €1,000,000 (or sterling equivalent) applying to each claim and in aggregate €1,500,000 (or sterling equivalent) per year for all claims; and
- At least two individuals as Directors of the Company to have the same skills, knowledge, experience, integrity and track record as if they were Executive Officers of the Insurance or Reinsurance Companies under management.
The functions of an Insurance Manager are similar to the functions of the staff and executive team of an Insurance Company. Accordingly, applications for this type of licence will be considered in that light.
The Insurance Manager should advise how it intends to record all the information necessary to be able to prepare returns for its companies under management, such as management accounts and statutory accounts.
An Insurance Manager must enter into a formal agreement with the Insurance Company it proposes to manage. The Agreement should describe and direct the relationship between the parties and clearly set out their respective functions, duties and responsibilities.
An Insurance manger is required to hold an initial and ongoing capital of:
- £10,000; or
- The equivalent to one-third of the firm’s annual expenses (or as projected at application), whichever is the greater.
Firms holding multiple licences may be required to hold the aggregate of the capital required for each licence prior to being permitted to conduct the proposed activity, and on an ongoing basis. The level of capital in these cases will be considered by the GFSC. It is advised that you discuss this with the GFSC ahead of your application.
What do you need to submit?
An application pack is required to be submitted with all the relevant documents.
An application will not be considered complete if there are any outstanding documents.
The application pack must consist of:
- Application Fee
- Application Form
- Business Plan
- Financial projections for the next 3 years;
- Profit and loss account
- Balance sheet
- Returns (these need to be on a quarterly basis for the first year and then annually for the following 2 years)
- Individual Questionnaires (for each individual holding a notifiable position)
- Body Corporate Questionnaires (for each entity holding a notifiable position)
- Trust Questionnaire (if applicable)
- Mapping assessment of how the application meets the relevant legislative threshold requirements (i.e. statutory/regulatory criteria for licensing under relevant Act/s)
Any other document the applicant considers the GFSC should take into consideration as part of the application.
The business plan should clearly and comprehensively set out:
- What services the firm intends to conduct and how it proposes to conduct the activity
- An assessment of the firm’s main risks and how these are to be mitigated
- The resources that are to be made available and the systems that the applicant intends to employ
- How clients will be sourced
- How records will be maintained
- How, and by whom, any significant decisions will be made
- The level and nature of fees to be charged to the firm’s clients and
- If the applicant forms part of a larger group, details should also be provided of the activities of the group and a description of its structure.
The GFSC will be seeking evidence that the firm has considered the risk, compliance and operational issues associated with the proposed activities, as well as evidence that these have been documented and implemented.
Applicants should ensure that the business plan is coherent with the firm’s risk appetite and capacity.
Should you get an error when opening any of the forms, please check the FAQ tab for guidance on how to override this.
Documents referred to in the application form must be clearly referenced to help us process the application swiftly.
RGP Vetting Form
Please note that an 'Individual Questionnaire' or a 'Notifiable Document' MUST be accompanied by a Royal Gibraltar Police vetting application form. Please note this will incur a cost of £10.
||Body Corporate Questionnaire
Where a trust is proposed as part of the shareholding structure of an applicant, the FSC will need sight of a comprehensive explanation setting out the rationale for the use of such a vehicle within the structure.
Furthermore, the following is required to be submitted together with the Questionnaire
- Copy of the trust deed
- A written undertaking from the respective trustees to the effect that:
- the provisions of the trust(s) in respect of beneficiaries, trustee(s) and terms of settlement are as contained in the relevant deed(s) dated [xxx],
- the resignation of any trustee and, where appropriate, protector will be notified to the Commission forthwith,
- no other trustee(s) or any additional or different protector(s) will be appointed, without the prior approval in writing of the Commission,
- any proposed changes to the beneficiaries must be notified in writing to the Commission,
- any proposed distribution or transfer for value or otherwise of any of the trust assets related to the applicant firm must receive the prior approval in writing of the Commission.
- Confirmation from the trustee(s) that they understand that failure to adhere to their undertaking may result in regulatory action against the applicant/regulated firm.
In addition to the Trust Questionnaire and the above listed information, the Applicant is also required to submit Individual Questionnaires for the settlor(s) and any named beneficiaries. This will not apply in cases where the beneficiary is a minor. In these cases, details of the individual will suffice i.e. name, DOB, address, nationality & passport number. When the trust is for example a discretionary family trust where not all beneficiaries are named (i.e. refers to spouse and children/issue of Mr X but does not actually name these individuals) a copy of the ‘letter of wishes’ of the Settlor, if any, will also be required.
In principle, the FSC does not favour the use of nominee shareholdings for the purposes of holding shares, directly or indirectly, in a regulated firm. The Commission will therefore require that the applicant submit a paper setting out the rationale for the use of these structures in each instance where this is being proposed. This should include comprehensive details as to why it is necessary to hold the shares in this way.
The application fee must accompany your application. Please note, if you are applying for more than one licence, aggregate fees will apply.
The annual fee is not payable until your application is approved. For details of these please refer to the current Fee Regulations.
Under the GFSC’s annual fee methodology you pay a minimum base fee which is dependent on the set fee block assigned to your regulated sector. In addition to the base fee, you are also required to pay an additional amount that will be calculated based upon a range of factors including activity and income. To calculate the additional part of your annual fee the GFSC will need to review audited financial data and/or supervisory returns. At licensing stage, you will not yet have the requisite audited financial data or supervisory returns available for the GFSC to calculate the additional part of your annual fee. On this basis, the GFSC will only require you to pay the base fee at this stage and, towards the end of the GFSC’s financial year end (31 March), you will then be invoiced for the remainder of the annual fee which will be calculated based upon the financial data and/or supervisory returns provided by you up until that date.
Details on the payment methods can be requested from the Accounts team.
Service Level Standards
The current service level standards are:
- To provide initial feedback to an application within 5 weeks of a complete application being received.
- Once all of the information has been received from an applicant and the application is therefore considered to be complete, we aim to provide an in principle decision within 4 weeks.
Please be advised that the above service level standards refer to the period of time in which the GFSC holds applications for consideration. Where we require further information or documents from an applicant the service level standards will be suspended until we receive the requested information. The period of time an application is pending because of factors outside the control of the GFSC will not be accounted for under the service level standards.
Please note that should we be unlikely to meet our SLS’s, we will advise you as soon as possible.