8-1

Excluding the first year of licensing, the net equity of an Insurance Broker must not be less than hundred percent (100%) of the paid capital, at all times.

8-2

If the net equity falls below hundred percent (100%) of the paid capital, the Insurance Broker must notify the Central Bank immediately and submit a plan to the Central Bank to re-establish the required level of the net equity within fifteen (15) days from breaching the aforementioned threshold.

8-3

The Central Bank may take the measures it deems necessary towards the Insurance Broker in the event of net equity falls below hundred percent (100%). The Insurance Broker’s Representatives must inform the general assembly or its equivilant to either increase the capital to re-establish the required level of the net equity within the time specified by the Central Bank, or to liquidate the establishment.

8-4

An Insurance Broker must not undertake new Insurance Brokerage activities until it reestablished the required level of the net equity. The Insurance Broker must honor its existing commitments towards Clients and Companies at all times during the period of re-establishment of the required level of the net equity.

8-5

Dividends to the Insurance Broker’s Representatives or any form of profits repatriation to the head office of the Insurance Broker is subject to the Central Bank’s prior written approval, upon ensuring that the Insurance Broker has fulfilled the financial soundness requirements. the Insurance Brtoker’s Representatives may only receive dividends or withdraw any amounts of money or any of the corporation’s assets, surplus/profit, provided that the net equity amounts more than hundred percent (100%) of the paid capital.

8-6

Liquid assets must not be less than hundred percent (100%) of current liabilities.

8-7

Cash must not be less than twenty five percent (25%) of net liabilities.

8-8 

The bank guarantee stated in Article (2.10) and/or the amount of money reserved in return of granting the bank guarantee does not form part of the assets that can be used to satisfy the requirements of Artilces (8.6) and (8.7).

8-9

If the requirements provided for in Articles (8.6) and (8.7) are not met, the Insurance Broker must submit a plan to the Central Bank to rectify its position within fifteen (15) days of notifying it of such non-compliance. The plan must include the measures to be taken and the time required. The Central Bank may accept or reject the plan, or require additional measures to be taken.

8-10

If the Insurance Broker does not execute the plan referred to in Article (8.9) within the specified timeframe, the Central Bank shall take the necessary measures towards the Insurance Broker, as it may deem fit.

8-11

In case there is a surplus of the paid capital to the minimum capital requirement, the capital may not be reduced without the Central Bank’s approval, based on the level of financial soundness of the Insurance Broker.

8-12

Title/ownership of all assets of the Insurance Broker must be vested exclusively in the Insurance Broker.