Section 16: Power to suspend or revoke licence

16. Power to suspend or revoke licence (1) The Chief Executive may suspend, or the Enforcement Committee may revoke, a licence where a captive insurer— (a) is insolvent or has its capital impaired; (b) fails to meet capital and solvency margin requirements; (c) refuses or fails to submit an annual report required under this Act or any other report or statement required by law or by a direction of the Commission; (d) fails to comply with the provisions of its constitution, bylaws or other organisational document; (e) fails to submit to or pay the cost of an investigation or any legal obligation related thereto; (f) makes use of methods that, although not otherwise specifically prohibited by law, nevertheless render its operation detrimental or its condition unsound with respect to the public or its policyholders; or (g) otherwise does any unlawful act. C2 – 11 [Issue 10] Captive Insurance Act 2015 (2) Subject to subsection (3), where a licence is suspended, the licensee shall cease to carry out the activity authorised by the licence, but shall remain subject to the obligations of a licensee and to the directions of the Commission until the suspension of the licence is cancelled. (3) Notwithstanding subsection (2), a captive insurer whose licence is suspended may continue to carry out such activities as the Chief Executive may authorise and on such conditions as he may determine. (4) Notwithstanding the revocation of a licence, a captive insurer shall continue to be subject to the terms and conditions under which the licence was issued, and to the directions of the Commission for the orderly dissolution and discharge of its liabilities. (5) The powers of the Chief Executive or the Enforcement Committee under this section are without prejudice to the powers of the Commission, Chief Executive or Enforcement Committee under any other enactment. (6) In suspending a licence under subsection (1), the Chief Executive shall follow the procedure set out under section 27 of the Financial Services Act. (7) The Enforcement Committee shall, in revoking a licence under subsection (1), follow the procedure set out under section 53 of the Financial Services Act. PART VI – MISCELLANEOUS