Powerhouse Insurance Limited
The Isle of Man Financial Services Authority (the ‘Authority’) today publishes its report to the Treasury Minister following the independent review by Mr Charles Flint QC on the role of the Insurance and Pensions Authority in relation to the failure of Powerhouse Insurance Limited.
This report, entitled the ‘Treasury Report’ a copy of which can be found here, sets out the key findings of Mr Flint QC along with the response of the Authority to the conclusions of Mr Flint QC including highlighting the regulatory and supervisory developments which address the matters observed.
The Treasury Report, which was delivered to the Treasury Minister on 30 June 2017, concludes the four year-long regulatory investigation into the affairs of Powerhouse Insurance Limited.
Mr Geoff Karran, Chairman of the Authority says:
“This is a complex case in which the material events occurred between 13 and 20 years ago. Following an internal investigation involving the review of up to 10,000 documents the Authority engaged experienced leading counsel to undertake an additional impartial review of the case.
We are pleased to be able to publish today our report to the Minister for the Treasury which includes the unabridged ‘Summary of Findings’ of Mr Flint QC.
As is often the case in these matters there is always more that could have been done by all parties involved but as confirmed by Mr Flint QC, certainly from a regulatory point of view, it was unlikely to have made any difference in the end to the demise of Powerhouse Insurance Limited. The Authority and its predecessor, the IPA, have already made significant strides in ensuring regulatory standards meet the needs of the Island's financial sector and those expected by International Standards.
There has been much public scrutiny and debate surrounding the issues that led to the failure of Powerhouse Insurance Limited. Mr Flint QC, a highly respected barrister and an expert in his field who is independent of the Authority has confirmed in his report ‘that the very serious allegations of impropriety made against the directors of Powerhouse Insurance Limited are baseless’. Through our report to the Minister, the Authority now concludes upon the matters falling within the remit of the Authority.”
In considering the scope of the independent review, Ms Karen Badgerow, the Chief Executive of the Authority stated:
“The primary focus of the work of the Authority and that of Mr Flint QC was Powerhouse Insurance Limited and as such appropriately concentrated on matters within the statutory remit of the Authority.
Going forward, the Authority remains committed to maintaining and improving appropriate standards of regulation for the general insurance sector of the Isle of Man and the Authority considers developments to the insurance framework currently underway to be consistent with its aims of ensuring that the Island has a proportionate regime for the regulation and supervision of general insurance business which is robust and which maintains the Island’s reputation as a responsible international jurisdiction.”