About Registration Validity and Authority’s Discretion for IIIO in IFSC
Understanding the nuances of the International Insurance Intermediaries Offices (IIIO) Regulations is integral for businesses operating in the International Financial Services Centre (IFSC). This guide, therefore, focuses on two critical topics – the validity of the certificate of IIIO registration, and the Authority’s right to refuse registration.
Is the Certificate of Registration Granted to IIIO Perpetual?
Contrary to what some might believe, the certificate of registration granted to an IIIO is not of perpetual validity. According to sub-regulation (3) of Regulation 7 of IIIO Regulations, the lifespan of a registration certificate for an IIIO is limited.
Specifically, a certificate of registration remains valid for three years from the issuance date. Upon reaching the three-year mark, the certificate is no longer valid unless renewed. However, it’s essential to note that the Authority holds the power to revoke or cancel the certificate at any time within its valid period under specified circumstances.
Can the Authority Refuse the Granting of Registration?
Yes, the Authority does possess the right to refuse the granting of registration based on sub-regulation (5) of Regulation 7 of the IIIO Regulations. The Authority follows a distinct process in making such a decision:
Communicating Identified Deficiencies
Upon reviewing an application, should the Authority find it incapable of being granted registration, it communicates the identified shortcomings to the applicant. The applicant then has a 30-day window to rectify these defects.
Justified Refusal Upon Failure to Rectify Deficiencies
If the applicant is unable to satisfactorily rectify the identified deficiencies within the specified timeframe, the Authority is within its rights to refuse registration. Importantly, the Authority communicates the reasons for such a decision to the applicant, adding clarity and transparency to the process.
Opportunity to Challenge the Proposed Refusal
However, the Authority doesn’t finalize such a refusal without lending the applicant an opportunity to raise objections. Applicants are given a chance to make written submissions on the grounds which the Authority proposes for refusing the registration. These objections are then taken into consideration before the Authority reaches the final decision.
To sum up, while the Authority retains the discretion to restrict registration to comply with the norms and maintain the authenticity of entities within IFSC, it also ensures a fair and communicative procedure. Applicants, therefore, must be familiar with these critical aspects of the IIIO Regulations to align their practices accordingly and ensure successful registration within the IFSC.
