Action Taken against BAICO
Published 17th September 2009, 2:40pm
In addition to the recent appointment of controllers to manage the affairs of British American Insurance Company (BAICO) by the Cayman Islands Monetary Authority (CIMA), the National Pensions Office has also taken action under the National Pensions Law (2000 Revision) to seek to protect pension assets administered by BAICO. This action requires BAICO to provide important information, which is necessary for the National Pensions Office to properly regulate the registered multi-employer pension plan operated by BAICO in the Cayman Islands, within 30 days. The action takes the form on an Order, as provided by section 70 of the National Pensions Law (2000 Revision), and has become necessary as a result of the repeated failures of BAICO to provide this information when previously requested. The Order requires BAICO to provide the National Pensions Office with their now overdue audited financial statements, their annual information return and a detailed report of all contributions received by the pension plan from inception to the end of September 2009. The Superintendent's Order, which was served on BAICO on the 15th September 2009, has also been filed in Grand Court. This means that it carries the weight of an order of the Court and is enforceable as such. The National Pensions Office is working closely with CIMA in an effort to best protect these pension assets and the Acting Superintendent of Pensions has already met with the BAICO Controller to emphasise the importance of the information requested. The National Pensions Board has been briefed by the Acting Superintendent and together the Acting Superintendent and the National Pensions Board are closely monitoring the situation in order to assess whether additional action is necessary under the National Pensions Law (2000 Revision) to protect pension assets. While BAICO is not presently allowed to engage new business, following the issuance of a cease and desist order by CIMA on the 29th June 2009, BAICO is permitted to continue to receive pension contributions from existing members of its registered pension plan. If employers or employees are considering alternative pension arrangements, there are options available to them. There are five other multi-employer pension plans operating in the Cayman Islands, all of which are registered with the National Pensions Office. Information on registered multi-employer pension plans in the Cayman Islands may be obtained from the National Pensions Office's web-site at www.npo.gov.ky, or by calling the Office on 945-8960.