Cayman Islands Monetary Authority fines Artex

The Cayman Islands Monetary Authority (CIMA) has imposed discretionary administrative fines totalling  CI$95,409 ($114,574) on Artex Risk Solutions (Cayman).

The fines were imposed for:

• knowingly or wilfully supplying false or misleading information to the Authority in relation to an application submitted to the Authority on behalf of a managed insurance company at the relevant time;
• obtaining information about a material change in a managed insurance company’s business that had not been reported to the Authority and failing, as insurance manager of the company at the relevant time, to report this material change to the Authority; and,
• obtaining information or suspecting that a managed insurance company was carrying on or attempting to carry on business otherwise than in compliance with the Insurance Act, 2010 or the Regulations and failing, as insurance manager of the company at the relevant time, to report this to the Authority.

CIMA has also imposed a discretionary administrative fine of CI$14,700 ($17,653) on Kevin David Poole, director of business development at Artex Risk Solutions (Cayman), for “knowingly or wilfully supplying false or misleading information to the Authority”.

The above breaches relate to conduct that occurred between 2020 and 2021.

CIMA said: “The Authority reminds licensed Insurance Managers of their ongoing legal obligation to report any unauthorised material change in the business plan of an insurance company under their management and any other instances of non-compliance with legal and regulatory requirements to the Authority.”

A spokesperson for Artex said: “As part of our established checks and balance process, we conducted a review in early 2021 and discovered an operational anomaly that did not meet our governance standards. Artex took immediate action to remediate the issue and proactively reported the findings to CIMA, who then conducted its own review. We continue to work closely and cooperate fully with CIMA.

“Artex is committed to transparency and partnership with local regulatory bodies. Our Cayman operation is now under new leadership that will continue our commitment to these important objectives.”