Tuesday, July 24, 2007

Public Statement issued by the BVI FSC

On July 13, the British Virgin Islands Financial Services Commission issued Public Statement signed by managing director/CEO Robert Mathavious. This Public Statement concerns Boston Life and Annuity Company Limited and has been issued in order to protect the public interest and the interests of those who are somehow related to Boston Life and Annuity Company Limited.

The BVI FSC informs the public that in April 2006 it received complaints from policyholders of the above-mentioned company. According to the complaints, the company had improperly terminated insurance policies under one of its programs to deprive policyholders of a refund. The Financial Services Commission started its investigations at once, and on June 2, 2006 it issued the Notices requiring documents and information from Boston Life and Annuity Company Limited and related parties.

According to the public statement, “in July 2006, the Commission retained the services of Krill Inc./ Kroll Associates Inc. to provide investigative assistance in the first instance providing an expert Forensic Accountant to review substantial records that the Commission had obtained in the course of investigations”.

In January 2007, Kroll was appointed by the Commission as an examiner to conduct further investigations into Boston Life.

Krill Inc./ Kroll Associates Inc. has assisted the Commission in the investigation, and the BVI FSC expects the investigation to be completely carried out in 3 months.

As far as the concerns have been recently raised, on July 13, 2007, the Commission issued a directive to the company. Currently, Boston Life and Annuity Company Limited is prohibited to enter into new contracts for insurance business for 90 days, until the notice by the BVI FSC.

No comments: