19 Entitlement to licence

(1)

An applicant is entitled to be issued with a licence if the Bank is satisfied that—

(a)

the applicant holds a current financial strength rating that complies with section 60 (unless a rating would not be required immediately after the issue of a licence as a result of the application of section 60(2)); and

(b)

the applicant has the ability to carry on its business or proposed business in a prudent manner; and

(c)

the applicant has the ability to comply with subpart 2 and the regulations; and

(d)

in the case of an applicant who carries on, or proposes to carry on, business as a life insurer, the applicant has the ability to comply with subpart 3 and the regulations; and

(e)

the applicant has the ability to comply with the proposed conditions of licence (if any); and

(f)

the applicant holds and has the ability to maintain a minimum amount of capital that is specified in an applicable solvency standard; and

(g)

the applicant has complied with section 18(1)(a) and (b) and the fit and proper policy that is provided is satisfactory; and

(h)

the applicant has complied with section 18(1)(c) and the risk management programme that is provided is satisfactory; and

(i)

the applicant’s incorporation and ownership structure, ownership, governance structure, and financial strength are appropriate, having regard to the size and nature of the applicant’s business or proposed business, including—

(i)

the size and type of insurance business that is, or is proposed to be, carried out; and

(ii)

the size and type of risks that are, or are proposed to be, insured; and

(j)

in the case of an applicant that is an overseas person,—

(i)

the law and regulatory requirements of the applicant’s home jurisdiction that apply to the applicant and relate to the matters specified in subsection (3) are appropriate, having regard to whether that law and those requirements are, in terms of achieving the purposes of this Act, at least as satisfactory as the law and regulatory requirements of New Zealand that relate to those matters and apply to insurers incorporated in New Zealand; and

(ii)

the nature and extent of prudential supervision that applies to the applicant and to insurers generally in the applicant’s home jurisdiction are appropriate, having regard to whether the prudential supervision is, in terms of achieving the purposes of this Act, at least as satisfactory as the nature and extent of prudential supervision that applies to insurers incorporated in New Zealand; and

(k)

the applicant—

(ii)

complies with section 13(a) of that Act; and

(l)

the applicant has the ability to comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (if the applicant is, or will be, a reporting entity under that Act); and

(m)

the applicant complies with any other prescribed requirements.

(2)

For the purposes of subsection (1)(c) and (d), the Bank must, in the case of an applicant that is an overseas person, have regard to any overseas policyholder preference.

(3)

For the purposes of subsection (1)(j)(i), the matters are—

(a)

the licensing, registration, or authorisation of insurers; and

(b)

the supervision of insurers; and

(c)

solvency and capital standards that apply to insurers; and

(d)

financial reporting, accounting, and auditing standards; and

(e)

corporate governance standards; and

(f)

matters concerning insurers that are insolvent or otherwise in serious financial difficulties; and

(g)

the disqualification of persons to be or to act as directors or relevant officers of an insurer.

(4)

The law and regulatory requirements referred to in subsection (1)(j)(i), and the nature and extent of the prudential supervision referred to in subsection (1)(j)(ii), must be treated as being appropriate for the purposes of those provisions if the applicant’s home jurisdiction is a prescribed jurisdiction for the purposes of this subsection.

(5)

If an applicant is not required under the Financial Service Providers (Registration and Dispute Resolution) Act 2008 to be registered under that Act, the applicant is still required to comply with section 13(a) of that Act for the purposes of subsection (1)(k).