—(1) The Authority may, on any of the grounds set out in paragraph (2), in writing direct the administrator to cancel the registration of any Service Company.
(2) The grounds referred to in paragraph (1) are —
that the Service Company has not commenced business within 12 months after being registered under regulation 6;
that the Service Company has ceased to act as an agent in Singapore for any member of Lloyd’s;
that it appears to the Authority that the Service Company has failed to satisfy an obligation to which it is subject by virtue of these Regulations;
that the Service Company proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;
that the Service Company is carrying on its business in a manner likely to be detrimental to the interest of the policy owners of insurance policies issued by any member of Lloyd’s or syndicate for which it acts as an agent;
that the Service Company has failed to ensure that suitable reinsurance arrangements have been effected as required under regulation 6A(2);
that any of the officers of the Service Company holding a managerial or executive position has been convicted of any offence under the Act or the regulations made thereunder;
that the Service Company has, in its application for registration under regulation 6(1), furnished false, misleading or inaccurate information, or concealed or failed to disclose material facts; or
that it is in the public interest to cancel the registration of the Service Company.
(3) Before the Authority directs the administrator to cancel the registration of a Service Company under paragraph (1), the Authority shall —
give the administrator and the Service Company notice in writing of its intention to do so; and
in the notice referred to in sub-paragraph (a), call upon the administrator and the Service Company to show cause, within such time as may be specified in the notice, why the Service Company’s registration should not be cancelled.
(4) If the administrator or the Service Company —
fails to show cause within the time given to it to do so or within such extended period of time as the Authority may allow; or
fails to show sufficient cause,
the Authority shall give notice in writing to the administrator of the date on which the cancellation of registration is to take effect.
(5) Notwithstanding the cancellation of the registration of a Service Company under this regulation, so long as the member of Lloyd’s or syndicate for which the Service Company acts as an agent remains under any liability in respect of insurance policies entered into by the Service Company, the Service Company shall take such action as it considers necessary or as may be required by the Authority to ensure that —
reasonable provision has been or will be made for that liability; and
adequate arrangements exist or will exist for payment of premiums and claims on those policies.
(6) Without prejudice to the generality of regulation 14(1), if a Service Company fails to comply with paragraph (5), the administrator shall use all reasonable efforts to procure, in respect of any liability or policies referred to in paragraph (5), the making of —
reasonable provision for such liability; and
adequate arrangements for payment of premiums and claims on those policies,
including but not limited to co-ordinating with or arranging for Lloyd’s or any other person to make such provision and arrangements in place of the Service Company.
(7) Where a direction of cancellation under paragraph (1) becomes effective, the Service Company shall, as from the date the cancellation of registration takes effect, cease to act as an agent for any member of Lloyd’s carrying on insurance business in Singapore, otherwise than by the collection or receipt of premiums on insurance policies effected before that date.
(8) Paragraph (7) does not prejudice —
any right or claim of any policy owner or other person against the member of Lloyd’s or syndicate for which the Service Company had acted as an agent; and
any right or claim of the member of Lloyd’s or syndicate for which the Service Company had acted as an agent against any policy owner or other person.
(9) Notwithstanding the cancellation of the registration of a Service Company under this regulation, regulations 13 and 21 shall, unless the Authority otherwise directs, continue to apply in relation to the Service Company and the administrator, respectively, in respect of matters that occurred before the cancellation, as if the registration had not been cancelled.