Requirement for financial holding company

(1) If an insurer or insurance intermediary or proposed insurer or proposed insurance intermediary is, or is about to become, a member of a related group in which– (a) the activities of one or more member, in addition to the intermediary, proposed insurer or proposed insurance intermediary is limited to those permitted to a member of a financial group; and (b) the activities of one or more member is not limited to those permitted to a member of a financial group, a person who has a controlling interest in the insurer, insurance proposed insurer or proposed insurance intermediary is required to be a financial holding company described in sub-sections (2) or (3) and to register the financial holding company in accordance with section 7M. (2) For the purposes of sub-section (1), if the person who, directly or indirectly, has a controlling interest in the related group is a holding body corporate, the financial holding company is required to be another holding body corporate that is the immediate subsidiary of the first mentioned holding body corporate. (3) For the purposes of sub-section (1), if the person who, directly or indirectly, has a controlling interest in the related group referred to in sub-section (1) is an individual or unincorporated entity, the financial holding company shall be a holding body corporate of which the shares shall be directly held by that individual or unincorporated entity. (4) If, a person referred to in sub-section (1) is not a financial holding company in accordance with sub-sections (1) and (2) at the time this section comes into force, that person shall, within a period of two years– (a) comply with sub-sections (1) to (3); or (b) divest itself of its controlling interest in the insurer or insurance intermediary. 44 (5) A financial holding company required by this section shall apply to the Supervisor for registration pursuant to section