Enforcement

Pursuant to section 25 of the FSCA, between February and December 2025, the Commission consulted with the Minister responsible for Finance regarding the enforcement action being undertaken.

The Commission formally issued the following notices to Equity regarding the intended enforcement action on July 14, 2025:

1. LSED/DIR/1/2025 Directive: Prohibiting the Movement of Assets and Destruction or Tampering with Records.  
2. LSED 2025/01 Notice: Intention to Seize Management and Control of Equity Insurance Company Ltd.  and Appointment of Manager pursuant to section 8(1)(d) of the Financial Services Commission Act, 2010-21.
3. LSED 2025/02 Notice: Intention to Revoke Licence pursuant to section 25 of the Financial Services Commission Act, 2010-21. 

Equity was afforded at least 21 days to make representation in writing demonstrating why the Commission should not take the intended enforcement action(s). Equity submitted a Letter of Objection dated August 4, 2025. 

Having carefully considered the written representation made, the Commission issued a formal decision on August 13, 2025, confirming its intention to proceed to seize management and control of Equity and appoint Craig Waterman of PriceWaterhouseCoopers SRL (“PwC”) as Manager with effect from Monday, August 18, 2025, until further notice.

The formal decision notified Equity that, subject to the Manager’s reports, the Commission will make its final determination as to whether to revoke Equity’s licence within ninety (90) days of said appointment. 

The Commission wrote to and met with Equity on November 18, 2025 to advise of:  

1. the extension of the appointment of Mr. Craig Waterman as Manager; and   
2. the Commission’s determination that further enforcement action was necessary.  

In response, Equity initiated legal proceedings (Claim No. CIV1497/2025).  

The Commission issued Notice of Revocation effective December 31, 2025, the implications of which are as follows:  

• Equity is prohibited from issuing any new insurance policies;
• Equity is no longer permitted to renew any existing policies; and.
• All policies issued or renewed prior to December 31, 2025, will remain in force and legitimate claims emanating from same will be honoured during a one year runoff period.

According to section 25(4) of the FSCA, a financial institution that is aggrieved by the revocation of its licence, may within 30 days of the receipt of the notification under subsection (3), appeal to the Tribunal.  

Equity gave notice of its intention to appeal on January 30, 2026.

Under section 25 of the FSCA,  where the Commission revokes the licence of a financial institution and there is no appeal or the appeal is disallowed, notice of the revocation shall be published in the Official Gazette and in a daily newspaper published and circulating in Barbados.

According to section 29 of the FSCA, any party to an appeal determined by the Tribunal who is dissatisfied with the determination on a point of law may, within 14 days after the decision is given, appeal to the Court of Appeal in accordance with rules of court. 

The Court of Appeal may make any order or give any decision which might have been made or given by the Tribunal, and may, if it thinks fit, remit the case to the Tribunal with directions as to its determination by the Tribunal.

This enforcement action follows supervisory intervention including recent examinations which identified areas where Equity’s internal systems, controls, and governance require significant strengthening. While the Commission has issued previous directives aimed at remediation, further measures are now necessary to protect policyholders and ensure continued confidence of the non-bank financial sector.

The Commission’s findings indicate that regulatory intervention is necessary in order to protect the interests of policyholders and other stakeholders. As a responsible and prudent regulatory authority, the Commission has therefore resolved that pursuant to sections 8 and 25 of the FSCA, management and control of Equity should be seized.  

Subsequently, the Manager’s Report confirmed the Commission’s opinion that Equity is not maintaining high standards of financial probity, or following sound business practices and has committed serious breaches of the FSCA, the regulations, the guidelines and the Insurance Act, Cap. 310. Therefore, having duly consulted with the Minister responsible for Finance, the Commission has determined that Equity’s Class 2 Licence should be revoked.    

The Commission is of the opinion that Equity has not maintained a high standard of financial probity or followed sound business practices. In particular, Equity has failed to comply with several provisions of the  Insurance Act, Cap. 310, the Financial Services Commission Act, 2010-21 (the “FSCA”),  the Money Laundering and Financing of Terrorism (Prevention and Control) Act, 2011-23 and Commission-issued Guidelines. 

Yes, all policies issued or renewed prior to December 31, 2025, will remain in force and legitimate claims emanating from same will be honoured during a one-year run-off period.  

Claims should continue to be notified and submitted in accordance with the claims provisions set out in your policy documentation, using the usual contact channels on your schedule and policy wording. 

Yes, your policy will remain in effect, and you should continue to make your premium payments to ensure you remain covered.

No. As a result of the revocation effective December 31, 2025, Equity is prohibited from issuing new insurance policies.

No. Following revocation, Equity is no longer permitted to renew existing policies.

Your current policy remains in force until its stated expiry date, subject to its terms and conditions.  

Please contact your insurance broker or adviser as soon as possible to discuss suitable alternatives and to ensure continuous cover beyond your current policy expiry. If you do not use a broker, you may wish to seek independent advice or approach alternative insurers directly to obtain replacement cover ahead of expiration.

Yes, you may still engage with the company through its usual communication channels. 

Please do not contact the Financial Services Commission regarding your policy. The Commission is the regulator and is not in a position to provide assistance to policyholders, arrange cover, or handle customer service or claims enquiries, and therefore will be unable to assist with renewal or other policy-related matters.