CBL Corporation Limited (CBL), announced today that its 71% owned subsidiary, Securities & Financial Solutions SA (SFS) based in Luxembourg, has been issued with a fine of €5,000 (~NZD$8,500) by Commissariat aux Assurances (CAA), the insurance regulator in Luxembourg, after determining that SFS has been operating outside certain aspects of its insurance authority.
In making its decision, the CAA has granted SFS the right to appeal it, and after taking appropriate legal advice, SFS is doing so. SFS believes that the decision is incorrect, and inconsistent with other European jurisdictions. The appeal is being filed on 3rd January 2018 and is expected to be heard in January.
In the meantime, and until the appeal has been heard, SFS has made arrangements to continue its operations under alternative licensing arrangements it has in place with its insurers (including CBL subsidiary CBL Insurance Europe DAC, Dublin).
Apart from increased pressure from competitors emboldened with the news, SFS does not believe the change in operating procedures will materially affect its operating revenues for FY17 or FY18.
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