Alternative determination of independence by Nominating Committee
14.—(1) The Nominating Committee of a Tier 1 insurer may determine that a director of the insurer who is —
(a)
not considered independent from business relationships with the Tier 1 insurer under regulation 5(3)(a) or (b); or
(b)
not considered independent from a substantial shareholder of the Tier 1 insurer because of the relationship specified in regulation 6(3)(a)(v) or (b)(v),
shall nonetheless be considered independent from business relationships with the Tier 1 insurer, or independent from a substantial shareholder of the Tier 1 insurer, as the case may be, if the Nominating Committee is satisfied that the director’s independent business judgment and ability to act in the interests of the Tier 1 insurer will not be impeded, despite the relationships specified in that regulation.
(2) If —
(a)
at any time, the Authority is not satisfied that a director of the Tier 1 insurer is independent notwithstanding any determination of the Nominating Committee made under paragraph (1); and
(b)
the lack of independence of that director would result in a failure by the Tier 1 insurer to comply with any of the requirements under regulation 7(1), 9, 11(1), 16(1), 17(1) or 18(1),
the Authority shall direct the Tier 1 insurer to rectify the composition of the Board or any relevant committee in accordance with the requirements under regulation 7(1), 9, 11(1), 16(1), 17(1) or 18(1), as the case may be, within such time, and subject to such conditions or restrictions, as the Authority may specify.
(3) Where the Authority has given a direction to a Tier 1 insurer under paragraph (2), the requirements under regulation 7(1), 9, 11(1), 16(1), 17(1) or 18(1), as the case may be, shall not apply to the Tier 1 insurer during the period between the time the Authority makes the direction and the time within which the Tier 1 insurer is required to rectify the composition of the Board or any relevant committee in accordance with the direction.