COBS 7.11.6 Insurance Money Segregation

An Insurance Intermediary or Insurance Manager when dealing with Insurance Monies must:

(a) maintain one or more separate Insurance Bank Accounts with an Eligible Bank in the U.A.E.;
(b) ensure that each Insurance Bank Account contains in its title the name of the Authorised Person, together with the designation Insurance Bank Account (or IBA);
(c) prior to operating an Insurance Bank Account, give written notice to, and receive written confirmation from, the Eligible Bank that the bank is not entitled to combine the Insurance Bank Account with any other account unless that account is itself an Insurance Bank Account held by the Authorised Person, or to any charge, encumbrance, lien, right of set-off, compensation or retention against monies standing to the credit of the Insurance Bank Account;
(d) pay all Insurance Monies directly and without delay into an Insurance Bank Account;
(e) use an Insurance Bank Account only for the following purposes:
(i) the receipt of Insurance Monies;
(ii) the receipt of such monies as may be required to be paid into the Insurance Bank Account to ensure compliance by the Authorised Person with any conditions or requirements prescribed by the Regulator;
(iii) the payment to Clients or to insurers of monies due under Insurance Intermediation Business transactions;
(iv) the payment of all monies payable by the Authorised Person in respect of the acquisition of or otherwise in connection with approved Assets;
(v) the withdrawal of brokerage, management fees and other income related to Insurance Intermediation Business, either in cash or by way of transfer to an account in the name of the Intermediary which is not an Insurance Bank Account, provided that no such sum may be withdrawn from the Insurance Bank Account before the time at which that amount may be brought into account as income of the Insurance Intermediary;
(vi) the withdrawal of monies paid into the Insurance Bank Account in error; and
(vii) the withdrawal of any monies credited to the Insurance Bank Account in excess of those required by any conditions and requirements prescribed by the Regulator;
(f) ensure that any amount held in the Insurance Bank Account or other Approved Assets, together with any amount due and recoverable from insurance debtors, is equal to, or greater than the amount due to insurance creditors; and
(g) take immediate steps to restore the required position if at any time it becomes aware of any deficiency in the required segregated amount.