2009-11-26
Aspis Liv license revoked
PRESS RELEASE
Aspis Liv does not have control of its assets and therefore does not meet the regulations governing coverage of liabilities. Without its assets, the company has negative solvency, i.e. the company has no coverage for the commitments it has undertaken with respect to its policyholders.
On November 12, FI decided to freeze Aspis Liv's right of disposal over its assets in Sweden since FI raised concerns that the company did not have control of its assets. At the same time, Aspis Liv was forbidden from entering into new insurance agreements.
It has now been determined that the majority of the company's assets are pledged in another country – and are beyond Aspis Liv's control.
This development, combined with other problems in the company such as prohibited payment of dividends and multiple instances of insufficient internal governance and control, means that the company cannot keep its license.
Furthermore, there are additional serious circumstances that have led FI to consider turning the matter over to the Economic Crimes Bureau. According to Aspis Liv's Managing Director, his signature was forged when the assets were pledged.
When an insurance company loses its license, it must be liquidated. Until the District Court has appointed a liquidator, which can take a few months, FI has taken over control of Aspis Liv's business activities. FI has engaged the services of lawyers Peter Morawetz and Robert Wikholm at Vinge Law Firm for the management assignment.
