In a landmark first ruling, the newly established Financial Services Commission Appeals Tribunal has rejected a motion by the Financial Services Commission (FSC) to suspend appeal proceedings initiated by Equity Insurance Company Limited. The decision was delivered on Thursday by tribunal chair Christopher Blackman, a retired High Court judge, during a case management conference.
The FSC, represented by attorney Amanda Best, had petitioned for a stay of the appeal pending the outcome of a separate winding-up application against the insurer currently before the High Court. That case was recently adjourned until March 25.
Opposing the regulator’s request, Equity’s legal counsel Larry Smith characterized the FSC’s application as “high-handed.” Smith argued that the FSC had created an impossible situation for Equity by revoking its license in December while failing to establish the necessary appeals tribunal until February 20, effectively leaving the company without recourse for two months.
“The FSC stepped into Equity’s affairs, made their decisions, issued the revocation notice, but failed to put in place the legislative mechanism that would allow Equity to advance its appeal,” Smith contended. “Now they seek a stay without presenting any legal basis for such application.”
After considering arguments from both sides and consulting with fellow tribunal members Nigel Bennett and Connie Smith, Justice Blackman dismissed the FSC’s application. The tribunal chair emphasized that the regulator should have sought a stay order from the High Court when they had the opportunity, rather than approaching the appeals tribunal after the fact.
The conference established procedural guidelines for the appeal process, setting March 26 as the deadline for the FSC to respond to an affidavit filed by Equity Managing Director Karis Pounder. Equity will then have until April 14 to submit any rebuttal to the commission’s response.
The tribunal has scheduled its next session for April 30 to review progress and determine future proceedings, with the substantive appeal hearing likely occurring between late May and early June. The three-member tribunal, appointed for an initial two-year term, convened at the Henry Forde and David Simmons Legal and Judicial Complex in The City.