Central Bank gov asked to disclose plan for Clico

They queried the direction of the “rescue” of CLICO after eight years under the Central Bank and Government, including the Bank’s apparent “regulatory forbearance” .

They also mulled the legality of this control (plus any fallout from such), the inordinate delay in returning billions of dollars to the taxpayer (and the impact of this on economic decision making), and the nature of recent ministerial statements seemingly at odds with the stated goals of the rescue under the Central Bank Act .

The letter posed seven questions .

While a 2011 Central Bank statement hit the past subordination of the interests of Clico, its policyholders and mutual fund investors to the private interests of Lawrence Duprey and Andre Monteil, the letter bemoaned that nothing has been done to declare the responsible parties to be unfit and improper to hold high office in the company .

“What is the Central Bank’s current position on the matter?” .

Secondly, given the removal of the risk of contagion from Clico to TT’s financial system plus the solvency of Clico’s Statutory Fund, doesn’t the Act now mandate the Central Bank now relinquish control? Thirdly, given that the Bank’s powers arise if CLICO’s state poses a risk to TT’s financial system, the letter asks if the Bank now thinks TT’s financial system is at risk of “disruption, substantial damage, injury or impairment”? If not, can the Bank carry on dealing with the assets and operations of the institution with impunity? Fourthly, given that only creditors’ and policyholders’ interests must guide the Bank’s rescue of Clico, can the Bank and Finance Minister pursue other goals such as unrelated government objectives as drivers of their rescue? Fifthly, was the acquisition of policyholder rights (The Resolution Plan) done under the Act’s Section 44 powers, and if so how does that action “preserve the rights of depositors and creditors of the institution” as the Act seems to demand? Sixthly, Who decides if to relinquish control of Clico - the Bank, Finance Minister, both, or other? Seventh, how will the Bank release the Clico companies without the former CL Financial principals regaining positions as directors, officers or controlling shareholders?