Insurance Brokers

It has come to the attention of the Registrar of Companies that certain Insurance brokers may not be acting in compliance with their obligations as set out in the Companies Act 2014, to file a full set of financial statements in the Companies Registration Office, with their annual return.

Section 350 of the Companies Act 2014 sets out the qualifying criteria for small and medium sized companies who wish to claim an abridgment exemption from filing full accounts under the terms of section 352 of the Act.

However, it should be noted that Section 350 subsection 11 (b) of the act excludes certain types of companies from claiming this exemption.
Provided for in Section 350.

Section 350 (11) (b) provides:
“This section shall not apply to a company if it is-
(a) ……
(b) A company falling within any provision (in so far as applicable to a private company limited by shares) of Schedule 5.”

Therefore, as Schedule 5 companies cannot qualify as small or medium companies under the terms of section 250 they cannot claim either an abridgment or audit exemption under the terms of section 352 and 358 of the Act.

Schedule 5 to the Companies Act 2014 lists companies which are excluded.

These include at sections 15 and 17 of the Schedule the following:
“15. Any other company the carrying on of business by which is required, by virtue of any enactment or instrument thereunder, to be authorised by the Central Bank.
16 …
17. A company that is an insurance intermediary within the meaning of the Insurance Act 1989.”

Please note that as an Insurance Broker cannot claim either the audit or abridgment exemptions as provided for in Section 352 and 358, they must, therefore, file full audited accounts at all times.