The Barbados Investors and Policyholders Alliance (BIPA) has welcomed the news that the Cabinet of the Government of Barbados has finally approved the proposals for the restructuring of the operations of CLICO International Life (CIL) contained in the Report and Addendum presented to the Barbados High Court in June 2013. The Alliance is also pleased that a projected timeline for completion of the plan has now been stated.
However, BIPA has requested a meeting with the CLICO Judicial Manager in order to go through, in detail, a number of elements of the plan, including the projected process and timing of the approval of the Court; the setting up of ‘NEWCO’, its ownership and management; and the latest position on the interest expressed by the Canadian group, and any other parties, in taking over the operations of CIL. The Alliance will also be asking for more detailed information on the Special Purpose Vehicle (SPV) to deal with CLICO’s real estate.
BIPA President June Fowler is particularly concerned that clarity is reached regarding the treatment of the EFPA policyholders. “We need a clear interpretation of the meaning of ‘principal’ insofar as it relates to individual EFPAs, as well as specific details on the nature of the annuities being offered to the EFPA policyholders, including the proposed interest rate, term and early cash-out options, especially for older policyholders,” says Fowler.
While frustrated at the length of time it has taken to get to this stage, the BIPA President feels there is now real light at the end of the tunnel. “Policyholders have suffered so many delays and setbacks,” she says, “that I hope all parties will co-operate to ensure that the process from this point forward is unhindered and finally leads to a satisfactory conclusion by year end.”