Royal Credit wants IRA to rectify irregularity in Directline Assurance shareholding

Royal Credit Limited wants the Insurance Regulatory Authority (IRA) to rectify the anomalies in Directline Assurance shareholding.

The company has challenged the insurance regulator to either step in and rectify the issue or step aside and allow the Ethics and Anti-Corruption Commission (EACC) to investigate the matter.

In response to a statement by IRA early this week, Royal Credit says IRA has allowed violations of key provisions of the Insurance Act since 2012.

Royal Credit alleges that the regulator has failed to act on irregularities in Directline’s shareholding structure, despite multiple investigations, including one conducted jointly with the Business Registration Service (BRS).

The company says IRA cannot delegate these duties to other government agencies, as it has the duty of correcting through the right channels any circumstance that comes to its knowledge.

Royal credit further says IRA is fully aware of the shareholding structure as the same has been a subject of several investigations including one done jointly by IRA and BRS.

The company also says IRA needs to write to BRS stating the shareholding facts and asking that the CR12 be corrected.

Royal Credit is calling on the IRA to ensure the accuracy of Directline’s CR12 ownership document, warning that its current state puts policyholders' funds at risk.

They’ve also suggested that EACC should step in if IRA is unwilling to act.