Public Statement - Boston Life and Annuity Company Limited (13 July 2007)

The BVI Financial Services Commission (the "Commission") has issued this public statement pursuant to Section 37A.(4) of the Financial Services Commission Act, 2001.

The Commission considers it necessary to issue this public statement in order to protect the public interest or the interests of the customers, creditors or investors of Boston Life and Annuity Company Limited ("Boston Life").

The Commission wishes it to be known that:

1. Boston Life is licensed by the Commission to carry on general and long term insurance business from within the British Virgin Islands.

2. In April 2006, the Commission received complaints from Boston Life policyholders alleging that Boston Life had improperly terminated insurance policies under one of its insurance programs in an effort to deprive policyholders of a refund on unused premiums. The Commission immediately began investigations into the matter which lead to the issuance of Notices requiring Boston Life and Related Parties to produce documents and information (including Books and Records, Polices, Agreements and Contracts, Registers, and Investment Instruments). The Notices were issued on June 2nd, 2006 pursuant to Section 32 of the Financial Services Commission Act, 2001;

3. In July 2006, the Commission retained the services of Kroll Inc. / Kroll Associates Inc. (Kroll), to provide investigative assistance in the first instance by providing an expert Forensic Accountant to review substantial records that the Commission had obtained in the course of investigations.
Based on preliminary findings by Kroll, in January 2007, the Commission appointed Kroll as an examiner under section 36(1) (a) of the Financial Services Commission Act, 2001, (the "FSC Act") to conduct further investigations into Boston Life. The investigations are ongoing and the Commission expects the investigative efforts to be completed within the next three months.
In light of the concerns that have been raised thus far, on the 13th day of July, 2007, the Commission issued a directive to Boston Life under section 40(1)(a)(ii) of the FSC Act, requiring Boston Life to forthwith cease and desist from entering into any new contracts for insurance business for a period of ninety days from the date of the directive or until further notice by the Commission.

Robert A. Mathavious
Managing Director/CEO
British Virgin Islands Financial Services Commission
Pasea Estate, Tortola, British Virgin Islands
Telephone: (284) 494-4190
Facsimile: (284) 494-5016
E-mail: mailto:[email protected]
Website: www.bvifsc.vg
Hours: Monday – Friday 8:30 a.m. – 4:30 p.m.