Bermuda Monetary Authority’s Decisive Move Leaves 2,000+ Policyholders in Financial Limbo
In a landmark decision on October 3, the Supreme Court of Bermuda granted the Bermuda Monetary Authority’s (BMA) petition to wind up Custodian Life (CL), marking a controversial conclusion to a complex regulatory intervention that has raised serious questions about investor protection and regulatory discretion.
The court’s ruling comes after a tumultuous two-year process that has left over 2,000 policyholders facing unprecedented uncertainty about their retirement investments and life savings. At the center of the controversy are BMA officials Susan Davis-Crockwell and Gerard Gakundi, whose actions have been scrutinized for their approach to the insurance company’s regulatory oversight.
Key Developments:
- Internal communications reveal that BMA officials acknowledged Custodian Life as “financially sound” in July and August 2022
- The company’s appeal was reportedly left unaddressed for nearly a year, despite a statutory one-month response deadline
- Deloitte’s involvement resulted in over US$4 million in billings with limited restructuring progress
The liquidation process has raised significant concerns about Bermuda’s reputation as a financial center. Policyholders are left questioning the regulatory approach that has effectively frozen their investments, with Deloitte’s liquidators now positioned to manage the assets for the next 7-10 years.
A particularly contentious aspect of the proceedings involves the former CEO, Joakim Samuelsson, who claims he was not properly notified of court proceedings, effectively preventing his participation in the critical hearings.
The real fight, as some observers suggest, is far from over, with potential legal challenges and investigations likely to follow in the coming months.
