Joint provisional liquidators have hit back at repeated complaints in connection with the decision by the Bermuda Monetary Authority to petition for the provisional winding-up of Custodian Life.

JPLs have established a new webpage for the company, and on Tuesday, they invited interested parties to bookmark the page as the dedicated and official source for updates on the company’s provisional liquidation proceedings.

This, they say after failing to gain access to the original domain.

A statement from the BMA today said it was “aware” of the Tuesday statement from the JPLs, Marcin Czarnocki and John Johnston, of Deloitte Financial Advisory Ltd.

Repeated complaints are being made to the Ministry of Finance and the ombudsman by those claiming to be policyholders and independent financial advisers.

The Supreme Court ordered the JPLs appointed on November 24, 2023, for restructuring only, not winding up the company, to protect policyholders’ interests after failures in statutory filings and alleged financial irregularities.

But purported policyholders and IFAs have claimed the BMA acted “illegally to destroy a financially sound and fully audited business,” with “unclear” reasoning and “undue delays” in the continuing investigation.

One critic even suggested that a public inquiry be launched into the regulator’s actions and questioned the manner in which the JPLs have conducted their duties.

The JPLs also said: “Individuals at the BMA have been subjected to profanities, personal attacks and highly inappropriate commentary. The JPLs and their staff have also been the target of similarly inappropriate personal slurs and derogatory remarks. These actions are not acceptable.”

The JPL appointments were made by agreement between the BMA and Custodian’s sole director and principal, Joakim Samuelsson.

Liquidators said before the presentation of the winding-up petition on November 6, 2023: “Custodian had not filed audited accounts, nor completed all requisite statutory filings in proper form, since 2021, the last audited accounts having been filed in respect of the financial year ended 31 December, 2020.”

The JPL statement said Mr Samuelsson consented to their appointment after reviewing the investigator’s report showing Custodian had failed or refused to co-operate with the investigator’s requests for information, and that its financial statements were defective.

The JPLs said: “It was for this reason that the BMA was unable to ascertain Custodian’s true financial position and determined that its policyholders were potentially at risk. Not only was the appointment of the JPLs effected with the full consent of Mr Samuelsson, but the Supreme Court of Bermuda saw fit to grant the BMA’s application and appoint the JPLs as court-appointed provisional liquidators of Custodian.

The statement said the BMA and the JPLs had acted appropriately, noting: “Allegations or suggestions that there is a credible basis for a public inquiry into the BMA’s conduct have not been substantiated.

“Any policyholders, IFAs or other interested parties who consider themselves aggrieved are always at liberty to approach and appear before the Supreme Court of Bermuda, which is the proper forum for the determination of any such matters.

“The court will consider any properly made applications or representations made by affected stakeholders in the course of these proceedings.

“The JPLs acknowledge the profound and ongoing impact that this prolonged period of uncertainty has had on policyholders. They have devoted [and continue to devote] extensive efforts to identifying a lawful, fair and practical solution to establish a mechanism to support all policyholders.

“Regrettably, the lack of information for over 60 per cent of the policyholder population has significantly hindered progress towards achieving this goal.”