The Bermuda Monetary Authority has issued a prohibition order against Joakim Samuelsson, a director and controller of Custodian Life, barring him indefinitely from holding senior roles in the island’s insurance industry.

The regulator said the order, issued following the conclusion of an enforcement process, prohibits Mr Samuelsson “for an indefinite period” from acting as a controller, director, officer or senior executive of any entity registered under the Insurance Act.

The move marks an escalation in the long-running Custodian Life case, which has been in provisional liquidation since November 2023.

Court filings show the BMA has lost confidence in efforts to restructure or sell the insurer. In an affidavit filed last year and made public by OffshoreAlert, the Authority said it “sees no prospect of a restructure and absolutely no possibility of a sale”.

The regulator also warned that dragging out the process was harming policyholders, adding: “The Authority is concerned that the current status quo is no longer serving the interests of policyholders.”

According to the affidavit, attempts to stabilise the company have been stymied by a lack of access to key records and Mr Samuelsson’s refusal to co-operate. The affidavit noted that he has been held in contempt of court after failing to comply with orders to provide information.

Policyholders have said they cannot access funds and have complained of discrepancies in asset holdings and a lack of clear communication as the process has dragged on.

The BMA originally petitioned to wind up Custodian Life in November 2023, with joint provisional liquidators appointed to explore a restructuring.

However, nearly two years on, the regulator has indicated that a full winding-up may now be the only viable path forward as it seeks to bring certainty to policyholders.