HKMA and IA of Hong Kong jointly issued a statement announcing the delegation of the inspection and investigation powers of IA to HKMA, pursuant to the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance. This delegation of powers will take effect on September 23, 2019, which is when the statutory regime comes into operation.
HKMA is responsible for supervising authorized institutions in accordance with the Banking Ordinance. The IA, under the statutory regime, is responsible for regulation of insurance intermediaries and its purview includes granting of licences, setting regulatory requirements and conduct standards, conducting inspections and investigations, and imposing disciplinary sanctions. The delegation of IA’s powers of inspection and investigation to the HKMA in relation to insurance related businesses of authorized institutions aims to improve efficiency and to minimize possible regulatory overlap. To strengthen cooperation between IA and HKMA under the statutory regime and to ensure regulatory consistency, the two parties also entered into a new Memorandum of Understanding (MoU), which sets out the arrangements on supervision, complaint handling, and enforcement in relation to insurance-related activities carried on by the authorized institutions.
Related Link: Press Release
Keywords: Asia Pacific, Hong Kong, Insurance, Insurance Ordinance, Insurance Intermediaries, Inspection and Investigation Powers, Statutory Regulatory Regime, HKMA, IA
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