IA of Hong Kong to Regulate Insurance Intermediaries from September 23
IA of Hong Kong proposed to take over the regulation of insurance intermediaries from three Self-Regulatory Organizations (SROs) on September 23, 2019 (commencement date), with the Insurance Companies (Amendment) Ordinance 2015 (Commencement) Notice 2019 to be gazetted in May 2019 to complete the prerequisite. The SROs comprise the Insurance Agents Registration Board (established under the Hong Kong Federation of Insurers), the Hong Kong Confederation of Insurance Brokers, and the Professional Insurance Brokers Association. The takeover will mark a major milestone and a reformatory change for the insurance industry as IA will become the sole regulator of all insurance intermediaries in Hong Kong.
The new regulatory regime for insurance intermediaries will help enhance professional standards of insurance intermediaries, promote a fair and transparent regulatory framework, and encourage a modern and flexible approach to increase regulatory efficiency. On the commencement date, the remaining provisions of the Insurance Companies (Amendment) Ordinance 2015 will come into operation, together with an array of regulatory requirements for implementation of the new regulatory regime. Till now, IA has formulated the two set of rules, which are subsidiary legislation, and is finalizing other codes and guidelines in phases—Insurance (Maximum Number of Authorized Insurers) Rules and Insurance (Financial and Other Requirements for Licensed Insurance Broker Companies) Rules.
IA aims to ensure a successful and smooth transition to the new regime and is working closely with the SROs to prepare for the necessary handover arrangements. Insurance intermediaries that are "validly registered" with the SROs immediately before the commencement date will be deemed as licensees under the new regime. Those who are validly registered as responsible officers of insurance agencies or chief executives of insurance brokers will also be deemed as responsible officers of licensed insurance agencies or licensed insurance broker companies as appropriate under the new regime. Arrangements for online application for formal licences to be made by deemed licensees will be announced by IA after the commencement date. Complaints and disciplinary cases that are unresolved by the SROs before the commencement date will be handled by the IA but with reference to the relevant codes, guidance notes, and guidelines issued by the SROs.
Related Links
Keywords: Asia Pacific, Hong Kong, Insurance, Self-Regulatory Organizations, Regulatory Framework, Insurance Intermediaries, IA
Previous Article
FCA Plans to Move to New Regulatory Reporting PlatformRelated Articles
HKMA Sets Out Regulatory Treatment for Personal Loan Guarantee Scheme
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB Completes Targeted Review of Internal Models of Banks
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA on Regulatory Treatment of Loans Under Mortgage Guarantee Scheme
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA Consults on Rules and Reporting Forms for Investment Firms Regime
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HMT and BoE Decide to Explore Central Bank Digital Currency in UK
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA Sets Out Expectations on Use of Climate Risk Scenarios in ORSA
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
EC Sets Out Standards for MREL Reporting by Competent Authorities
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS to Advance Work on Suptech, Climate Risk, and Basel Monitoring
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
Bundesbank Updates AnaCredit Reporting Requirements
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
