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.
Keywords: Asia Pacific, Hong Kong, Insurance, Self-Regulatory Organizations, Regulatory Framework, Insurance Intermediaries, IA
Previous ArticleFCA Plans to Move to New Regulatory Reporting Platform
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.