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
Previous ArticleESMA Updates Manual for European Single Electronic Format in EU
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.