HKMA issued a circular to all authorized institutions on the explanatory note, issued by IA of Hong Kong, on licensing requirements for banking sector under the regulatory regime for insurance intermediaries. The regulatory regime for insurance intermediaries is an activity-based regime that came into operation on September 23, 2019. Under the regime, any person carrying on a regulated activity under the Insurance Ordinance is required to be licensed by IA. The explanatory note provides guidance on the extent to which certain insurance-related banking activities would be regarded as regulated activities and thus authorized institutions and their staff would be required to be licensed under the Insurance Ordinance.
The note contains a set of frequently asked questions (FAQs) to illustrate the relevant requirements. The FAQs are not intended to be exhaustive and they will be kept under review and updated when necessary. The explanatory note has been prepared in consultation with HKMA, Hong Kong Association of Banks, Private Wealth Management Association, and DTC Association. Authorized institutions should study the explanatory note carefully and put in place adequate policies, procedures, and controls as well as provide sufficient training to their staff to ensure compliance with the relevant requirements under the Insurance Ordinance.
Keywords: Asia Pacific, Hong Kong, Banking, Insurance, Regulatory Regime, Insurance Intermediaries, Insurance Ordinance, Guidance, FAQ, IA, HKMA
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).