Regulatory Alerts2022-05-17
Conduct Standard Requirements for Third Party Cell Captive Insurance Business
The Financial Sector Conduct Authority (FSCA) issued this consultation report to establish governance, oversight, and disclosure requirements for third-party cell captive insurance business. The draft Conduct Standard mandates comprehensive due diligence, restricts non-mandated intermediaries from holding multiple cell structures to mitigate conflicts of interest, and requires explicit disclosure of remuneration arrangements to policyholders. Following the review of 111 industry submissions, the FSCA confirmed that targeted exemptions and transitional provisions will preserve market competition while ensuring robust policyholder protection.
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