Regulatory Alerts2008-12-18
Organizational Requirements for Insurance Brokerage Companies Establishing Insurance Agency Companies
The Norwegian Financial Supervisory Authority issued circular 13/2008 to clarify organizational requirements for insurance brokerage companies that establish insurance agency companies following the introduction of the commission ban. The authority mandates that while corporate structures can vary, there must be real independence between the entities, including separate premises and distinct sales channels, and explicitly prohibits dual employment of staff. To ensure compliance with good brokerage practice and the commission ban, companies must integrate risk assessments and control measures regarding these agency relationships into their internal control systems.
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