Regulatory Alerts2018-10-10
Joint Communication 3 of 2018: Temporary Continuation of Intermediaries Guarantee Facility Business
The Prudential Authority has issued Joint Communication 3 of 2018 to grant the Intermediaries Guarantee Facility (IGF) a temporary exemption from prudential requirements, allowing it to continue accepting new business until 31 March 2019. This exemption facilitates a phased transition from the legacy security-based premium collection framework to the new prudential standards introduced by recent amendments to the Short-term Insurance Act Regulations. Insurers are explicitly required to independently verify that authorized intermediaries meet fitness, operational, and risk mitigation criteria under Regulation 4.1(5), as relying solely on IGF coverage will no longer satisfy compliance obligations after the deadline.
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