Regulatory Alerts2019-12-11
Final Conduct Policy Proposals for Third Party Cell Captive Insurance
The Financial Sector Conduct Authority has issued final policy proposals establishing stricter conduct requirements for third-party cell captive insurance to mitigate conflicts of interest and regulatory arbitrage. The framework imposes ownership limitations on non-mandated intermediaries, mandates robust risk-sharing and governance standards, and restricts dual profit-and-commission earning to prevent biased advice and mis-selling. These measures ensure cell captive insurers maintain direct oversight, deliver consistently fair policyholder outcomes, and resolve complexities in claims handling and complaints escalation.
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