Regulatory Alerts2019-10-22
Added · Updated
Explanatory Note on Licensing Requirements for Banking Sector under Regulatory Regime for Insurance Intermediaries
The Insurance Authority issued an Explanatory Note to clarify licensing requirements for banking sector entities engaging in regulated insurance activities under the regime effective September 2019. The document provides guidance on which banking activities constitute regulated activities under the Insurance Ordinance and includes FAQs to illustrate the necessary licensing obligations for authorized institutions and their staff. This guidance was developed in consultation with the Hong Kong Monetary Authority and various banking and wealth management associations.
Annex 1 ""i *~ ~'f,E_ 'rf}j feyJ , Insurance Authority ~5lfll1i'r'Jj:J'i>~~lM 1 19ft 19th Floor, 41 Heung Yip Road, Wong Chuk Hang, Hong Kong. ~t~Tel : (852) 3899 9983 ~tlEmail : enquiry@ia.org.hk 1iAFax: (852) 3899 9993 ~J:.LtWebsite: www.ia.org.hk 22 October 2019 Our Ref: MC/INT/5 To: Chief Executives of all authorized institutions Dear Sirs, Explanatory Note on Licensing Requirements for Banking Sector under Regulatory Regime for Insurance Intermediaries We are writing to inform you that an Explanatory Note on Licensing Requirements for Banking Sector under Regulatory Regime for Insurance Interme,diaries ("Explanatory Note") has been issued today and is available on our website www.ia.org.hk. The new regulatory regime for insurance intermediaries came into operation on 23 September 2019. It is an activity based regime and applies to any person carrying on a regulated activity. The Explanatory Note aims to provide guidance on the extent to which certain banking activities related to insurance would be regarded as regulated activities under the Insurance Ordinance (Cap. 41 ), and thus requiring licensing of the relevant authorized institution and its staff. It contains a set of Frequently Asked Questions ("FAQs") to illustrate the relevant requirements. The FAQs are not intended to be exhaustive, and will be kept under review and updated when necessary. The Explanatory Note is prepared in consultation with Hong Kong Monetary Authority, the Hong Kong Association of Banks, the Private Wealth Management Association, and the DTC Association. Should you have any queries on the Explanatory Note, please contact Mr Alan Wu at 3899 9748 or Ms Mandy Tang at 3899 9736. Yours faithfully, ~epheRPo Executive Divector Market Conpiuct Division Insurance Authority c.c. Hong Kong Monetary Authority Encl. The Hong Kong Association of Banks Private Wealth Management Association The DTC Association