Regulatory Alerts2026-06-05
Added · Updated
HKMA Circular on Remuneration Structures of Authorized Institutions as Licensed Insurance Intermediaries for Participating Policies
The Hong Kong Monetary Authority issued this circular to establish commission spreading requirements for authorized institutions acting as licensed insurance intermediaries in the bancassurance channel. The rules mandate that upfront commissions for participating policies with regular payment terms be capped at 85% by July 2027 and 70% by July 2028, with the remainder evenly spread over at least five years. Additionally, appointed technical representatives are subject to similar spreading rules unless their remuneration is determined by balanced scorecards that exclude separate commission components and adequately evaluate adherence to treating customers fairly principles.
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