Regulatory Alerts2023-02-17
Added
Issuance of Insurance (Prescribed Interests under Section 34(6)) Regulations 2023
The Monetary Authority of Singapore issued the Insurance (Prescribed Interests under Section 34(6)) Regulations 2023, which commenced on 17 February 2023. These regulations exclude investments from Participating Funds and unitised Investment-linked Funds from the major stake acquisition requirements of Section 34 of the Insurance Act 1966. This exemption recognizes that such investments are primarily for the benefit of policyholders rather than the insurer.
Circular No. ID 02/23 17 February 2023 To Chief Executives All Direct Life and Composite Insurers Dear Sir/Madam ISSUANCE OF INSURANCE (PRESCRIBED INTERESTS UNDER SECTION 34(6)) REGULATIONS 2023 The Monetary Authority of Singapore (“MAS”) has issued the Insurance (Prescribed Interests under Section 34(6)) Regulations 2023 (“the Regulations”) which commenced on 17 February 2023. 2 The Regulations will exclude investments, acquired or held, directly or indirectly, using any policy asset1 of the Participating Fund and the unitised portion of the Investmentlinked Fund, from the requirements set out in Section 34 of the Insurance Act 1966 on acquiring or holding a major stake in any corporation, as MAS recognises that investments made using these funds are for the primary benefit of the policyholders. 3 The Regulations are available on the MAS website (link). If you have any queries, please contact your company’s liaison officer in MAS. Thank you. Yours faithfully (sent via MASNET) DANIEL WANG EXECUTIVE DIRECTOR INSURANCE DEPARTMENT 1 Policy asset is defined in the Regulations and excludes the assets of the surplus account of the Participating Fund.