Regulatory Alerts2020-10-20
Added · Updated
Life Insurance Policy Replacement: Practices of AIs and Expected Standards
The Hong Kong Monetary Authority and Insurance Authority issue this circular to establish expected standards for Authorized Institutions regarding life insurance policy replacement. The document requires intermediaries to conduct thorough best interests assessments, implement robust point-of-sale checks, and maintain comprehensive post-sale monitoring to identify replacement transactions. Additionally, it mandates adequate internal controls, incentive structures that deter misconduct, and effective staff training to ensure compliance with regulatory obligations and protect customer interests.