Regulatory Alerts2023-10-16
Added · Updated
Premium Financing Activities for Insurance Policies
The Hong Kong Monetary Authority issued this circular to address ambiguity in interest rate disclosures for premium financing facilities provided by authorized institutions. The regulator requires institutions to clearly disclose all interest rate components, including benchmark rates and discretionary cost of fund options, with equal prominence in facility letters. Authorized institutions must implement these disclosure standards for new facilities within three months and remediate deficiencies in existing arrangements.