Transitional Arrangement

Unresolved Cases relating to Alleged Contraventions of Applicable Rules that Occurred before 23 September 2019

From 23 September 2019, the day on which the Insurance Authority (“IA”) takes over the direct regulation of insurance intermediaries from the Self-Regulatory Organizations (“SROs”), onwards all complaint and non-compliance cases unresolved by the SROs will be handled by the IA by reference to the applicable rule ^[1] (such as the codes, guidance notes and guidelines issued by the SROs) that would have applied to the case had it been handled by the SRO concerned. The new conduct requirements under the new regulatory regime will not be retrospectively applied against insurance intermediaries. Similarly, IA will also handle any other cases of alleged contravention that occurred before 23 September 2019 (for example cases that came to light after 23 September 2019) with reference to the applicable rules that would have applied to the case had it been handled by the SRO concerned.

In the above circumstances, pursuant to section 113 of Part 6 of Schedule 11 to the Insurance Ordinance (Cap. 41) (“IO”), the IA may take one or more of the following actions:

• Directing that a statutory investigation be conducted under section 64ZZH of the IO;
• Commencing disciplinary proceedings;
• If appropriate, imposing a disciplinary sanction that could have been imposed had the case been handled by the SRO concerned;
• Dismissing the case.

The applicable rules have been published and made available by the IA under section 125(1) of Part 9 of Schedule 11 to the IO. Please click here to access the applicable rules.