Implementation of New Regulatory Regime for Insurance Intermediaries

Introduction

Currently, insurance intermediaries are regulated by three Self-Regulatory Organizations (“SROs”), namely the Insurance Agents Registration Board set up by The Hong Kong Federation of Insurers, The Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association.  The Insurance Companies (Amendment) Ordinance 2015 (“Amendment Ordinance”), which was enacted on 10 July 2015, provides for, among other things, the establishment of a new statutory licensing regime for insurance intermediaries.  Upon the commencement of section 74 of the Amendment Ordinance, on a date to be published in Gazette, the Insurance Authority (“IA”) will take over the regulatory functions from the SROs to license and supervise all insurance intermediaries in Hong Kong.  The IA will be entrusted with a range of regulatory powers, including:
 

• Issuing rules, codes and guidelines to set out licensing, conduct and other related requirements
• Processing and approving insurance intermediary licence applications
• Monitoring on-going compliance with the Insurance Ordinance by licensed insurance intermediaries
• Exercising powers of inspections and investigations
• Imposing disciplinary sanctions on substantiated cases

IA proposes to take over the regulation of insurance intermediaries from the three SROs on 23 September 2019, with the Insurance Companies (Amendment) Ordinance 2015 (Commencement) Notice 2019 to be gazetted in May 2019 to complete the prerequisite.  For more details, please click here.  



I.          New Statutory Requirements

II.         Preparatory Works

III.        Proposed New Rules, Codes and Guidelines

IV.        Applicable Rules Issued by the SROs