The following press release is issued jointly by the Insurance Authority and the Hong Kong Monetary Authority:
Pursuant to the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance (IO) and the approval of the Chief Executive in Council, the Insurance Authority (IA) today (19 July 2019) announced to delegate its inspection and investigation powers to the Monetary Authority (MA), taking effect on 23 September 2019 when the statutory regime comes into operation.
The MA is responsible for supervising authorized institutions1 (AIs) in accordance with the Banking Ordinance. The IA, under the statutory regime, is responsible for regulation of insurance intermediaries which includes granting of licences, setting regulatory requirements and conduct standards, conducting inspections and investigations, and imposing disciplinary sanctions, etc. The delegation of IA’s powers of inspection and investigation to the MA in relation to insurance related businesses of AIs aims to improve efficiency and to minimise possible regulatory overlap.
To strengthen the co-operation between the IA and the MA under the statutory regime and to ensure regulatory consistency, the two parties today entered into a new Memorandum of Understanding (MoU) which sets out, amongst others, the arrangements on supervision, complaint handling and enforcement in relation to insurance related activities carried on by AIs.
“At present, the insurance intermediary businesses are carried on by over 40 AIs. Close collaboration between the IA and the Hong Kong Monetary Authority (HKMA) helps enhance efficiency and efficacy in regulating these institutions.” said Mr Clement Cheung, Chief Executive Officer of the IA.
Mr Norman Chan, the Chief Executive of the HKMA, said, “The delegation of inspection and investigation powers by the IA to the MA supports effective supervision of insurance related activities carried on by AIs. We look forward to continuing the close collaboration with the IA.”
Hong Kong Monetary Authority
19 July 2019