Source: Hong Kong Information Services
The Government today gazetted subsidiary legislation related to the commencement of the insurance group-wide supervision framework on March 29, 2021.
Enacted in July 2020, the Insurance (Amendment) (No 2) Ordinance 2020 introduces the framework for the Insurance Authority to exercise direct regulatory powers over Hong Kong-incorporated holding companies of insurance groups.
The four pieces of subsidiary legislation are the Insurance (Amendment) (No 2) Ordinance 2020 (Commencement) Notice, the Insurance (Designation & Annual Fees for Designated Insurance Holding Companies) Regulation, the Insurance (Prescribed Fees) (Amendment) Regulation 2020 and the Insurance (Group Capital) Rules.
The Financial Services & the Treasury Bureau said the Insurance Authority is the group supervisor of three international insurance groups. The selection of Hong Kong as the jurisdiction for carrying out group-wide supervision for international insurance groups has clearly demonstrated the advantages that Hong Kong possesses as an international financial centre and insurance hub.
The bureau said implementing the group-wide supervision framework will help align Hong Kong’s insurance regulatory regime with international standards and practices.
It is a testament of the Government’s commitment to reinforce Hong Kong’s status as an international financial centre and establish the city as a preferred base for large insurance groups in the Asia Pacific, it added.
The four pieces of subsidiary legislation will be tabled before the Legislative Council for negative vetting on January 6, 2021.