Consultation on the Proposed Guidelines on Fit and Proper Criteria for Licensed Insurance Intermediaries Under the Insurance Ordinance (Cap.41) and Continuing Professional Development for Licensed Insurance Intermediaries

Consultation on the Proposed Guidelines on Fit and Proper Criteria for Licensed Insurance Intermediaries Under the Insurance Ordinance (Cap.41) and Continuing Professional Development for Licensed Insurance Intermediaries

In September, the Insurance Authority (“IA”) released a consultation paper on drafts of the (i) Guideline on “Fit and Proper” Criteria for Licensed Insurance Intermediaries under the Insurance Ordinance (Cap. 41) (“F&P Guideline”); and (ii) Guideline on Continuing Professional Development for Licensed Insurance Intermediaries (“CPD Guideline”), for public views.

The draft F&P Guideline outlines the key criteria and matters that the IA will normally consider in determining whether a person is fit and proper. These criteria can be broadly grouped into three categories:

• education, qualifications or experience of the person;

• reputation, character, reliability and integrity of the person; and

• the person’s financial status or solvency.

The draft CPD Guideline on the other hand aims to standardise, modernise and update existing CPD requirements applicable to insurance intermediaries in line with new statutory requirements.

The two draft guidelines propose certain changes to the current requirements. Major proposals include setting minimum education requirements for individuals licenced under the new regime in order to ensure that they have the necessary language proficiency and numerical skills.

The Council has reviewed the consultation paper with the assistance of the Insurance Law Committee and endorsed a submission on the consultation questions posed. A copy of the submission can be found on the Law Society’s website:

https://www.hklawsoc.org.hk/pub_e/news/submissions/20181127.pdf

Jurisdictions: