In August, the Insurance Authority (“IA”) published the Consultation Paper on Draft Insurance (Group Capital) Rules (“Group Capital Rules”) for public consultation. IA indicated that the Group Capital Rules aim to tie in with the implementation of the new supervisory framework for multinational insurance groups (“GWS framework”) to be launched tentatively in the first quarter of 2021.
The proposed Group Capital Rules set out the requirements in relation to capital, regulatory reporting and public disclosure that apply to an insurance holding company in relation to its insurance group. The Group Capital Rules will apply to insurance holding companies which are designated by the IA as being subject to the GWS framework.
The Council has reviewed the consultation paper with the assistance of the Insurance Law Committee. The Law Society has made a submission on the consultation questions posed with comments on the legal and/ or drafting aspects of the draft Group Capital Rules. The full submission can be found on the Law Society’s website: http://www.hklawsoc.org.hk/pub_e/news/submissions/20200929.pdf