Hong Kong regulator delegates powers over banks’ insurance businesses

Hong Kong’s Insurance Authority (IA) has delegated its inspection and investigation powers over insurance-related businesses of banks and other financial institutions to the Hong Kong Monetary Authority (HKMA). The agreement will take effect on September 23, the two regulatory bodies said in a joint statement. According to the statement, the HKMA is responsible for supervising authorised institutions (AIs) in accordance with the Banking Ordinance. The IA, under the statutory regime, regulates insurance intermediaries and is in charge of granting of licences, setting regulatory requirements and conduct standards, conducting inspections and investigations, and imposing disciplinary sanctions. The delegation of powers was made to improve efficiency and to minimise possible regulatory overlap with regard to insurance-related businesses of AIs.