4 Sep 2020
The Insurance Authority launched a six-week public consultation on the draft Insurance (Special Purpose Business) Rules (the “SPB Rules”) to tie in with the expected implementation of the new regulatory regime for the issuance of insurance-linked securities (“ILS”) in Hong Kong in 2021.
ILS are sophisticated financial products which are considered unsuitable for the risk appetite of ordinary retail investors. The proposed SPB Rules are intended to protect the interests of ordinary retail investors by providing for restrictions on the sale of ILS, including the scope of eligible investors, a minimum investment size and offences against the contravention of sales restrictions.
The consultation paper is now available on the IA website. Members of the public are welcome to submit their comments to the IA on or before 16 October 2020 by email to firstname.lastname@example.org, by fax to 3899-9993, or by post to the IA Office on 19/F, 41 Heung Yip Road, Wong Chuk Hang, Hong Kong.