This circular explains the insurance requirements for licensed corporations engaging in regulated activities, specifically dealing in securities or futures contracts. The Securities and Futures Ordinance mandates licensed corporations to take out and maintain insurance for specified risks. An Industry Working Group, with support from the SFC, has re-appointed Marsh (Hong Kong) Limited as the insurance broker and scheme administrator for the scheme year 2023/2024. Under the master policy of insurance, participants will be indemnified for financial losses due to fidelity risks subject to an indemnity limit of $15 million per regulated activity per year and a deductible amount of $3 million per claim or loss. The premium allocation is based on a minimum basic premium and variable premium, which will be allocated based on the annual turnover of individual participants during the previous calendar year. A premium loading and discount will apply to certain participants. Marsh will provide administrative services to the participants and send them the debit note and insurance documents.
resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/circular/doc?refNo=23EC17