The International Financial Services Centres Authority has notified the IFSCA (Insurance Intermediary) Regulations, 2021, vide notification dated October 18, 2021. The Regulation seeks to inculcate the process of registration and operations of insurance intermediaries in an International Financial Services Centre under the regulatory purview of The International Financial Services Centres Authority Act, 2019.
Key highlights:
- An application for the grant of certificate of registration to act as an insurance intermediary shall be an Insurance distributor like Composite Broker, Corporate Agent, Direct Broker, Reinsurance Broker or an Insurance claim service provider.
- An applicant registered as an intermediary or insurance intermediary with IRDAI and desirous of setting up branch office in an unincorporated form in an IFSC, shall hold a valid certificate of registration issued by IRDAI, which is not withdrawn, cancelled or suspended and should have obtained a “No-objection Certificate” from IRDAI to establish branch office in IFSC.
- An entity seeking registration as a capital market intermediary shall comply with the net worth requirements as specified in Schedule II of these regulations or such other amount as may be specified by the Authority.
- The Authority on being satisfied that the applicant fulfils the conditions, shall first issue an in-principle approval to the applicant for compliance with requirements such as, minimum capital infusion, training requirements of branch head, professional indemnity policy and such other requirements as may be deemed necessary by Authority for issuance of Certificate.
- The certificate of registration of a capital market intermediary shall be valid for such period as may be specified by the Authority, unless it is suspended or cancelled by the Authority.
- Every insurance intermediary shall submit to the Authority, a copy of the audited financial statements along with the auditor’s report thereon within thirty (30) days of holding of the annual general meeting or before 30th September every year, whichever is earlier, along with the remarks or observations of the auditor, if any, on the conduct of the business, state of accounts, etc., and a suitable explanation on auditor’s observations/remarks from the insurance intermediary.
- Every capital market intermediary shall abide by the Code of Conduct as specified in Schedule III.
- A registered capital market intermediary shall take adequate steps for redressal of grievances of the investors within one month of the date of the receipt of the complaint.