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Consultation conclusions of the guidelines on “Fit and Proper” criteria and Continuing Professional Development requirements for licensed insurance intermediaries


31 July 2019


The Insurance Authority (IA) today (31 July 2019) published the consultation conclusions in respect of two draft regulatory instruments - the Guideline on “Fit and Proper” Criteria for Licensed Insurance Intermediaries under the Insurance Ordinance (Cap. 41) and the Guideline on Continuing Professional Development for Licensed Insurance Intermediaries1.

A majority of respondents supported the proposal to enhance the minimum education requirements of licensed insurance intermediaries with a view to raising their quality of service and professionalism. In future, new licensees must attain a standard of Level 2 or above for five subjects in the Hong Kong Diploma of Secondary Education Examination (including Chinese or English and Mathematics), while new Responsible Officers of insurance agencies and broker companies must possess a bachelor degree in addition to the requisite experience. The proposed organisational competence requirements on insurance agencies and broker companies also received widespread endorsement.

Similarly, broad agreement was expressed on the proposal to increase the minimum Continuing Professional Development (CPD) hours from 10 to 15 per year (including three hours on “ethics or regulations”), and the acceptance of e-learning courses for this purpose.

In order to facilitate implementation, certain exemptions and transitional arrangements are provided for existing practitioners. The two guidelines will take effect immediately upon commencement of the new statutory regulatory regime for insurance intermediaries on 23 September 2019, except for the new minimum CPD hours which will come into operation on 1 August 2021.

Ends

Note:

1Consultation papers were issued by the IA on 28 September 2018, and a total of 74 written submissions were received during the consultation period ending on 30 November 2018.