The new Section 90 of the Insurance Ordinance Cap. 41 (“Ordinance”) introduces statutory conduct requirements for licensed insurance agents and insurance brokers. The two proposed Codes of Conduct set out practices and standards ordinarily expected of licensed intermediaries. While these Codes of Conduct do not have the force of law, the IA will take them into account in considering whether the licensed intermediary is fit and proper, or has breached any statutory conduct requirements. These new statutory provisions are not yet in force but expect to commence shortly.
As to who needs to be licensed and the meaning and scope of regulated activities, please refer to a previous Legal Update on licensing for employees of insurance companies.
The proposed Codes of Conduct adopt a principle-based approach and focus on “treating customers fairly”. There are various disclosure requirements for both insurance agents and brokers. Part C of the proposed Codes of Conduct set out what the IA considers to be the fundamental principles of conduct which licensed intermediaries should adopt when carrying on regulated activities.
Read more here.