There has been a lot of articles about the new regulations regarding products, but nothing about the proposed regulation of intermediaries. It has currently only been issued on the Circular 22, however if no objection the consultation period will end May 12. It is expected that this will be quickly be adopted with an implementation period of two years.
I have put together the proposed new regulations.
Application for license and registration.
Application form to include:
a. Name of applicant, nationality, address and place of residence.
b. A copy of the Emirates ID for a resident and passport for the non-resident
c. A certified copy of the minimum qualification and membership from the entity accredited by the Authority.
d. A declaration that they have never been subject to disciplinary actions by any professional body that they belong to, or by the supervisory authorities in other jurisdictions.
e. A certified copy of the academic and professional qualifications.
f. An official certificate proving that the applicant has never been convicted for an offence involving moral turpitude or trustworthiness along with a declaration that the applicant has never been declared bankrupt or bankrupt and rehabilitated.
g. An undertaking to comply with all regulations and laws issued by the Authorities.
h. Proof of payment of the fees as per the regulations as well as any other documents requested by the Director General.
Approval/Rejection will be issued by the authorities within 20 business days from the date of completed application.
a. If any request for more information or documents, this must be submitted within 60 days of the date of the notification.
b. Failure to supply the information will result in the application being cancelled and a wait of 3 months before the applicant can submit another application
c. If approved and after payment of fees they will then be entered into the official register.
d. If rejected, they can appeal within 30 days of the rejection. (The Board of Directors decision shall be final)
e. The licence has a validity of maximum one year and expires on December 31.
f. On an annual basis, the insurance intermediary will submit a renewal with supporting documentation no less than 30 days prior to expiration of the license.
g. The intermediary must inform the authorities within 10 days of any change to the intermediaries’ documentation to ensure continued compliance.
a. All forms of commission abuse are strictly prohibited.
b. All complaints if in violation may subject the offender to suspension, non-renewal of withdrawal of their licence.
Once the new laws are published in the (monthly) Official Gazette, the new laws will be implemented as follows:
a. Fees and commission abuse effect on announcement in the Official Gazette.
b. Commissions, disclosure and regulations regarding pure protection is one year after the announcement in the Official Gazette.
c. All others have a two-year implementation period.
As can be seen, many of the proposed changes will be seen by the UAE advisory industry as Draconian, and will change the entire industry – to the benefit, many of us believe, of the industry’s clients.
The biggest news is that of the minimum requirements to become an insurance intermediary.
Consultation period will end May 11. If no change they will implement the new rules in a short space of time.