Part I

Preliminary

(Format changes—E.R. 1 of 2013)

1.

Short title

This Ordinance may be cited as the

Insurance Ordinance

.

(Amended 12 of 2015 s. 4)

2.

Interpretation

(1)

In this Ordinance, unless the context otherwise requires—

Advisor

(

顧問

), in relation to an authorized insurer, means the person appointed, pursuant to section 35(2)(a), to be the Advisor of the insurer;

(Added 51 of 1992 s. 2. Amended 12 of 2015 s. 5)

Amendment Ordinance

(

《修訂條例》

) means the Insurance Companies (Amendment) Ordinance 2015 (12 of 2015);

(Added 12 of 2015 s. 5)

annuities on human life

(

人壽年金

) does not include superannuation allowances and annuities payable out of any fund applicable solely to the relief and maintenance of persons engaged or who have been engaged in any particular profession, trade or employment, or of the dependants of such persons;

applicable company

(

適用公司

) means—

(a)

a company that makes an application under section 7 (other than an application for authorization to carry on special purpose business); or

(b)

an authorized insurer (other than a special purpose insurer);

(Added 20 of 2023 s. 3)

Authority

(

保監局

) means the body corporate established under section 4AAA(1);

(Added 12 of 2015 s. 5)

authorized

(

獲授權

), in relation to an insurer, means authorized under section 8 or 8A, or deemed to be so authorized under section 61(1) or (2) of the pre-amended Ordinance having continuing effect by the operation of section 2(7) of Schedule 11, to carry on insurance business, and

authorization

(

授權

) has the corresponding meaning;

(Amended 12 of 2015 s. 5; 17 of 2020 s. 3)

authorized institution

(

認可機構

) has the meaning given by section 2(1) of the Banking Ordinance (Cap. 155);

(Added 12 of 2015 s. 5)

body corporate

(

法人團體

) includes a body incorporated outside Hong Kong;

bridge institution

(

過渡機構

)—see section 43 of the Financial Institutions (Resolution) Ordinance (Cap. 628);

(Added 23 of 2016 ss. 206A & 238. Amended E.R. 2 of 2017)

capital requirement

(

資本規定

)—see section 10(1);

(Added 20 of 2023 s. 3)

chief executive

(

行政總裁

) has the meaning given by section 9(2) or 95A(1) (as the case requires);

(Amended 18 of 2020 s. 3)

class

(

類別

), in relation to insurance business, means a class of insurance business which under section 3 is relevant for the purposes of this Ordinance;

client account

(

客户帳户

), in relation to a licensed insurance broker company, means the account maintained by the company as referred to in section 71(1)(b) for holding client monies;

(Added 12 of 2015 s. 5)

client monies

(

客户款項

), in relation to a licensed insurance broker company, means the monies of the company specified in section 71(2);

(Replaced 12 of 2015 s. 5)

company

(

公司

) means—

(a)

a company as defined by section 2(1) of the Companies Ordinance (Cap. 622); or

(b)

a non-Hong Kong company;

(Replaced 14 of 2025 s. 118)

contract of insurance

(

保險合約

) includes a contract of reinsurance;

(Added 20 of 2023 s. 3)

controller

(

控權人

)—see section 9;

(Replaced 12 of 2015 s. 5)

designated insurance holding company

(

指定保險控權公司

) has the meaning given by section 95A(1);

(Added 18 of 2020 s. 3)

designated insurer

(

指定保險人

) means a non-HK insurer in relation to which a designation under section 3B(1) is in effect;

(Added 20 of 2023 s. 3)

director

(

董事

)—

(a)

includes any person occupying the position of director (by whatever name called); and

(b)

in relation to a designated insurance holding company—also has the meaning given by section 95A(1);

(Replaced 18 of 2020 s. 3)

financial year

(

財政年度

), in relation to a body corporate, means the period in respect of which either of the following profit and loss accounts of the body corporate is made up, whether that period is a year or not—

(Amended 28 of 2012 ss. 912 & 920)

(a)

if the body corporate is not required to hold a general meeting to lay the profit and loss account, the profit and loss account provided to every member, as required by—

(Amended 14 of 2025 s. 118)

(i)

subject to subparagraph (ii), the law under which the body corporate is incorporated, or (in the absence of such requirement by such law) its constitution; or

(ii)

for a body corporate that is a re-domiciled company—the law of Hong Kong;

(b)

in any other case, the profit and loss account laid before the body corporate in a general meeting, as required by—

(Amended 14 of 2025 s. 118)

(i)

subject to subparagraph (ii), the law under which the body corporate is incorporated, or (in the absence of such requirement by such law) its constitution; or

(ii)

for a body corporate that is a re-domiciled company—the law of Hong Kong;

(Amended 28 of 2012 ss. 912 & 920; 14 of 2025 s. 118)

former accountant

(

前任會計師

) means a person who was formerly the accountant of—

(a)

an authorized insurer or a former insurer; or

(b)

a designated insurance holding company or former designated insurance holding company;

(Replaced 18 of 2020 s. 3)

former actuary

(

前任精算師

) means a person who was formerly the actuary of—

(a)

an authorized insurer or a former insurer; or

(b)

a designated insurance holding company or former designated insurance holding company;

(Replaced 18 of 2020 s. 3)

former auditor

(

前任核數師

)—

(a)

in relation to—

(i)

an authorized insurer;

(ii)

a former insurer;

(iii)

a licensed insurance broker company;

(iv)

a former licensed insurance broker company; or

(v)

a person who was formerly an authorized insurance broker within the meaning of the pre-amended Ordinance,

means a person who was formerly the auditor of the insurer, company or person; and

(b)

in relation to—

(i)

the supervised group of a designated insurance holding company; or

(ii)

the supervised group of a former designated insurance holding company,

means a person who was formerly the auditor appointed under section 95ZF for the group;

(Replaced 18 of 2020 s. 3)

former authority

(

前監督

) means the Insurance Authority appointed under section 4 of the pre-amended Ordinance;

(Added 12 of 2015 s. 5)

former insurer

(

前任保險人

) means a person who was formerly an authorized insurer;

(Added 59 of 1993 s. 2. Amended 12 of 2015 s. 5)

fully funded

(

全期資可抵債

)—see subsection (8);

(Added 17 of 2020 s. 3)

general business

(

一般業務

) means insurance business not being long term business or special purpose business;

(Amended 17 of 2020 s. 3)

gross premiums

(

毛保費

)—

(a)

means premiums—

(i)

after deduction of discounts specified in policies or refunds of premiums made in respect of any termination or reduction of risks; but

(ii)

before deduction of premiums for reinsurance ceded and of commission payable by the authorized insurer; and

(b)

includes premiums receivable by the insurer under contracts of reinsurance accepted by the insurer;

(Added 20 of 2023 s. 3)

group of companies

(

公司集團

) has the meaning given by section 2(1) of the Companies Ordinance (Cap. 622);

(Added 18 of 2020 s. 3)

HK insurer

(

香港保險人

) means—

(Amended 14 of 2025 s. 118)

(a)

an authorized insurer that is incorporated in Hong Kong; or

(b)

an authorized insurer that is a re-domiciled insurer;

(Added 20 of 2023 s. 3. Amended 14 of 2025 s. 118)

holding company

(

控權公司

) has the meaning given by section 13 of the Companies Ordinance (Cap. 622) for the purposes of that Ordinance;

(Replaced 28 of 2012 ss. 912 & 920)

insurance securitization

(

保險證券化

), in relation to an insurer, means any debt or other financing arrangement entered into by the insurer with an investor, under which repayment or return to the investor is linked to a contract of insurance effected and carried out by the insurer;

(Added 17 of 2020 s. 3)

insurer

(

保險人

) means a person carrying on insurance business but does not include Lloyd’s;

key person in control functions

(

管控要員

) has the meaning given by section 13AE(12) or 95A(1) (as the case requires);

(Replaced 18 of 2020 s. 3)

licensed individual insurance agent

(

持牌個人保險代理

) means an individual who is granted a licence under section 64W;

(Added 12 of 2015 s. 5)

licensed insurance agency

(

持牌保險代理機構

) means a person who is granted a licence under section 64U;

(Added 12 of 2015 s. 5)

licensed insurance agent

(

持牌保險代理人

) means—

(a)

a licensed insurance agency;

(b)

a licensed individual insurance agent; or

(c)

a licensed technical representative (agent);

(Added 12 of 2015 s. 5)

licensed insurance broker

(

持牌保險經紀

) means—

(a)

a licensed insurance broker company; or

(b)

a licensed technical representative (broker);

(Added 12 of 2015 s. 5)

licensed insurance broker company

(

持牌保險經紀公司

) means a company which is granted a licence under section 64ZA;

(Added 12 of 2015 s. 5)

licensed insurance intermediary

(

持牌保險中介人

) means—

(a)

a licensed insurance agent; or

(b)

a licensed insurance broker;

(Added 12 of 2015 s. 5)

licensed technical representative (agent)

(

持牌業務代表(代理人)

) means an individual who is granted a licence under section 64Y;

(Added 12 of 2015 s. 5)

licensed technical representative (broker)

(

持牌業務代表(經紀)

) means an individual who is granted a licence under section 64ZC;

(Added 12 of 2015 s. 5)

Lloyd’s

(

勞合社

) means the society of underwriters known in the United Kingdom as Lloyd’s;

long term business

(

長期業務

) means any of the classes of insurance business specified in Part 2 of Schedule 1;

(Amended 12 of 2015 s. 5)

majority shareholder controller

(

大股東控權人

)—

(a)

in relation to an authorized insurer—

(i)

means a person who, alone or with an associate (as defined by section 9(4)) or through a nominee, is entitled to exercise, or control the exercise of, 50% or more of the voting power at a general meeting of the insurer; but

(ii)

does not include a Manager; or

(b)

in relation to a designated insurance holding company—has the meaning given by section 95A(1);

(Added 20 of 2023 s. 3)

Manager

(

經理

), in relation to an authorized insurer, means the person appointed, pursuant to section 35(2)(b), to be the Manager of the insurer;

(Added 51 of 1992 s. 2. Amended 12 of 2015 s. 5)

Mandatory Provident Fund Schemes Authority

(

積金局

) means the Mandatory Provident Fund Schemes Authority established under section 6 of the Mandatory Provident Fund Schemes Ordinance (Cap. 485);

(Added 12 of 2015 s. 5)

material decision

(

關鍵決定

)—see section 3A(b);

(Added 12 of 2015 s. 5)

minimum capital amount

(

最低資本額

), in relation to an authorized insurer, means the minimum capital amount that is determined for the insurer in accordance with the rules made under section 129 by virtue of section 10;

(Added 20 of 2023 s. 3)

minority shareholder controller

(

小股東控權人

)—

(a)

in relation to an authorized insurer—

(i)

means a person who, alone or with an associate (as defined by section 9(4)) or through a nominee, is entitled to exercise, or control the exercise of, 15% or more but less than 50%, of the voting power at a general meeting of the insurer; but

(ii)

does not include a Manager; or

(b)

in relation to a designated insurance holding company—has the meaning given by section 95A(1);

(Added 20 of 2023 s. 3)

Monetary Authority

(

金融管理專員

) means the Monetary Authority appointed under section 5A of the Exchange Fund Ordinance (Cap. 66);

(Added 12 of 2015 s. 5)

non-HK insurer

(

非香港保險人

) means an authorized insurer that is not an HK insurer;

(Added 20 of 2023 s. 3)

non-Hong Kong company

(

非香港公司

) has the meaning given by section 2(1) of the Companies Ordinance (Cap. 622);

(Added 14 of 2025 s. 118)

policy

(

保單

)—

(a)

in relation to long term business, includes an instrument evidencing a contract to pay an annuity upon human life;

(b)

in relation to insurance business of any other class, includes any policy under which there is for the time being an existing liability already accrued or under which a liability may accrue;

policy holder

(

保單持有人

), except for the purposes of Part XIA, means the person who for the time being is the legal holder of a policy for securing a contract with an insurer, and—

(Amended 18 of 2020 s. 3)

(a)

in relation to such long term business as consists in the granting of annuities upon human life, includes an annuitant; and

(b)

in relation to insurance business of any other kind, includes a person to whom, under a policy, a benefit is due or a periodic payment is payable;

pre-amended Ordinance

(

《原有條例》

) means this Ordinance as in force immediately before the commencement date* of section 10 of the Amendment Ordinance;

(Added 12 of 2015 s. 5)

premiums

(

保費

) includes the consideration for the granting of an annuity;

(Added 20 of 2023 s. 3)

prescribed

(

訂明

) means prescribed by regulations made under section 128 or rules made under section 129 or 129A;

(Amended 35 of 1996 s. 2; 12 of 2015 s. 5; 17 of 2020 s. 3)

prescribed capital amount

(

訂明資本額

), in relation to an authorized insurer, means the prescribed capital amount that is determined for the insurer in accordance with the rules made under section 129 by virtue of section 10;

(Added 20 of 2023 s. 3)

prescribed fee

(

訂明費用

), in relation to any matter, means the fee payable under this Ordinance in relation to the matter and prescribed by a regulation made under section 128;

(Added 12 of 2015 s. 5)

prescribed person

(

訂明人士

) means—

(a)

an auditor, former auditor, actuary or former actuary of an authorized insurer or a former insurer—

(i)

who is appointed under section 15 or 15AAA or the rules made under section 129;

(ii)

who is appointed under section 15 as in force immediately before the commencement date# of section 23 of the Insurance (Amendment) Ordinance 2023 (20 of 2023); or

(iii)

who audits the forms and statements mentioned in paragraph 4(1A) of Part 1 of Schedule 3 as in force immediately before the commencement date# of section 98 of the Insurance (Amendment) Ordinance 2023 (20 of 2023);

(Replaced 20 of 2023 s. 3)

(b)

an accountant, former accountant, actuary or former actuary—

(i)

of an authorized insurer or a former insurer; and

(ii)

appointed by the insurer or former insurer in compliance with a requirement under section 35(1);

(Amended 18 of 2020 s. 3)

(c)

an auditor or former auditor of—

(i)

a licensed insurance broker company;

(ii)

a former licensed insurance broker company; or

(iii)

a person who was formerly an authorized insurance broker within the meaning of the pre-amended Ordinance;

(Replaced 12 of 2015 s. 5)

(d)

an auditor appointed under section 95ZF for, or a former auditor of—

(i)

the supervised group of a designated insurance holding company; or

(ii)

the supervised group of a former designated insurance holding company; or

(Added 18 of 2020 s. 3)

(e)

an accountant, former accountant, actuary or former actuary appointed in compliance with a requirement under section 95ZR by—

(i)

a designated insurance holding company; or

(ii)

a former designated insurance holding company;

(Added 18 of 2020 s. 3)

public

(

公眾

), except for the purposes of Part XIA, means the public of Hong Kong, and includes any class of that public;

(Added 12 of 2015 s. 5. Amended 18 of 2020 s. 3)

re-domiciled company

(

經遷冊公司

) has the meaning given by section 2(1) of the Companies Ordinance (Cap. 622);

(Added 14 of 2025 s. 118)

re-domiciled insurer

(

經遷冊保險人

)—see section 3BA or 3BB;

(Added 14 of 2025 s. 118)

regulated activity

(

受規管活動

)—see section 3A(a);

(Added 12 of 2015 s. 5)

regulated advice

(

受規管意見

)—see section 3A(c);

(Added 12 of 2015 s. 5)

reinsurance

(

再保險

) includes retrocession;

(Added 20 of 2023 s. 3)

resolution authority

(

處置機制當局

) has the meaning given by section 2(1) of the Financial Institutions (Resolution) Ordinance (Cap. 628);

(Added 23 of 2016 s. 206. Amended E.R. 2 of 2017)

Resolution Compensation Tribunal

(

處置補償審裁處

) means—

(a)

the Tribunal established by section 127(1) of the Financial Institutions (Resolution) Ordinance (Cap. 628); or

(Amended E.R. 2 of 2017)

(b)

an additional tribunal established under section 128(1) of that Ordinance;

(Added 23 of 2016 s. 206)

Resolvability Review Tribunal

(

處置可行性覆檢審裁處

) means—

(a)

the Tribunal established by section 110(1) of the Financial Institutions (Resolution) Ordinance (Cap. 628); or

(Amended E.R. 2 of 2017)

(b)

an additional tribunal established under section 111(1) of that Ordinance;

(Added 23 of 2016 s. 206)

responsible officer

(

負責人

)—

(a)

in relation to a licensed insurance agency, means an individual who is approved by the Authority as a responsible officer of the agency under section 64ZE; or

(b)

in relation to a licensed insurance broker company, means an individual who is approved by the Authority as a responsible officer of the company under section 64ZF;

(Added 12 of 2015 s. 5)

Securities and Futures Commission

(

證監會

) means the Securities and Futures Commission referred to in section 3(1) of the Securities and Futures Ordinance (Cap. 571);

(Added 12 of 2015 s. 5)

shareholder controller

(

股東控權人

)—

(Amended 20 of 2023 s. 3)

(a)

in relation to an authorized insurer—means a majority shareholder controller or a minority shareholder controller of the insurer; or

(b)

in relation to a designated insurance holding company—has the meaning given by section 95A(1);

(Added 18 of 2020 s. 3. Amended 20 of 2023 s. 3)

special purpose business

(

特定目的業務

) means the insurance business of effecting and carrying out contracts of insurance that are fully funded through insurance securitization;

(Added 17 of 2020 s. 3)

special purpose insurer

(

特定目的保險人

) means a company authorized under section 8A to carry on special purpose business only;

(Added 17 of 2020 s. 3)

subordinated loan stock

(

後償債權股額

), in relation to a company, means a loan which in the event of the winding up of the company is repayable by the company only after all of the liabilities of the company, other than those in respect of share capital, have been paid in full;

subsidiary

(

附屬公司

) has the meaning given by section 15 of the Companies Ordinance (Cap. 622) for the purposes of that Ordinance;

(Amended 28 of 2012 ss. 912 & 920)

supervised group

(

受監管集團

)—

(a)

in relation to a designated insurance holding company—see section 95D; and

(b)

in relation to a former designated insurance holding company—means the supervised group of the company when it was a designated insurance holding company;

(Added 18 of 2020 s. 3)

Tribunal

(

審裁處

) means the tribunal established under section 97.

(Added 12 of 2015 s. 5)

(Amended 25 of 1994 s. 2; 12 of 2015 s. 5; 20 of 2023 s. 3)

(2)

References in this Ordinance to an insurer include an insurer incorporated, established or formed in Hong Kong, or re-domiciled to Hong Kong, and carrying on insurance business outside Hong Kong, whether or not the insurer is also carrying on insurance business in or from Hong Kong.

(Amended 14 of 2025 s. 118)

(2A)

In this Ordinance—

(a)

a reference to a function includes a power and a duty; and

(b)

a reference to the performance of a function includes the exercise of a power and the discharge of a duty.

(Added 12 of 2015 s. 5)

(3)

For the purposes of this Ordinance, a person shall be deemed to carry on a class of insurance business in or from Hong Kong if—

(a)

he opens or maintains an office or agency in Hong Kong for the purpose of carrying on that class of insurance business in or from Hong Kong; or

(b)

he holds himself out as carrying on that class of insurance business in or from Hong Kong.

(4)

A person shall not be deemed to carry on insurance business in or from Hong Kong by reason only that any person acts as his agent for the purpose of settling claims under contracts of goods in transit insurance entered into wholly outside Hong Kong in respect of goods consigned to Hong Kong.

(5)

A person shall not be deemed to be within the meaning of any provision of this Ordinance a person in accordance with whose directions or instructions the directors of a company or other body corporate or any of them are accustomed to act by reason only that the directors of the company or body act on advice given by him in a professional capacity.

(6)

An insurer which is a company is subject to the Companies Ordinance (Cap. 622) and the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), as well as to this Ordinance, except that, where there is any conflict between this Ordinance on the one hand and the Companies Ordinance (Cap. 622) or the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) on the other, this Ordinance prevails.

(Added 51 of 1992 s. 2. Amended 28 of 2012 ss. 912 & 920)

(7)

For the purpose of this Ordinance—

(a)

captive insurer

(

專屬自保保險人

) means a company (relevant company) which is authorized to carry on general business only and such business—

(Amended 12 of 2015 s. 5)

(i)

does not relate to any liabilities or risks in respect of which persons are required by any Ordinance to be insured; and

(ii)

is restricted to the insurance and reinsurance of—

(A)

risks of the bodies corporate within the relevant company’s corporate group (within the meaning of paragraph (b)) to which the relevant company belongs;

(B)

the proportional share of risks of another body corporate to which the relevant company, or a first tier member (within the meaning of paragraph (b)(i)) in the relevant company’s corporate group, is exposed directly through—

(I)

controlling, or being entitled to control, the appointment or removal of a percentage of the directors on the board of directors of the other body corporate;

(II)

controlling, or being entitled to control, a percentage of the voting rights at general meetings of the other body corporate; or

(III)

holding a percentage of the issued share capital of the other body corporate,

that is capped at the highest of those 3 percentages; and

(C)

any other risks—

(I)

of which the relevant company, or a first tier member in the relevant company’s corporate group, has control, oversight or management; or

(II)

to which the relevant company, or a first tier member in the relevant company’s corporate group, is otherwise sufficiently connected,

as determined in accordance with the criteria specified for the purposes of this sub-subparagraph in guidelines published under section 133;

(Replaced 17 of 2020 s. 24)

(b)

relevant company’s corporate group

(

同一法人集團

) means a corporate grouping made up of a relevant company (within the meaning of paragraph (a)) and one or more of the following members—

(i)

a first tier member being a body corporate—

(A)

that belongs to the group of companies of the relevant company; or

(B)

that is a subsidiary of the holding company of the relevant company;

(ii)

a second tier member being a body corporate in respect of which the relevant company or a first tier member (whether alone or jointly with the relevant company or another first tier member)—

(A)

controls, or is entitled to control, the appointment or removal of not less than 20% and not more than 50% of the directors on the board of directors of the body corporate;

(B)

controls, or is entitled to control, not less than 20% and not more than 50% of the voting rights at general meetings of the body corporate; or

(C)

holds not less than 20% and not more than 50% of the issued share capital of the body corporate;

(iii)

a third tier member being a body corporate that is a subsidiary of a second tier member.

(Replaced 17 of 2020 s. 24. Amended 18 of 2020 s. 3)

(c)

(Repealed 18 of 2020 s. 3)

(8)

For the purposes of the definition of special purpose business, a contract of insurance entered into between an insurer and a person as the insured under the contract is fully funded if the value of the assets held under the terms of the contract by, or on behalf of, the insurer for the benefit of the insured is not less than the amount of the insurer’s liabilities (whether actual or potential) under the contract at any time and under all reasonably foreseeable circumstances, taking into account—

(a)

the obligations of the insurer towards the insured under the contract; and

(b)

the expenses the insurer expects to incur.

(Added 17 of 2020 s. 3)

(9)

A note located in the text of this Ordinance is provided for information only and has no legislative effect.

(Added 18 of 2020 s. 3)

(Amended E.R. 1 of 2015)

Editorial Note:

* Commencement date: 26 June 2017.

# Commencement date: 1 July 2024.

3.

Classes of insurance business

(1)

The classes of insurance business relevant for the purposes of this Ordinance shall be those specified in Schedule 1 and the provisions of that Schedule shall have effect accordingly.

(Amended 59 of 1993 s. 3)

(2)

If—

(a)

a contract (including a tontine) referred to in Part 2 or 3 of Schedule 1; or

(b)

a contract belonging to the class of special purpose business,

is not (but for this subsection) a contract of insurance, the contract is, for the purposes of this Ordinance, deemed to be a contract of insurance.

(Replaced 17 of 2020 s. 4)

(Amended 12 of 2015 s. 6)

3A.

Regulated activity, material decision and regulated advice

For the purposes of this Ordinance—

(a)

a person carries on a regulated activity if the person does an act specified in Part 1 of Schedule 1A;

(b)

a person makes a material decision if the person makes a decision in relation to a matter specified in Part 2 of Schedule 1A; and

(c)

a person gives regulated advice if the person gives an opinion in relation to a matter specified in Part 3 of Schedule 1A.

(Added 12 of 2015 s. 7)

3B.

Designation of non-HK insurer

(1)

If, in the opinion of the Authority, a non-HK insurer carries on a majority of its insurance business in or from Hong Kong, the Authority may, by a written notice served on the insurer, designate the insurer as a designated insurer.

(2)

If, in the opinion of the Authority, a non-HK insurer designated under subsection (1) no longer carries on a majority of its insurance business in or from Hong Kong, or becomes a re-domiciled insurer, the Authority may, by a written notice served on the insurer, withdraw the designation.

(Amended 14 of 2025 s. 119)

(3)

A designation under subsection (1)—

(a)

takes effect on the date specified in the notice under that subsection; and

(b)

ceases to have effect on the date specified in the notice under subsection (2).

(4)

If the Authority makes a designation under subsection (1) or withdraws a designation under subsection (2), the Authority must, as soon as practicable after the designation or withdrawal, publish in the Gazette a notice of the designation or withdrawal.

(Added 20 of 2023 s. 4)

3BA.

Non-HK insurer to become re-domiciled insurer

(1)

A non-HK insurer becomes a re-domiciled insurer if it—

(a)

becomes a re-domiciled company; and

(b)

is deregistered from its place of incorporation.

(2)

If a non-HK insurer becomes a re-domiciled insurer under subsection (1), the date on which it is deregistered from its place of incorporation is taken to be the date on which it becomes a re-domiciled insurer.

(3)

Before a non-HK insurer applies under section 820B of the Companies Ordinance (Cap. 622) for registration as a re-domiciled company for the purposes of subsection (1)(a), the non-HK insurer must apply to the Authority for, and receive from it, a letter of no-objection to the registration.

(4)

If a non-HK insurer contravenes subsection (3)—

(a)

the Authority may exercise its powers under Parts V and VA in relation to the contravention; and

(b)

the contravention does not affect the operation of subsection (1) in relation to the non-HK insurer.

(5)

An application made under subsection (3) must—

(a)

be in the specified form;

(b)

be accompanied by any information specified by the Authority; and

(c)

be served on the Authority.

(6)

After deciding on a non-HK insurer’s application under subsection (3), the Authority must give the insurer a written notice of the result of the application.

(7)

If the application made under subsection (3) is rejected by the Authority, the notice must include a statement of the reasons for the rejection.

(Added 14 of 2025 s. 120)

3BB.

Company incorporated outside Hong Kong that is not authorized insurer to become re-domiciled insurer

(1)

This section applies to a company (other than an authorized insurer) that—

(a)

is incorporated outside Hong Kong; and

(b)

later—

(i)

becomes a re-domiciled company; and

(ii)

is deregistered from its place of incorporation.

(2)

Such a company becomes a re-domiciled insurer if it becomes an authorized insurer.

(Added 14 of 2025 s. 120)

3BC.

Interpretation for sections 3BA and 3BB

In sections 3BA and 3BB—

deregister

(

撤銷註冊

) has the meaning given by section 820E(6) of the Companies Ordinance (Cap. 622);

place of incorporation

(

成立地

) has the meaning given by section 820A of the Companies Ordinance (Cap. 622).

(Added 14 of 2025 s. 120)

3C.

Determination of value of assets and amount of liabilities

For the purposes of this Ordinance—

(a)

subject to paragraph (b), in computing the amount of the liabilities of an applicable company—

(i)

all contingent and prospective liabilities must be taken into account; and

(ii)

liabilities in respect of the company’s share capital must not be taken into account;

(b)

the value of any assets and the amount of any liabilities of an applicable company must be determined in accordance with any applicable rules made under section 129(1)(a);

(c)

if no such rules are applicable to an applicable company—

(i)

in determining the value of its assets—regard must be had to their market value and the cost of realizing such assets; and

(ii)

in determining the amount of its liabilities—regard must be had to the cost of the settlement of the liabilities and, if the amount of the liabilities is assessed or estimated, to the experience of the company in carrying on any relevant insurance business or of other persons carrying on the same or similar insurance business.

(Added 20 of 2023 s. 4)

Part IA

Insurance Authority

(Added 12 of 2015 s. 8)

Division 1

Establishment and Functions, etc.

(Added 12 of 2015 s. 8)

4AAA.

Establishment of Authority

(1)

A body corporate is established with the corporate name of “Insurance Authority” in English and “保險業監管局” in Chinese.

(2)

The Authority is renamed as “Provisional Insurance Authority” in English and “臨時保險業監管局” in Chinese during the period—

(a)

beginning immediately after the establishment of the body corporate under subsection (1); and

(b)

ending immediately before the date on which section 10 of the Amendment Ordinance comes into operation.

(3)

The Authority—

(a)

has perpetual succession under its corporate name;

(b)

is required to have a common seal; and

(c)

is capable of suing and being sued in its corporate name.

(4)

To avoid doubt, the renaming of the Authority under this section does not—

(a)

affect any rights or obligations of the Authority; or

(b)

render defective any legal proceedings by or against the Authority.

(5)

On and after the expiry of the period specified in subsection (2), any legal proceedings that could have been commenced or continued against the Authority by its corporate name of “Provisional Insurance Authority” may be commenced or continued against the Authority by its corporate name of “Insurance Authority”.

(6)

During the period specified in subsection (2), section 53A(1) applies to the Authority and a person who is or has been a member, employee, agent, consultant or advisor of the Authority as if after section 53A(1AA)(b), the following were added—

“(baa)

the Authority;

(baab)

a person who is or has been a member, employee, agent, consultant or advisor of the Authority;”.

(Added 12 of 2015 s. 9)

4.

Authority

(Replaced 12 of 2015 s. 2)

(1)

(Repealed 12 of 2015 s. 10)

(2)

The Chief Executive may give directions generally or in a particular case with respect to the exercise by the Authority of any of its functions under this Ordinance, and the Authority shall comply with any such direction.

(Amended 12 of 2015 s. 2)

(Amended 31 of 1999 s. 3)

(Format changes—E.R. 1 of 2013)

4AA.

Composition of Authority

(1)

The Authority consists of the following members who are to be appointed by the Chief Executive—

(a)

a chairperson, who is a non-executive director of the Authority;

(b)

a chief executive officer, who is an executive director of the Authority; and

(c)

not less than 6 other executive or non-executive directors of the Authority.

(2)

The number of non-executive directors must exceed the number of executive directors.

(3)

Of the non-executive directors—

(a)

at least 2 are to be appointed from among persons who, because of their knowledge of and experience in the insurance industry, appear to the Chief Executive to be suitable for appointment; and

(b)

the others are to be appointed from among persons who, either because of their knowledge in actuarial science, accountancy, law or consumer affairs, or because of their professional or occupational experience, appear to the Chief Executive to be suitable for appointment.

(4)

The Authority may perform its functions despite a vacancy in its membership.

(5)

If this section ceases to be complied with, the Chief Executive must as soon as practicable make the necessary appointment to ensure that the requirements of this section are complied with.

(6)

Schedule 1B contains provisions on the constitution and proceedings of, and other matters relating to, the Authority.

(Added 12 of 2015 s. 11)

4A.

Functions of Authority

(Amended 12 of 2015 s. 2)

(1)

The principal function of the Authority shall be to regulate and supervise the insurance industry for the promotion of the general stability of the insurance industry and for the protection of existing and potential policy holders.

(Amended 12 of 2015 s. 2)

(2)

Without limiting the generality of subsection (1), the Authority shall—

(Amended 12 of 2015 s. 2)

(a)

be responsible for supervising an authorized insurer’s and a licensed insurance intermediary’s compliance with the provisions of this Ordinance;

(Replaced 12 of 2015 s. 12)

(b)

consider and propose reforms of the law relating to insurance business;

(c)

promote and encourage the adoption of proper standards of conduct and sound and prudent business practices by authorized insurers;

(Replaced 12 of 2015 s. 12)

(d)

promote and encourage the adoption of proper standards of conduct by licensed insurance intermediaries;

(Replaced 12 of 2015 s. 12)

(da)

review and, if necessary, propose reforms of the systems for regulating authorized insurers and licensed insurance intermediaries;

(Added 12 of 2015 s. 12)

(e)

(Repealed 12 of 2015 s. 12)

(ea)

regulate the conduct of insurance intermediaries through a licensing regime;

(Added 12 of 2015 s. 12)

(eb)

promote the understanding by policy holders and potential policy holders of insurance products and the insurance industry;

(Added 12 of 2015 s. 12)

(ec)

formulate effective regulatory strategies and facilitate the sustainable market development of the insurance industry, and promote the competitiveness of the insurance industry in the global insurance market;

(Added 12 of 2015 s. 12)

(ed)

conduct studies into matters affecting the insurance industry;

(Added 12 of 2015 s. 12)

(ee)

assist the Financial Secretary in maintaining the financial stability of Hong Kong by taking appropriate measures in relation to the insurance industry;

(Added 12 of 2015 s. 12)

(f)

co-operate with and assist financial services supervisory authorities of Hong Kong or of any place outside Hong Kong, whenever appropriate, to the extent permitted by this Ordinance; and

(g)

perform functions imposed or conferred on the Authority by this or any other Ordinance.

(Added 16 of 2012 s. 23. Amended 12 of 2015 s. 2 & 12)

(3)

(Repealed 12 of 2015 s. 12)

(Added 75 of 1995 s. 2. Amended 16 of 2012 s. 23. Format changes—E.R. 1 of 2013)

4B.

Powers of Authority

(1)

The Authority may do anything that is necessary for, or incidental or conducive to, performing any of its functions.

(2)

Without limiting subsection (1), the Authority may—

(a)

hold, acquire, lease, sell, charge, dispose of or otherwise deal with all kinds of property, whether movable or immovable;

(b)

enter into, carry out, assign, accept the assignment of, vary or rescind any contract, agreement, memorandum of understanding or other obligation;

(c)

with the approval of the Financial Secretary, borrow money on security or other conditions;

(d)

receive and expend monies;

(e)

accept gifts;

(f)

publish or otherwise make available materials on any matter relating to the performance by the Authority of any of its functions;

(g)

establish wholly-owned subsidiaries;

(h)

invest, in the manner approved by the Financial Secretary, its funds that are not required for immediate use;

(i)

do all things that the Authority thinks fit for its administration and management; and

(j)

exercise other powers that are conferred on the Authority under this Ordinance or any other Ordinance.

(Added 12 of 2015 s. 13)

4C.

Industry advisory committees

(1)

The Authority must appoint an industry advisory committee to advise it on any matters it refers to the committee in relation to long term business.

(2)

The Authority must also appoint another industry advisory committee to advise it on any matters it refers to the committee in relation to general business.

(3)

The Authority may, after consulting the Financial Secretary, establish additional industry advisory committees to advise it on any matters regarding the performance of any of its functions (other than matters in relation to long term business and general business).

(4)

Each industry advisory committee is constituted in accordance with Schedule 1C and must conduct its business in accordance with that Schedule.

(Added 12 of 2015 s. 13)

4D.

Authority may establish other committees

(1)

The Authority may establish one or more committees to assist it in a matter with which the Authority is concerned.

(2)

The Authority may refer a matter to a committee established under this section (committee) for consideration, inquiry or management.

(3)

The Authority—

(a)

may appoint a person to be a member of a committee, whether or not the person is a member of the Authority; and

(b)

may appoint a member of the committee to be the chairperson of the committee.

(4)

A reference of a matter to a committee does not prevent the Authority from performing any of its functions.

(5)

The Authority—

(a)

may withdraw a reference under subsection (2) from a committee; and

(b)

may revoke an appointment under subsection (3).

(6)

The Authority may give directions to a committee, whether generally or in a particular case, and whether regarding the manner in which the committee is to act or otherwise.

(7)

The committee must act in accordance with those directions.

(Added 12 of 2015 s. 13)

4E.

Staff and consultants of Authority

(1)

The Authority may employ persons for the remuneration and allowances, and on the terms and conditions, that the Authority determines.

(2)

The Authority may provide and maintain schemes (whether contributory or not) for the payment of retirement benefits, gratuities or other allowances to its employees and their dependants.

(3)

The Authority may engage consultants, agents and advisors to assist it in performing its functions.

(Added 12 of 2015 s. 13)

4F.

Delegation of Authority’s functions to its members, committees and employees

(1)

Subject to subsection (2), the Authority may delegate any of its functions to—

(a)

a member of the Authority;

(b)

a committee established under section 4D; or

(c)

an employee of the Authority, whether by reference to the name of the employee or to the office held by the employee.

(2)

A delegation must not be made—

(a)

in relation to the power of the Authority to delegate under this section; or

(b)

in relation to a function specified in Schedule 1D.

(3)

If the Authority delegates a function, it may at the same time authorize the delegate to sub-delegate the function.

(4)

The Authority may—

(a)

revoke a delegation, or an authorization for a sub-delegation;

(b)

attach restrictions or conditions to a delegation; or

(c)

attach restrictions or conditions to an authorization for a sub-delegation, including those on the exercise of the power to sub-delegate.

(5)

A delegation does not prevent the Authority from concurrently performing the function delegated. A delegation and sub-delegation does not prevent the Authority or a delegate, or both, from concurrently performing the function delegated or sub-delegated.

(6)

If a person or a committee purports to act under a delegation or sub-delegation, the person or the committee is presumed, unless the contrary is proved, to be acting in accordance with the terms of the delegation or sub-delegation.

(7)

Without affecting subsection (5), if there is a delegation or sub-delegation in relation to a function of the Authority, a reference in this Ordinance or any other Ordinance to the Authority in connection with the performance of the function is, unless the context otherwise requires, to be construed accordingly.

(Added 12 of 2015 s. 13)

4G.

Delegation of certain powers of Authority to Monetary Authority

(1)

The Authority may, subject to the approval of the Chief Executive in Council, delegate its powers under sections 64ZZF(6) and 64ZZH(1) to the Monetary Authority in relation to a business of a regulated activity carried on by an authorized institution.

(2)

The Chief Executive in Council may, after consultation with the Authority and the Monetary Authority—

(a)

impose conditions on the approval of a delegation;

(b)

vary any of the conditions of the approval of a delegation; or

(c)

withdraw the approval of a delegation.

(3)

Without affecting subsection (2)(c), the Authority may, after consultation with the Monetary Authority, revoke a delegation under subsection (1).

(4)

A revocation of a delegation under subsection (3) takes effect when the Chief Executive in Council notifies the Authority and the Monetary Authority that the approval of the delegation has been withdrawn under subsection (2)(c).

(5)

A delegation does not prevent the Authority from concurrently performing the function delegated. A delegation does not prevent the Authority or a delegate, or both, from concurrently performing the function delegated.

(6)

If the Monetary Authority purports to act under a delegation, the Monetary Authority is presumed, unless the contrary is proved, to be acting in accordance with the terms of the delegation.

(7)

If there is a delegation in relation to a power of the Authority, the delegation includes—

(a)

the delegation of a power incidental to, or connected with, the delegation; and

(b)

the delegation of a duty incidental to, or connected with, the delegation.

(8)

Without affecting subsection (5), if the powers under sections 64ZZF(6) and 64ZZH(1) are delegated to the Monetary Authority under subsection (1), the provisions of this Ordinance are to operate as if—

(a)

in the definition of investigator in section 64F, the words “Monetary Authority” were substituted for the word “Authority”;

(b)

in section 64ZZF(7), the words “Monetary Authority” were substituted for the word “Authority”;

(c)

in section 64ZZH(1)(a), (b) and (c), the words “Monetary Authority” were substituted for the word “Authority”;

(d)

in section 64ZZH(1)(d), the words “the Monetary Authority, for considering whether to recommend to the Authority” were substituted for the words “the Authority, for considering whether”;

(e)

in section 64ZZH(1), the words “one or more persons appointed under section 5A(3) of the Exchange Fund Ordinance (Cap. 66)” were substituted for the words “one or more of its employees”;

(f)

in section 64ZZH(4), the words “Monetary Authority” were substituted for the word “Authority”;

(g)

in section 64ZZO(1)(a) and (b), the words “Monetary Authority” were substituted for the word “Authority”;

(h)

in section 64ZZP(7), the words “Monetary Authority” were substituted for the word “Authority”;

(i)

in section 121(2)(a), the words “Monetary Authority” were substituted for the word “Authority”; and

(j)

section 121(5) were omitted and the following substituted—

“(5)

The Monetary Authority may impose any conditions that it considers appropriate on a consent given by it for the purposes of subsection (2)(a).”.

(Added 12 of 2015 s. 13)

4H.

Authority to furnish information

When required by the Financial Secretary, the Authority must furnish to the Financial Secretary—

(a)

the information that the Financial Secretary specifies on the principles, practices and policies the Authority is pursuing or adopting, or proposes to pursue or adopt, in performing any of its functions; and

(b)

the reasons for pursuing or adopting, or proposing to pursue or adopt, those principles, practices and policies.

(Added 12 of 2015 s. 13)

5.

(Repealed 12 of 2015 s. 14)

Division 2

Accounting and Financial Arrangements

(Division 2 added 12 of 2015 s. 15)

5A.

Interpretation of Part IA, Division 2

In this Division—

auditor

(

核數師

) means an auditor appointed under section 5E;

financial year

(

財政年度

) means the financial year of the Authority specified in section 5B.

5B.

Corporate plan and annual estimates

(1)

The financial year of the Authority begins on 1 April in each year.

(2)

However, the first financial year of the Authority is to—

(a)

begin on the commencement date* of section 15 of the Amendment Ordinance; and

(b)

end on the following 31 March.

(3)

The Authority must, no later than 31 December in each financial year, submit to the Financial Secretary for approval a corporate plan for the next financial year.

(4)

A corporate plan for a financial year must specify—

(a)

the objectives of the Authority’s activities for that year;

(b)

the nature and scope of the activities to be undertaken in order to achieve those objectives; and

(c)

the estimates of the Authority’s income and expenditure for that year.

(5)

The Financial Secretary must lay a copy of the estimates specified in the corporate plan as approved under subsection (3) on the table of the Legislative Council.

Editorial Note:

*Commencement date: 7 December 2015.

5C.

Appropriation

For each financial year, the Government must pay to the Authority out of the general revenue the monies appropriated by the Legislative Council for that purpose.

5D.

Accounts and annual report

(1)

The Authority must keep proper accounts and records of its transactions.

(2)

The Authority must, as soon as practicable after the end of each financial year, prepare financial statements—

(a)

that give a true and fair view of—

(i)

the state of affairs of the Authority as at the end of that year; and

(ii)

the results of the operations and cash flows of the Authority in that year; and

(b)

that are signed by the chairperson, and the chief executive officer, of the Authority.

(3)

The Authority must, as soon as practicable after the end of each financial year—

(a)

prepare a report about its activities during that year; and

(b)

send a copy of the report to the Financial Secretary.

(4)

The Financial Secretary must lay a copy of the report on the table of the Legislative Council.

5E.

Auditors

(1)

The Authority must, with the approval of the Financial Secretary, appoint one or more auditors.

(2)

An auditor—

(a)

has a right of access at all reasonable times to the books, accounts, vouchers, records and documents kept by the Authority; and

(b)

is entitled to require from the officers of the Authority the information and explanations that the auditor considers necessary for the discharge of the auditor’s duties.

(3)

The Director of Audit or another public officer authorized by the Director for the purpose may, at any reasonable time—

(a)

examine any books, accounts, vouchers, records or documents kept by the Authority; and

(b)

if the Director or the public officer considers it appropriate, make a copy of the whole of, or any entry in, those books, accounts, vouchers, records or documents.

5F.

Financial statements to be audited

(1)

The Authority must, as soon as practicable after the end of each financial year, provide an auditor for audit with the financial statements prepared for the year under section 5D.

(2)

The auditor must—

(a)

prepare a report on those financial statements; and

(b)

send the report to the Authority.

(3)

The report must include a statement as to whether, in the opinion of the auditor, the financial statements give a true and fair view of—

(a)

the state of affairs of the Authority as at the end of the financial year; and

(b)

the results of the operations and cash flows of the Authority in that year.

(4)

The Authority must, as soon as practicable after receiving the report, provide the Financial Secretary with a copy of the report and of the related financial statements.

(5)

The Financial Secretary must lay a copy of the report and of the related financial statements on the table of the Legislative Council.

5G.

Tax exemption

The Authority is exempt from taxation under the Inland Revenue Ordinance (Cap. 112).

Part II

Authorization

(Format changes—E.R. 4 of 2017)

5H.

Register of authorized insurers

(1)

The Authority must keep a register of authorized insurers, in a form it thinks fit, containing—

(a)

the name of every authorized insurer, its place of incorporation or place of domicile (if different from its place of incorporation) and the year of its first authorization (whether under this Ordinance or an Ordinance repealed or amended by this Ordinance);

(Replaced 14 of 2025 s. 121)

(b)

for each authorized insurer, the class or classes of insurance business authorized to be carried on by that insurer and the conditions imposed under section 8(1)(a) or 8A(1)(a) which restrict class or classes of insurance business authorized to be carried on by that insurer;

(Amended 17 of 2020 s. 5)

(c)

if an authorized insurer ceases to effect contracts of insurance of any description, or a requirement is imposed under section 27 for the cessation of effecting contracts of insurance of a description by that insurer, a note to that effect;

(d)

if a requirement is imposed on an authorized insurer under section 30, or a Manager, provisional liquidator, liquidator or receiver is appointed, a note to that effect;

(e)

if an authorized insurer ceases because of a direction under section 40 to be authorized to carry on insurance business which is part of a class of insurance business, a note to that effect;

(Amended 20 of 2023 s. 5)

(f)

if the authorization of an authorized insurer is suspended under section 41P(2)(b), a note to that effect; and

(Amended 20 of 2023 s. 5)

(g)

any financial information or other particulars of an authorized insurer that the Authority considers appropriate.

(Added 20 of 2023 s. 5)

(2)

A person may, at all reasonable times—

(a)

if the register is kept in a documentary form—inspect the register free of charge; or

(b)

if the register is kept otherwise than in a documentary form—inspect a reproduction in a legible form of any information recorded in the register free of charge.

(3)

A person may, at all reasonable times and on payment of a prescribed fee, obtain—

(a)

a copy of an entry in, or extract of, the register; or

(b)

a copy of the entry or extract, certified by an authorized officer of the Authority as a true copy of the entry or extract.

(4)

In any legal proceedings—

(a)

a document purporting to be a copy of an entry in, or extract of, the register, and purporting to be certified by an authorized officer of the Authority as a true copy of the entry or extract, is admissible in evidence on its production without further proof; and

(b)

unless there is evidence to the contrary, on being admitted in evidence under paragraph (a), the document—

(i)

is presumed to be certified by an authorized officer of the Authority;

(ii)

is presumed to be a true copy of the entry or extract; and

(iii)

is proof of its contents.

(5)

The Authority must, as far as practicable, make the register available to any person for inspection free of charge on the Internet.

(Added 12 of 2015 s. 16)

6.

Restriction on carrying on of insurance business

(1)

No person shall carry on any class of insurance business in or from Hong Kong except—

(a)

a company authorized under section 8 or 8A to carry on that class of insurance business;

(Amended 17 of 2020 s. 6)

(b)

Lloyd’s;

(c)

an association of underwriters approved by the Authority.

(Amended 25 of 1994 s. 3)

(2)

Where an application for approval under subsection (1)(c) is made, the applicant shall furnish such information in respect thereof as the Authority may require.

(Amended 25 of 1994 s. 3)

(3)

A person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction upon indictment to a fine of $2,000,000 and, in the case of an individual, to imprisonment for 2 years; and

(b)

on summary conviction to a fine of $200,000 and, in the case of an individual, to imprisonment for 6 months,

together with, in either case, a fine of $2,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 3)

(Amended 12 of 2015 s. 2)

6A.

Contracts of insurance entered into in contravention of section 6(1)

(1)

Where a contract of insurance in relation to any class of insurance business (not being reinsurance business) is entered into by an insurer in contravention of section 6(1), the contract shall, at the option of the policy holder, be either—

(a)

enforceable against the insurer by the policy holder, and notwithstanding that contravention; or

(b)

void by reason of that contravention.

(2)

A policy holder who in pursuance of subsection (1)(b) opts to void a contract of insurance before the expiration of the contract shall be entitled to recover any consideration paid by him under the contract.

(3)

Where a contract of insurance in relation to any class of insurance business (being reinsurance business) is entered into by an insurer in contravention of section 6(1), the contract shall not be void or voidable by reason only of that contravention.

(4)

This section shall not apply to a contract of insurance entered into before the commencement of the Insurance Companies (Amendment) Ordinance 1990 (44 of 1990).

(Added 44 of 1990 s. 2)

7.

Application for authorization to carry on insurance business

(1)

Any company may make application in writing to the Authority for authorization to carry on any class of insurance business.

(2)

The application must—

(a)

be in the specified form; and

(b)

be accompanied by any information specified by the Authority.

(Replaced 20 of 2023 s. 6)

(Amended 12 of 2015 s. 2 )

8.

Authorization—long term business and general business

(Amended 17 of 2020 s. 7)

(1)

On application made by a company under section 7 for authorization to carry on any class or classes of insurance business specified in Part 2 or 3 of Schedule 1—

(Amended 12 of 2015 s. 2; 17 of 2020 s. 7)

(a)

subject to paragraph (b), the Authority may authorize the company in writing to carry on, subject to such conditions as the Authority may impose, the class or classes of insurance business; or

(Amended 12 of 2015 s. 2; 17 of 2020 s. 7)

(b)

the Authority—

(i)

must refuse the application if subsection (2) or (3) applies; and

(ii)

may refuse the application on any other ground.

(Replaced 17 of 2020 s. 7)

(2)

The Authority shall not authorize a company under this section if it appears to the Authority that any person who is a director or controller of the company is not a fit and proper person to hold the position held by him.

(Amended 12 of 2015 s. 2)

(3)

The Authority must not authorize a company under this section unless the following conditions are satisfied—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 7)

(a)

that the company complies with the capital requirements for the company; and

(Replaced 20 of 2023 s. 7)

(b)

that, having regard to the nature and scale of the company’s proposed operation, the company has adequate capital to enable its continued compliance with the capital requirements for the company after authorization; and

(Replaced 20 of 2023 s. 7)

(c)

that as regards each class of risks against which, in the course of carrying on business, the company proposes to insure persons—

(i)

adequate arrangements are in force, or will be made, for the reinsurance of risks of that class against which persons are, or are to be, insured by the company in the course of carrying on business; or

(ii)

it is justifiable not to make arrangements for that purpose; and

(d)

that the company is, and will continue to be, able to meet its obligations including obligations in respect of business other than the class of insurance business in respect of which the application is made; and

(e)

in the case of a non-Hong Kong company, that it has complied with Part 16 of that Ordinance; and

(Amended 28 of 2012 ss. 912 & 920; 14 of 2025 s. 122)

(f)

that the company will be able to comply with such of the provisions of this Ordinance as would be applicable to it; and

(g)

that in the case of a company which carries on, or proposes to carry on, some other form of business in addition to insurance business, the carrying on of that other form of business in addition to insurance business is not contrary to the interest of existing and potential policy holders; and

(h)

that the name of the company is not likely to deceive.

(4)-(5)

(Repealed 20 of 2023 s. 7)

8A.

Authorization—special purpose business

(1)

On application made by a company under section 7 for authorization to carry on special purpose business—

(a)

subject to paragraph (b), the Authority may authorize the company in writing to carry on, subject to such conditions as the Authority may impose, special purpose business; or

(b)

the Authority—

(i)

must refuse the application if subsection (2) applies; and

(ii)

may refuse the application on any other ground.

(2)

The Authority must not authorize a company under this section unless the following conditions are satisfied—

(a)

the company has appointed 2 or more directors all of whom appear to the Authority to be fit and proper persons to hold the positions;

(b)

the company has appointed an administrator as a controller who appears to the Authority to be a fit and proper person to hold the position;

(c)

the company complies with the relevant financial, solvency, investor’s sophistication and other requirements prescribed by rules made under section 129 or 129A;

(d)

the company intends to carry on special purpose business only but not any other class of insurance business.

(3)

For the purposes of subsection (2)(a) and (b), if the Authority considers that a person is not a fit and proper person to hold the relevant position, the Authority must notify the company in writing of the fact and the reason for that opinion.

(4)

In this section—

administrator

(

管理人

), in relation to a company, means an individual who (alone or jointly with others) is responsible for the administration of the whole business of the company.

(Added 17 of 2020 s. 8)

8B.

Form of information submitted by special purpose insurers

The Authority may specify the form in which a special purpose insurer submits information to the Authority under this Ordinance.

(Added 17 of 2020 s. 8)

8C.

Requirements prescribed by virtue of section 17 may be modified or varied for special purpose insurers

(Amended 20 of 2023 s. 8)

The Authority may modify or vary any requirement prescribed by virtue of section 17 in relation to a special purpose insurer for the period and in the ways as the Authority considers appropriate.

(Added 17 of 2020 s. 8. Amended 20 of 2023 s. 8)

9.

Meaning of

controller

(

控權人

)

(Amended 12 of 2015 s. 19)

(1)

In this Ordinance, except as otherwise defined by section 13A(12), 64F or 80(1),

controller

(

控權人

), in relation to an applicable company—

(Amended 20 of 2023 s. 9)

(a)

means—

(i)

a managing director of the applicable company or of a body corporate of which the applicable company is a subsidiary;

(ii)

a chief executive of the applicable company or of a body corporate, being an insurer, of which the applicable company is a subsidiary; or

(iii)

a person—

(A)

in accordance with whose directions or instructions the directors of the applicable company or of a body corporate of which the applicable company is a subsidiary (or any of them) are accustomed to act; or

(B)

who, alone or with an associate or through a nominee, is entitled to exercise, or control the exercise of, 15% or more of the voting power at a general meeting of the applicable company or of a body corporate of which the applicable company is a subsidiary; but

(b)

does not include a Manager.

(Replaced 12 of 2015 s. 19)

(1A)

In this Ordinance, except as otherwise defined by section 13A(12), 64F or 80(1),

controller

(

控權人

), in relation to a special purpose insurer, means an individual who (alone or jointly with others) is responsible for the administration of the whole business of the special purpose insurer.

(Added 20 of 2023 s. 9)

(2)

Subject to subsection (3), in this section

chief executive

(

行政總裁

), in relation to the applicable company or a body corporate of which the applicable company is a subsidiary, means an employee of the applicable company or that body corporate, who, alone or jointly with others, is responsible under the immediate authority of the directors for the conduct of the whole of the insurance business of the applicable company or that body corporate.

(Amended 12 of 2015 s. 19)

(3)

In relation to an applicable company incorporated outside Hong Kong (other than a designated insurer or re-domiciled insurer)—

(Amended 12 of 2015 s. 19; 20 of 2023 s. 9; 14 of 2025 s. 123)

(a)

the reference in subsection (1)(a)(i) to a managing director of the applicable company includes a reference to a person who is a managing director of the applicable company in respect of so much of its insurance business as is carried on within Hong Kong; and

(Amended 17 of 2020 s. 26)

(b)

the reference in subsection (1)(a)(ii) to a chief executive of the applicable company includes a reference to a person employed by the applicable company who, alone or jointly with others, is responsible (whether or not under the immediate authority of the directors) for the conduct of the whole of the insurance business carried on by the applicable company within Hong Kong, not being a person who—

(Amended 12 of 2015 s. 19; 17 of 2020 s. 26)

(i)

is also responsible for the conduct of insurance business carried on by the applicable company elsewhere; and

(ii)

has a subordinate who is responsible for the whole of the insurance business carried on by the applicable company within Hong Kong.

(Amended 12 of 2015 s. 19)

(4)

In this section

associate

(

相聯者

), in relation to any person, means—

(a)

the wife or husband or minor child of that person;

(b)

any body corporate of which that person is a director;

(c)

any person who is an employee or partner of that person;

(d)

if that person is a body corporate—

(i)

any director of that body corporate;

(ii)

any subsidiary of that body corporate;

(iii)

any director or employee of any such subsidiary,

and for the purposes of this subsection child (子女) includes a step-child.

(Amended 20 of 2023 s. 9)

(5)

(Repealed 20 of 2023 s. 9)

10.

Meaning of

capital requirement

(1)

In relation to an applicable company, a capital requirement is—

(a)

a requirement prescribed by virtue of subsection (2) that applies to the company; or

(b)

if the requirement is varied under subsection (3) or relaxed under section 130(1) for the company—the requirement so varied or relaxed.

(2)

The Authority may, by rules made under section 129—

(a)

prescribe requirements in relation to the capital of an applicable company, including requirements as to the following matters—

(i)

the amount of capital that the company must at least maintain, taking into account the risks associated with the company;

(ii)

the types and amounts of capital resources of the company that are eligible for being counted towards satisfying the amount of capital;

(b)

provide for the determination of the amount of capital required to be maintained, including determination by alternative approaches approved by the Authority; and

(c)

prescribe, or provide for the determination of, the prescribed capital amount and the minimum capital amount for the purposes of this Ordinance.

(3)

The Authority may, by a written notice served on an applicable company, vary a requirement prescribed by virtue of subsection (2) that applies to the company if the Authority is satisfied, on reasonable grounds, that it is prudent to make the variation so that the requirement for the company is commensurate with the risks associated with the company.

(Replaced 20 of 2023 s. 10)

11.

Notification of refusal of authorization under section 8 or 8A

(Amended 12 of 2015 s. 21; 17 of 2020 s. 9)

(1)

Where the Authority refuses to authorize a company under section 8 on the ground (or, if more than one, on grounds which include the ground) that any person as mentioned in subsection (2) of that section is not a fit and proper person to hold the position held by him, the Authority shall notify the company in writing of that fact and the name of the person whose fitness is in question.

(Amended 12 of 2015 s. 2)

(2)

Where notice of a refusal is given to a company under subsection (1), a copy thereof shall at the same time be sent by registered post to the person whose fitness is in question.

(Amended 41 of 1987 s. 3; 12 of 2015 s. 21)

(3)

Where the Authority refuses to authorize a company under section 8(1)(b)(ii) or 8A(1)(b)(ii), the Authority must notify the company in writing of that refusal.

(Added 41 of 1987 s. 3. Amended 12 of 2015 s. 2; 17 of 2020 s. 9)

(4)

(Repealed 12 of 2015 s. 21)

12.

Conditions for authorization under section 8 or 8A

(Replaced 12 of 2015 s. 22. Amended 17 of 2020 s. 10)

(1)

Where any authorization is granted subject to conditions imposed under section 8(1)(a) or 8A(1)(a), the Authority may, by serving a notice in writing on the authorized insurer concerned, amend or revoke a condition or impose a new condition that is reasonable in the circumstances.

(Amended 12 of 2015 s. 22; 17 of 2020 s. 10)

(2)

Any condition referred to in subsection (1) which was in effect immediately before the commencement of the Insurance Companies (Amendment) Ordinance 1988 (34 of 1988) shall continue to have effect until it is revoked under that subsection.

(3)

If a condition referred to in subsection (1) is amended or revoked or a new condition is imposed, the Authority may direct that the register kept under section 5H be amended accordingly.

(Replaced 12 of 2015 s. 22)

(Replaced 34 of 1988 s. 3)

13.

Fee payable upon authorization and annually thereafter

(1)

Every authorized insurer shall pay the prescribed fees to the Authority—

(Amended 12 of 2015 s. 2)

(a)

not later than the date on which it is authorized; and

(b)

annually upon the anniversary of such date.

(Replaced 50 of 1992 s. 2)

(2)

Subsection (1) shall apply to an insurer deemed under section 61(1) of the pre-amended Ordinance having continuing effect by the operation of section 2(7) of Schedule 11 to be authorized under section 8 to carry on insurance business as if—

(Amended 12 of 2015 s. 23)

(a)

paragraph (a) were omitted; and

(b)

in paragraph (b), for “such date” there were substituted “the date on which it was first authorized to carry on insurance business under any Ordinance repealed or amended by this Ordinance”.

(3)

Where it appears to the Authority that an authorized insurer does not intend to effect any contracts of insurance after any anniversary referred to in subsection (1), the Authority may waive the payment of the fee payable by the insurer under that subsection in respect of that and any subsequent anniversary; but any such waiver may be revoked at any time by the Authority by notice in writing to the insurer, with effect from the date of such notice.

(Amended 12 of 2015 s. 2)

13AA.

Compliance with capital requirements and related reporting requirements

(1)

An authorized insurer must ensure that the capital requirements for the insurer are at all times complied with.

(2)

The Authority may, by rules made under section 129(1), prescribe requirements for an authorized insurer to report to the Authority any information relevant to the compliance with the capital requirements for the insurer (including requirements as to how and when such a report must be made).

(3)

An authorized insurer must comply with a requirement prescribed by virtue of subsection (2) that applies to the insurer.

(4)

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction on indictment—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence—to a further fine of $5,000 for each day during which the offence continues.

(Added 20 of 2023 s. 11)

13A.

Approval of certain controllers of authorized insurers

(1)

An authorized insurer must not appoint an individual as a controller of the insurer unless the Authority has approved the appointment under subsection (2).

Note—

See also section 95ZD if the authorized insurer is also a designated insurance holding company.

(Added 18 of 2020 s. 4)

(2)

The Authority may approve the appointment of the individual as a controller of the authorized insurer—

(a)

on an application made by the insurer; and

(Amended 20 of 2023 s. 12)

(b)

on payment of a prescribed fee.

(3)

An application made under subsection (2)(a) must—

(a)

be in the specified form;

(b)

be accompanied by any information specified by the Authority; and

(c)

be served on the Authority.

(Replaced 20 of 2023 s. 12)

(4)

The Authority must not approve the appointment of an individual as a controller of the authorized insurer unless it is satisfied that the individual is a fit and proper person to be so appointed.

(5)

After deciding on the application, the Authority must give the authorized insurer and the individual a notice in writing of the result of the application.

(Amended 20 of 2023 s. 12)

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

(6A)

If an individual is a managing director or chief executive of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

(a)

the individual is taken to be appointed as a controller of the designated insurer on the date of designation; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on the date of designation.

(Added 20 of 2023 s. 12)

(6B)

If the Authority withdraws the designation of a designated insurer under section 3B(2), and an individual is a controller of the designated insurer immediately before the withdrawal takes effect—

(a)

the individual is taken to be appointed as a controller of the insurer (being a non-HK insurer other than a designated insurer) on the date on which the withdrawal takes effect; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on the date on which the withdrawal takes effect.

(Added 20 of 2023 s. 12)

(6C)

If an individual is a managing director or chief executive of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

(a)

the individual is taken to be appointed as a controller of the re-domiciled insurer on that date; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on that date.

(Added 14 of 2025 s. 124)

(7)

Subject to subsection (9), the Authority may, by serving a notice in writing on an authorized insurer and an individual, revoke the approval of the appointment of the individual as a controller of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A), (6B) or (6C)) if it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be so appointed.

(Amended 20 of 2023 s. 12; 14 of 2025 s. 124)

(8)

The authorized insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the individual as a controller of the insurer.

(9)

Before serving the notice under subsection (7), the Authority must serve on the authorized insurer and the individual a preliminary written notice stating—

(a)

that the Authority is considering the service on the insurer of a notice under that subsection because it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be appointed as a controller of the insurer; and

(b)

that the insurer or the individual may, within 1 month after the date of service of the preliminary notice—

(i)

make written representations to the Authority; and

(ii)

if the insurer or the individual so requests, make oral representations to a person appointed for the purpose by the Authority.

(10)

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

(11)

An authorized insurer which contravenes subsection (1) or (8) commits an offence and is liable—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(12)

In this section—

administrator

(

管理人

), in relation to a special purpose insurer, means an individual who (alone or jointly with others) is responsible for the administration of the whole business of the special purpose insurer;

(Added 17 of 2020 s. 11)

controller

(

控權人

)—

(a)

means—

(i)

in relation to an HK insurer (other than a special purpose insurer) or a designated insurer—an individual who is a managing director or chief executive of the insurer;

(Amended 17 of 2020 s. 11)

(ii)

in relation to a non-HK insurer (other than a special purpose insurer or a designated insurer)—an individual who is—

(Amended 17 of 2020 s. 11; 20 of 2023 s. 12)

(A)

a managing director of the insurer in respect of so much of its insurance business as is carried on within Hong Kong; or

(B)

a chief executive of the insurer who, alone or jointly with others, is responsible (whether or not under the immediate authority of the directors) for the conduct of the whole of the insurance business carried on by the insurer within Hong Kong, not being an individual who—

(I)

is also responsible for the conduct of insurance business carried on by the insurer elsewhere; and

(II)

has a subordinate who is responsible for the whole of the insurance business carried on by the insurer within Hong Kong; or

(Amended 17 of 2020 s. 11)

(iii)

in relation to an HK insurer or non-HK insurer that is a special purpose insurer—an administrator of the HK insurer or non-HK insurer; but

(Added 17 of 2020 s. 11. Amended 20 of 2023 s. 12)

(b)

does not include a Manager.

(Replaced 12 of 2015 s. 24)

13AB.

Restrictions on acting as controllers of authorized insurers in contravention of section 13A

(1)

An individual appointed as a controller of an authorized insurer in contravention of section 13A(1) must not act or continue to act as such a controller.

(2)

An individual appointed as a controller of an authorized insurer must not continue to act as such a controller after the date specified in the notice served on the individual under section 13A(7).

(3)

An individual who contravenes subsection (1) or (2) commits an offence and is liable—

(a)

to a fine of $200,000 and to imprisonment for 2 years; and

(b)

in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(Added 12 of 2015 s. 25)

13AC.

Approval of directors of HK insurers or designated insurers

(Amended 20 of 2023 s. 13)

(1)

An HK insurer or designated insurer must not appoint a person as a director of the insurer unless the Authority has approved the appointment under subsection (2).

Note—

See also section 95ZD if the HK insurer or designated insurer is also a designated insurance holding company.

(Added 18 of 2020 s. 5)

(2)

The Authority may approve the appointment of the person as a director of the HK insurer or designated insurer—

(Amended 20 of 2023 s. 13)

(a)

on an application made by the insurer; and

(b)

on payment of a prescribed fee.

(3)

An application made under subsection (2)(a) must—

(a)

be in the specified form;

(b)

be accompanied by any information specified by the Authority; and

(c)

be served on the Authority.

(Replaced 20 of 2023 s. 13)

(4)

The Authority must not approve the appointment of a person as a director of the HK insurer or designated insurer unless it is satisfied that the person is a fit and proper person to be so appointed.

(5)

After deciding on the application, the Authority must give the HK insurer or designated insurer and the person a notice in writing of the result of the application.

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

(6A)

If a person is a director of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

(a)

the person continues to be the insurer’s director; and

(b)

the appointment of the person as such a director is taken to be approved under subsection (2) on the date of designation.

(Added 20 of 2023 s. 13)

(6B)

If a person is a director of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

(a)

the person is taken to be appointed as a director of the re-domiciled insurer on that date; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on that date.

(Added 14 of 2025 s. 125)

(7)

Subject to subsection (9), the Authority may, by serving a notice in writing on an HK insurer or designated insurer and a person, revoke the approval of the appointment of the person as a director of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A) or (6B)) if it appears to the Authority that the person is not, or is no longer, a fit and proper person to be so appointed.

(Amended 14 of 2025 s. 125)

(8)

The HK insurer or designated insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the person as a director of the insurer.

(9)

Before serving the notice under subsection (7), the Authority must serve on the HK insurer or designated insurer and the person a preliminary written notice stating—

(Amended 20 of 2023 s. 13)

(a)

that the Authority is considering the service on the insurer of a notice under that subsection because it appears to the Authority that the person is not, or is no longer, a fit and proper person to be appointed as a director of the insurer; and

(b)

that the insurer or the person may, within 1 month after the date of service of the preliminary notice—

(i)

make written representations to the Authority; and

(ii)

if the insurer or the person so requests, make oral representations to a person appointed for the purpose by the Authority.

(10)

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

(11)

An HK insurer or designated insurer which contravenes subsection (1) or (8) commits an offence and is liable—

(Amended 20 of 2023 s. 13)

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(Added 12 of 2015 s. 26. Amended 20 of 2023 s. 13)

13AD.

Restrictions on acting as directors of authorized insurers in contravention of section 13AC

(1)

A person appointed as a director of an authorized insurer in contravention of section 13AC(1) must not act or continue to act as such a director.

(2)

A person appointed as a director of an authorized insurer must not continue to act as such a director after the date specified in the notice served on the person under section 13AC(7).

(3)

A person who contravenes subsection (1) or (2) commits an offence and is liable—

(a)

to a fine of $200,000 and, in the case of an individual, also to imprisonment for 2 years; and

(b)

in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(Added 12 of 2015 s. 26)

13AE.

Approval of key persons in control functions of certain authorized insurers

(1A)

This section does not apply to a special purpose insurer.

(Added 17 of 2020 s. 12)

(1)

An authorized insurer which is not a captive insurer must not appoint an individual as a key person in control functions of the insurer unless the Authority has approved the appointment under subsection (2).

Note—

See also section 95ZD if the authorized insurer is also a designated insurance holding company.

(Added 18 of 2020 s. 6)

(2)

The Authority may approve the appointment of the individual as a key person in control functions of the authorized insurer—

(a)

on an application made by the insurer; and

(Amended 20 of 2023 s. 14)

(b)

on payment of a prescribed fee.

(3)

An application made under subsection (2)(a) must—

(a)

be in the specified form;

(b)

be accompanied by any information specified by the Authority; and

(c)

be served on the Authority.

(Replaced 20 of 2023 s. 14)

(4)

The Authority must not approve the appointment of an individual as a key person in control functions of the authorized insurer unless it is satisfied that the individual is a fit and proper person to be so appointed.

(5)

After deciding on the application, the Authority must give the authorized insurer and the individual a notice in writing of the result of the application.

(Amended 20 of 2023 s. 14)

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

(6A)

If an individual is a key person in control functions of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1)—

(a)

the individual is taken to be appointed as a key person in control functions of the designated insurer on the date of designation; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on the date of designation.

(Added 20 of 2023 s. 14)

(6B)

If the Authority withdraws the designation of a designated insurer under section 3B(2), and an individual is a key person in control functions of the designated insurer immediately before the withdrawal takes effect—

(a)

the individual is taken to be appointed as a key person in control functions of the insurer (being a non-HK insurer other than a designated insurer) on the date on which the withdrawal takes effect; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on the date on which the withdrawal takes effect.

(Added 20 of 2023 s. 14)

(6C)

If an individual is a key person in control functions of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1)—

(a)

the individual is taken to be appointed as a key person in control function of the re-domiciled insurer on that date; and

(b)

the appointment under paragraph (a) is taken to be approved under subsection (2) on that date.

(Added 14 of 2025 s. 126)

(7)

Subject to subsection (9), the Authority may, by serving a notice in writing on an authorized insurer and an individual, revoke the approval of the appointment of the individual as a key person in control functions of the insurer (given under subsection (2) or taken to be given by virtue of subsection (6A), (6B) or (6C)) if it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be so appointed.

(Amended 20 of 2023 s. 14; 14 of 2025 s. 126)

(8)

The authorized insurer must, by the date specified in the notice under subsection (7), terminate the appointment of the individual as a key person in control functions of the insurer.

(9)

Before serving the notice under subsection (7), the Authority must serve on the authorized insurer and the individual a preliminary written notice stating—

(a)

that the Authority is considering the service on the insurer of a notice under that subsection because it appears to the Authority that the individual is not, or is no longer, a fit and proper person to be appointed as a key person in control functions of the insurer; and

(b)

that the insurer or the individual may, within 1 month after the date of service of the preliminary notice—

(i)

make written representations to the Authority; and

(ii)

if the insurer or the individual so requests, make oral representations to a person appointed for the purpose by the Authority.

(10)

If representations are made under subsection (9), the Authority must take them into consideration before serving a notice under subsection (7).

(11)

An authorized insurer which contravenes subsection (1) or (8) commits an offence and is liable—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(12)

In this section—

control function

(

管控職能

), in relation to an authorized insurer, means any of the following functions that is likely to enable the individual responsible for the performance of the function to exercise a significant influence on the business carried on by the insurer—

(a)

risk management function, which is a function to establish the strategies, policies and procedures to manage different types of key risks of the insurer;

(b)

financial control function, which is a function to oversee all financial matters (including investments, accounting and financial reporting) of the insurer;

(c)

compliance function, which is a function to establish and formulate the standards, policies and procedures to ensure the compliance with legal and regulatory requirements that are applicable to the insurer;

(d)

internal audit function, which is a function to establish and implement an audit plan to examine and evaluate the adequacy and effectiveness of the controls to manage risks of the insurer;

(e)

actuarial function, which is a function to evaluate and monitor—

(i)

the technical provisions, premium and pricing strategies of the insurer;

(ii)

the reserving and investment policies and reinsurance arrangements of the insurer; and

(iii)

the policies and controls in respect of the insurer’s vulnerability to fluctuations in risk exposures and distribution policies;

(f)

intermediary management function, which, for an authorized insurer that enters into contracts of insurance through licensed insurance intermediaries or accepts referral of insurance business from licensed insurance intermediaries, is a function to establish and maintain internal control measures for—

(i)

administering the licensed insurance agencies and licensed individual insurance agents appointed by the insurer in relation to the regulated activities carried on by them;

(ii)

monitoring the compliance with this Ordinance by the licensed insurance agencies and licensed individual insurance agents appointed by the insurer; and

(iii)

ensuring that the arrangements by the licensed insurance intermediaries for the insurance business referred to the insurer comply with—

(A)

the requirements of this Ordinance; and

(B)

the requirements imposed by the Authority in any code or guideline published under section 95 or 133;

(g)

any other function specified in a notice under subsection (14);

key person in control functions

(

管控要員

)—

(a)

in relation to an HK insurer or designated insurer—means an individual responsible for the performance of one or more of the control functions for the insurer; or

(b)

in relation to a non-HK insurer (other than a designated insurer)—means an individual responsible for the performance of one or more of the control functions for the insurer in respect of so much of its insurance business as is carried on within Hong Kong.

(Amended 20 of 2023 s. 14)

(13)

For the purposes of the definition of

key person in control functions

in subsection (12), it does not matter whether the individual is solely responsible, or is jointly responsible with other key persons in control functions of the authorized insurer, for the performance of the relevant functions.

(14)

Subject to subsection (15), the Financial Secretary may, by notice published in the Gazette, specify a function to be a control function under subsection (12).

(15)

The Financial Secretary must not specify a function to be a control function unless the Financial Secretary is satisfied that the function is likely to enable the individual responsible for the performance of the function to exercise a significant influence on the business carried on by an authorized insurer.

(Added 12 of 2015 s. 26)

13AF.

Conditions on approval given under sections 13A, 13AC, 13AE and 13B

(Amended 20 of 2023 s. 15)

(1)

This section applies if the Authority approves the appointment of—

(a)

an individual as a controller of an authorized insurer under section 13A;

(b)

a person as a director of an authorized insurer under section 13AC;

(c)

an individual as a key person in control functions of an authorized insurer under section 13AE; or

(Amended 20 of 2023 s. 15)

(d)

a person as a shareholder controller of an authorized insurer under section 13B.

(Added 20 of 2023 s. 15)

(1A)

For subsection (1)(a), it does not matter whether the approval is—

(a)

given on an application made under section 13A(2)(a); or

(b)

taken to be given by virtue of section 13A(6A), (6B) or (6C).

(Added 20 of 2023 s. 15. Amended 14 of 2025 s. 127)

(1B)

For subsection (1)(b), it does not matter whether the approval is—

(a)

given on an application made under section 13AC(2)(a); or

(b)

taken to be given by virtue of section 13AC(6A) or (6B).

(Added 20 of 2023 s. 15. Amended 14 of 2025 s. 127)

(1C)

For subsection (1)(c), it does not matter whether the approval is—

(a)

given on an application made under section 13AE(2)(a); or

(b)

taken to be given by virtue of section 13AE(6A), (6B) or (6C).

(Added 20 of 2023 s. 15. Amended 14 of 2025 s. 127)

(1D)

For subsection (1)(d), it does not matter whether the approval is—

(a)

given on an application made under section 13B(2B)(a); or

(b)

taken to be given by virtue of—

(i)

section 13B(5) or (5A), 13BB(3), 95ZB(2) or 95ZC(3); or

(Amended 14 of 2025 s. 127)

(ii)

Part 1 of Schedule 12.

(Added 20 of 2023 s. 15)

(2)

The Authority may impose any conditions that it considers appropriate on the approval when the approval is given.

(Amended 20 of 2023 s. 15)

(3)

The Authority may also impose any conditions that it considers appropriate on the approval after the approval is given or taken to be given.

(Amended 20 of 2023 s. 15)

(4)

The Authority may amend or revoke any conditions imposed under subsection (2) or (3).

(5)

The power under subsection (2), (3) or (4) is only exercisable by notice in writing served on the authorized insurer and the individual or person.

(6)

A notice under subsection (5) must, in the case of any conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions.

(7)

An imposition, amendment or revocation of any conditions under subsection (2), (3) or (4) takes effect at the time the notice under subsection (5) is served on the authorized insurer and the individual or person or at the time specified in the notice, whichever is the later.

(Added 12 of 2015 s. 26)

13AG.

Procedural requirements for rejecting application, or imposing or amending conditions

(1)

The Authority must not—

(a)

reject an application made under section 13A(2) for the approval of the appointment of an individual as a controller of an authorized insurer;

(b)

impose a condition under section 13AF(2) or (3) on such an approval; or

(c)

amend such a condition under section 13AF(4),

without giving the insurer and the individual an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(2)

The Authority must not—

(a)

reject an application made under section 13AC(2) for the approval of the appointment of a person as a director of an authorized insurer;

(b)

impose a condition under section 13AF(2) or (3) on such an approval; or

(c)

amend such a condition under section 13AF(4),

without giving the insurer and the person an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(3)

The Authority must not—

(a)

reject an application made under section 13AE(2) for the approval of the appointment of an individual as a key person in control functions of an authorized insurer;

(b)

impose a condition under section 13AF(2) or (3) on such an approval; or

(c)

amend such a condition under section 13AF(4),

without giving the insurer and the individual an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(3A)

The Authority must not—

(a)

impose a condition under section 13AF(2) or (3) on the approval of the appointment of a person as a shareholder controller of an authorized insurer; or

(b)

amend such a condition under section 13AF(4),

without giving the insurer and the person an opportunity to make representations as to why the condition should not be imposed or amended.

(Added 20 of 2023 s. 16)

(4)

In this section, a reference to an opportunity to make representations is a reference to an opportunity to make written representations or oral representations.

(Added 12 of 2015 s. 26)

13AH.

Offence to provide false information in connection with application for approval

(1)

A person commits an offence if the person, in connection with an application for the approval under section 13A, 13AC, 13AE or 13B—

(Amended 20 of 2023 s. 17)

(a)

makes a statement that is false or misleading in a material particular; and

(b)

knows that, or is reckless as to whether, the statement is false or misleading in the material particular.

(2)

A person commits an offence if the person, in connection with an application for the approval under section 13A, 13AC, 13AE or 13B—

(Amended 20 of 2023 s. 17)

(a)

omits a material particular from a statement with the result that the statement is rendered false or misleading; and

(b)

knows that, or is reckless as to whether, the material particular is omitted from the statement.

(3)

A person who commits an offence under subsection (1) or (2) is liable to a fine at level 5 and to imprisonment for 6 months.

(Added 12 of 2015 s. 26)

13B.

Approval of persons proposing to become shareholder controllers of certain HK insurers or designated insurers

(Amended 20 of 2023 s. 18)

(1A)

(Repealed 20 of 2023 s. 18)

(1)

This section applies to an authorized insurer that—

(a)

is an HK insurer or designated insurer; and

(b)

is not a special purpose insurer.

(Replaced 20 of 2023 s. 18)

(2)

A person must not become a minority shareholder controller of an authorized insurer unless—

(a)

the Authority approves under subsection (2B) the person to be such a minority shareholder controller; or

(b)

the person is a majority shareholder controller of the insurer immediately before becoming such a minority shareholder controller.

Note—

See also section 95ZB if the authorized insurer is also a designated insurance holding company or a member of the supervised group of such a company.

(Replaced 20 of 2023 s. 18)

(2A)

A person must not become a majority shareholder controller of an authorized insurer unless the Authority approves under subsection (2B) the person to be such a majority shareholder controller, regardless of whether the person is a minority shareholder controller of the insurer before becoming such a majority shareholder controller.

Note—

See also section 95ZB if the authorized insurer is also a designated insurance holding company or a member of the supervised group of such a company.

(Added 20 of 2023 s. 18)

(2B)

The Authority may approve a person to be a minority shareholder controller or a majority shareholder controller of an authorized insurer—

(a)

on an application made by the person or the insurer; and

(b)

on payment of a prescribed fee.

(Added 20 of 2023 s. 18)

(2C)

An application made under subsection (2B)(a) must—

(a)

be in the specified form;

(b)

be accompanied by any information specified by the Authority; and

(c)

be served on the Authority.

(Added 20 of 2023 s. 18)

(2D)

The Authority must reject an application made under subsection (2B)(a) for the approval of a person to be a minority shareholder controller or a majority shareholder controller of an authorized insurer unless it is satisfied that the person is a fit and proper person to be such a shareholder controller.

(Added 20 of 2023 s. 18)

(2E)

If the Authority intends to reject the application, the Authority must serve on the person and the authorized insurer a written notice stating—

(a)

that the Authority is considering rejecting the application;

(b)

the reasons why the Authority is considering doing so; and

(c)

the effect of subsection (2F).

(Added 20 of 2023 s. 18)

(2F)

The person or the authorized insurer may, within 1 month after the date of service of the notice under subsection (2E)—

(a)

make written representations to the Authority; and

(b)

if the person or the insurer so requests, make oral representations to a person appointed for the purpose by the Authority.

(Added 20 of 2023 s. 18)

(2G)

If representations are made under subsection (2F), the Authority must take them into account before rejecting the application.

(Added 20 of 2023 s. 18)

(2H)

After deciding on the application, the Authority must give the person and the authorized insurer a written notice of the result of the application.

(Added 20 of 2023 s. 18)

(2I)

If the application is rejected, the notice must state the reasons for the rejection.

(Added 20 of 2023 s. 18)

(3)

Where a person—

(a)

becomes a minority shareholder controller or a majority shareholder controller of an authorized insurer in contravention of subsection (2) or (2A);

(Amended 12 of 2015 s. 27)

(b)

did not know that the acts or circumstances as a result of which the person became such a shareholder controller were such as to have that effect; and

(c)

subsequently becomes aware of the fact that the person has become such a shareholder controller,

the person must, within 14 days after becoming aware of that fact, take the actions specified in subsection (4).

(Amended 12 of 2015 ss. 2 & 27; 20 of 2023 s. 18)

Note—

See also section 95ZC if the authorized insurer is also a designated insurance holding company or a member of the supervised group of such a company.

(Added 18 of 2020 s. 7)

(4)

The actions specified for the purposes of subsection (3) are—

(a)

to serve on the Authority a written notice stating that the person has become such a shareholder controller;

(b)

to make an application under subsection (2B)(a) for an approval to be such a shareholder controller; and

(c)

to pay the prescribed fee under subsection (2B)(b).

(Replaced 20 of 2023 s. 18)

(5)

If a person is a minority shareholder controller or a majority shareholder controller of a non-HK insurer immediately before the insurer is designated as a designated insurer under section 3B(1), the person is taken to be approved under subsection (2B) as such a shareholder controller on the date of designation.

(Replaced 20 of 2023 s. 18)

(5A)

If a person is a minority shareholder controller or a majority shareholder controller of a non-HK insurer immediately before the date on which the non-HK insurer becomes a re-domiciled insurer under section 3BA(1), the person is taken to be approved under subsection (2B) as such a shareholder controller of the re-domiciled insurer on that date.

(Added 14 of 2025 s. 128)

(6)

(Repealed 20 of 2023 s. 18)

(7)

(Repealed 12 of 2015 s. 27)

(8)

No transaction relating to the acquisition of voting power in an authorized insurer is void or voidable by reason only of a contravention of subsection (2) or (2A).

(Amended 12 of 2015 s. 27; 20 of 2023 s. 18)

(9)

Subject to subsection (10), any person who fails to comply with subsection (2) or (2A) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years.

(Amended 35 of 1996 s. 7; 20 of 2023 s. 18)

(10)

Where a person is charged with an offence under subsection (9), it is a defence to prove that the person did not know that the acts or circumstances as a result of which the person became a minority shareholder controller or a majority shareholder controller (as the case may be) of the insurer concerned were such as to have that effect.

(Amended 20 of 2023 s. 18)

(11)

Any person who fails to comply with subsection (3) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 7)

(Added 44 of 1990 s. 3)

13BA.

Objection to being shareholder controllers

(1)

This section applies in relation to a person approved under section 13B to be a shareholder controller of an authorized insurer that—

(a)

is an HK insurer or designated insurer; and

(b)

is not a special purpose insurer.

(2)

For subsection (1), it does not matter whether the approval is—

(a)

given on an application made under section 13B(2B)(a); or

(b)

taken to be given by virtue of—

(i)

section 13B(5) or (5A), 13BB(3), 95ZB(2) or 95ZC(3); or

(Amended 14 of 2025 s. 129)

(ii)

Part 1 of Schedule 12.

(3)

If it appears to the Authority that a person who is a minority shareholder controller of an authorized insurer is not, or is no longer, a fit and proper person to be such a minority shareholder controller, the Authority may, by a written notice served on the person, object to the person being such a minority shareholder controller.

(4)

If it appears to the Authority that a person who is a majority shareholder controller of an authorized insurer is not, or is no longer, a fit and proper person to be such a majority shareholder controller, the Authority, by a written notice served on the person—

(a)

may object to the person being a majority shareholder controller of the insurer; or

(b)

(if it also appears to the Authority that the person is not, or is no longer, a fit and proper person to be a minority shareholder controller of the insurer) may object to the person being any shareholder controller of the insurer.

(5)

A notice under subsection (3) or (4) (notice of objection) must state the grounds for the objection.

(6)

Before serving a notice of objection on a person, the Authority must serve on the person a written notice stating—

(a)

that the Authority is considering serving the notice of objection;

(b)

the reasons why the Authority is considering doing so; and

(c)

the effect of subsection (7).

(7)

The person may, within the period specified in the notice under subsection (6)—

(a)

make written representations to the Authority; and

(b)

if the person so requests, make oral representations to a person appointed for the purpose by the Authority.

(8)

If representations are made under subsection (7), the Authority must take them into account before serving the notice of objection.

(9)

The Authority may, by a written notice served on a person, revoke a notice of objection served on the person if it appears to the Authority that the grounds for the objection no longer exist.

(Added 20 of 2023 s. 19)

13BB.

Majority shareholder controller becoming minority shareholder controller

(1)

If a person, on ceasing to be a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer), becomes a minority shareholder controller of the insurer, the person must, within 1 month after becoming such a minority shareholder controller, notify the Authority in the specified form.

(2)

If the person—

(a)

fails to comply with subsection (1);

(b)

did not know that the acts or circumstances as a result of which the person became a minority shareholder controller of the insurer were such as to have that effect; and

(c)

subsequently becomes aware of the fact that the person has become a minority shareholder controller of the insurer,

the person must serve on the Authority, within 1 month after becoming aware of that fact, a written notice stating that the person has become such a minority shareholder controller and containing the information specified by the Authority.

(3)

A person who complies with subsection (1) or (2) is taken to be approved to be a minority shareholder controller of the insurer under section 13B(2B).

(4)

A person who fails to comply with subsection (1) commits an offence and is liable on conviction—

(a)

to a fine at level 4; and

(b)

in the case of a continuing offence—to a further fine of $1,000 for each day during which the offence continues.

(5)

If a person is charged with an offence under subsection (4), it is a defence for the person to establish that the person took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.

(6)

A person who fails to comply with subsection (2) commits an offence and is liable on conviction—

(a)

to a fine at level 4; and

(b)

in the case of a continuing offence—to a further fine of $1,000 for each day during which the offence continues.

(7)

A person is taken to have established a matter that needs to be established for a defence under subsection (5) if—

(a)

there is sufficient evidence to raise an issue with respect to that matter; and

(b)

the contrary is not proved by the prosecution beyond reasonable doubt.

(Added 20 of 2023 s. 19)

13C.

Restrictions on and sale of shares

(Amended 20 of 2023 s. 20)

(1)

The Authority may exercise a power conferred by this section in relation to a person if the person—

(a)

has become a minority shareholder controller or a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer); and

(b)

is not approved, or taken to be approved, under section 13B to be such a shareholder controller.

(Replaced 20 of 2023 s. 20)

(1A)

Subject to subsection (1B), the Authority may also exercise a power conferred by this section in relation to a minority shareholder controller or a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer) if—

(a)

the Authority has served a notice of objection under section 13BA(3) or (4) (as the case may be) on the shareholder controller; and

(b)

the objection has taken effect under section 116.

(Added 20 of 2023 s. 20)

(1B)

Subsection (1A) does not empower the Authority to make an application referred to in subsection (5) except if the application is made in relation to a minority shareholder controller or a majority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer) who—

(a)

is taken to be approved to be such a shareholder controller under section 13B(2B) by virtue of section 2 of Schedule 12; and

(b)

is not a person in relation to whom the conditions under section 13B(2)(a), (ab) and (b) as in force immediately before the commencement date* of section 18 of the Insurance (Amendment) Ordinance 2023 (20 of 2023) have been satisfied.

(Added 20 of 2023 s. 20)

(2)

Subject to subsection (6), the Authority may by notice in writing served on the person concerned direct that any specified shares to which this section applies shall, until further notice, be subject to one or more of the following restrictions—

(Amended 12 of 2015 s. 2)

(a)

any transfer of those shares or, in the case of unissued shares, any transfer of the right to be issued with them, and any issue of such shares, shall be void;

(b)

no voting rights shall be exercisable in respect of the shares;

(c)

no further shares shall be issued in right of them or in pursuance of any offer made to their holder;

(d)

except in a liquidation, no payment shall be made of any sums due from the insurer on the shares, whether in respect of capital or otherwise.

(3)

Where shares are subject to the restrictions under subsection (2)(a), any agreement to transfer the shares or, in the case of unissued shares, the right to be issued with them, shall be void.

(4)

Where shares are subject to the restrictions under subsection (2)(c) or (d), an agreement to transfer any right to be issued with other shares in right of those shares, or to receive any payment on them (otherwise than in a liquidation) shall be void.

(5)

Subject to subsection (7), the Court of First Instance may, on the application of the Authority, order the sale of any specified shares to which this section applies and, if they are for the time being subject to any restrictions under subsection (2), that they shall cease to be subject to those restrictions.

(Amended 25 of 1998 s. 2; 12 of 2015 s. 2)

(6)

The Authority must, by a written notice served on a person, revoke a notice served under subsection (2) on the person if—

(a)

in the case of subsection (1)—the person is approved, or taken to be approved, under section 13B to be the minority shareholder controller or majority shareholder controller (as the case may be) of the insurer; or

(b)

in the case of subsection (1A)—

(i)

the notice of objection is revoked under section 13BA(9); or

(ii)

the Tribunal has set aside under section 101 the Authority’s decision to serve the notice of objection.

(Replaced 20 of 2023 s. 20)

(7)

Subject to subsection (7A), the Authority may not, by virtue of subsection (1), make an application referred to in subsection (5) against a person falling within the descriptions in section 13B(3)(a), (b) and (c) unless—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 20)

(a)

the application relates to shares which are the subject of a notice in writing under subsection (2); and

(b)

the person upon whom that notice has been served has not, within 14 days after the service of that notice, taken the actions specified in section 13B(4).

(Amended 12 of 2015 s. 2; 20 of 2023 s. 20)

(7A)

Subsection (7) does not prevent the Authority from making, by virtue of subsection (1), an application referred to in subsection (5) in respect of the shares that are the subject of a notice under subsection (2) against a person falling within the descriptions in section 13B(3)(a), (b) and (c) if—

(a)

the person has, within 14 days after the service of that notice, taken the actions specified in section 13B(4);

(b)

the Authority has rejected the person’s application for an approval to be a shareholder controller of the authorized insurer under section 13B(2H); and

(c)

the rejection has taken effect under section 116.

(Added 20 of 2023 s. 20)

(8)

Where an order has been made under subsection (5) the Court of First Instance may, on the application of the Authority, make such further order relating to the sale or transfer of the shares as it thinks fit.

(Amended 25 of 1998 s. 2; 12 of 2015 s. 2)

(9)

Where shares are sold in pursuance of an order under this section the proceeds of the sale, less the costs of the sale, shall be paid into court for the benefit of the persons beneficially interested in them, and any such person may apply to the Court of First Instance for an order that the whole or part of the proceeds to be paid to him.

(Amended 25 of 1998 s. 2)

(10)

This section applies to—

(Amended 12 of 2015 s. 28; 20 of 2023 s. 20)

(a)

in relation to a person who has become a minority shareholder controller of an HK insurer or designated insurer (other than a special purpose insurer) in contravention of section 13B(2) or who has been served with a notice of objection under section 13BA(3) that objects to the person being such a shareholder controller—all the shares by virtue of which the person is, whether alone or with an associate (as defined by section 9(4)) or through a nominee, entitled to exercise, or control the exercise of, the voting power at a general meeting of the insurer as such a minority shareholder controller (excluding any such shares held by that person, or any such associate or nominee, before that person became such a minority shareholder controller);

(b)

in relation to a person who has become a majority shareholder controller of the insurer in contravention of section 13B(2A) or who has been served with a notice of objection under section 13BA(4)(a) that objects to the person being such a shareholder controller—all the shares by virtue of which the person is, whether alone or with an associate (as defined by section 9(4)) or through a nominee, entitled to exercise, or control the exercise of, the voting power at a general meeting of the insurer as such a majority shareholder controller (excluding any such shares held by that person, or any such associate or nominee, before that person became such a majority shareholder controller); or

(c)

in relation to a person who has been served with a notice of objection under section 13BA(4)(b) that objects to the person being any shareholder controller of the insurer—all the shares by virtue of which the person is, whether alone or with an associate (as defined by section 9(4)) or through a nominee, entitled to exercise, or control the exercise of, the voting power at a general meeting of the insurer as a shareholder controller of the insurer (excluding any such shares held by that person, or any such associate or nominee, before that person became a shareholder controller of the insurer).

(Amended 20 of 2023 s. 20)

(11)

A copy of a notice in writing served under subsection (2) or (6) on the person concerned shall be served on the insurer to whose shares it relates and, if it relates to shares held by an associate within the meaning of section 9(4), or a nominee, of that person, on that associate or nominee, as the case may be.

(Added 44 of 1990 s. 3)

Editorial Note:

* Commencement date: 1 July 2024.

13D.

Punishment for attempted evasion of restrictions

(1)

A person commits an offence and is liable to a fine at level 4 and to imprisonment for 6 months if he—

(a)

exercises or purports to exercise any right to dispose of any shares which, to his knowledge, are for the time being subject to any restrictions under section 13C(2) or of any right to be issued with any such shares;

(b)

votes in respect of any such shares (whether as holder or proxy), or appoints a proxy to vote in respect of them;

(c)

being the holder of any such shares, fails to notify of their being subject to those restrictions any person whom he does not know to be aware of that fact but does know to be entitled (apart from the restrictions) to vote in respect of those shares whether as holder or as proxy; or

(d)

being the holder of any such shares, or being entitled to any right to be issued with other shares in right of them, or to receive any payment on them (otherwise than in a liquidation), enters into any agreement which is void under section 13C(3) or (4).

(2)

Where shares in an authorized insurer are issued in contravention of restrictions under section 13C(2), or payments are made by an authorized insurer in contravention of such restrictions, the insurer commits an offence and is liable to a fine at level 4 and, in the case of an individual who commits the like offence by virtue of section 124, to imprisonment for 6 months.

(Amended 12 of 2015 ss. 2 & 29)

(Added 44 of 1990 s. 3. Amended 35 of 1996 s. 9)

14.

Notification of change in particulars, and Authority’s objection to appointment

(Amended 12 of 2015 s. 30)

(1)

Subject to sections 38A(2) and 38B(5), if any change takes place in the particulars specified in respect of an authorized insurer in the application made by that insurer under section 7 or any information furnished under that section, and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the insurer must—

(Amended 51 of 1992 s. 5; 20 of 2023 s. 21)

(a)

within 1 month after the date on which the change takes place, notify the Authority of the change in the specified form; and

(b)

furnish the Authority with any information required by the Authority.

(Amended 20 of 2023 s. 21)

(2)

Subject to sections 38A(2) and 38B(5), if any change takes place in the particulars in respect of the directors, controllers or key persons in control functions of an authorized insurer, and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the insurer must—

(Amended 44 of 1990 s. 4; 51 of 1992 s. 5; 20 of 2023 s. 21)

(a)

within 1 month after the date on which the change takes place, notify the Authority of the change in the specified form; and

(b)

furnish the Authority with any information required by the Authority.

(Amended 20 of 2023 s. 21)

(2A)

(Repealed 20 of 2023 s. 21)

(3)

Subject to sections 13BB, 38A(2) and 38B(5), if an event specified in subsection (3A) occurs in relation to an authorized insurer on a date, the insurer must—

(a)

within 1 month after that date, notify the Authority of the occurrence of the event in the specified form; and

(b)

furnish the Authority with any information required by the Authority.

(Replaced 20 of 2023 s. 21)

(3A)

For the purposes of subsection (3), the event is—

(a)

in relation to an HK insurer or designated insurer—a person becomes, or ceases to be, a director, controller (other than a shareholder controller), minority shareholder controller, majority shareholder controller or key person in control functions of the insurer; or

(b)

in relation to a non-HK insurer other than a designated insurer—a person becomes, or ceases to be, a director, controller or key person in control functions of the insurer.

(Added 20 of 2023 s. 21)

(4)

Subject to subsection (5) and section 38B(4), the Authority may, if it appears to the Authority that any person appointed as controller or director (other than a controller or director to whom section 13A, 13AC, 13B or 13BA applies) of an authorized insurer is not, or is no longer, a fit and proper person to be appointed to that position, serve a notice in writing on the person and the insurer stating—

(Amended 44 of 1990 s. 4; 51 of 1992 s. 5; 12 of 2015 ss. 2 & 30; 20 of 2023 s. 21)

(a)

that the Authority objects to the appointment; and

(b)

that the Authority objects thereto on the ground that it appears to the Authority that the person so appointed is not, or is no longer, a fit and proper person to be appointed to the position in question.

(Amended 20 of 2023 s. 21)

(5)

The following provisions shall apply in relation to a notice of objection referred to in subsection (4)—

(a)

the Authority shall serve on the insurer and the person concerned a preliminary written notice stating—

(Amended 12 of 2015 s. 2)

(i)

that the Authority is considering the service on the insurer of a notice of objection under that subsection on the ground referred to in paragraph (b) thereof;

(ii)

that the insurer and that person may, within 1 month from the date of service of the preliminary notice, make written representations to the Authority and, if the insurer or that person so requests, oral representations to a person appointed for the purpose by the Authority;

(Amended 44 of 1990 s. 4)

(b)

(Repealed 12 of 2015 s. 30)

(c)

where representations are made under paragraph (a)(ii), the Authority shall take them into consideration before serving the notice of objection.

(6)

(Repealed 12 of 2015 s. 30)

(7)

(Repealed 50 of 1992 s. 3)

(8)

Any person who fails to comply with subsection (1), (2) or (3) commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 10)

(Amended 12 of 2015 ss. 2 & 30)

14A.

Determination of fit and proper

(1)

In determining whether a person is a fit and proper person for the purposes of sections 8, 8A, 13A, 13AC, 13AE, 13B, 13BA, 14, 15AAAB and 15AABA, the Authority must have regard to the following matters—

(Amended 17 of 2020 s. 14; 20 of 2023 s. 22)

(a)

the education or other qualifications or experience of the person;

(b)

the person’s ability to act competently, honestly and fairly;

(c)

the reputation, character, reliability and integrity of the person;

(d)

the person’s financial status or solvency;

(e)

whether any disciplinary action has been taken against the person by—

(i)

the Monetary Authority;

(ii)

the Securities and Futures Commission;

(iii)

the Mandatory Provident Fund Schemes Authority; or

(iv)

any other authority or regulatory organization, whether in Hong Kong or elsewhere, which, in the Authority’s opinion, performs a function similar to those of the Authority;

(f)

if the person is a body corporate in a group of companies, any information in the possession of the Authority, whether provided by the person or not, relating to—

(Amended 20 of 2023 s. 22)

(i)

any other body corporate in the group of companies; or

(ii)

any substantial shareholder or officer of the person or of any body corporate referred to in subparagraph (i);

(Amended 20 of 2023 s. 22)

(g)

the state of affairs of any other business which the person carries on or proposes to carry on; and

(Amended 20 of 2023 s. 22)

(h)

if the person is a body corporate—its internal controls and corporate governance.

(Added 20 of 2023 s. 22)

(2)

The obligations imposed on the Authority under subsection (1) are in addition to those of the Authority to have regard to any other matter that the Authority considers relevant in making the determination.

(Added 12 of 2015 s. 31)

Part III

Accounts and Statements

(Format changes—E.R. 4 of 2017)

15.

Appointment of auditor

(Amended 20 of 2023 s. 23)

(1)

An authorized insurer must appoint as its auditor—

(a)

for an HK insurer—a person who is not prohibited under section 20AAZZR of the Accounting and Financial Reporting Council Ordinance (Cap. 588) from holding any appointment as an auditor of a company and is not disqualified under section 393 of the Companies Ordinance (Cap. 622); or

(b)

for a non-HK insurer—a person—

(i)

who may lawfully practise as an auditor in the place of its incorporation; and

(ii)

without affecting subparagraph (i), who holds any qualification that the Authority accepts as being of a standard comparable to that of a person referred to in paragraph (a).

(Replaced 20 of 2023 s. 23)

(2)

An authorized insurer must make a first appointment under subsection (1) within 1 month after the date on which the authorized insurer begins to carry on insurance business.

(Replaced 20 of 2023 s. 23)

(2A)

After an appointment under subsection (1) comes to an end, the authorized insurer must, as soon as practicable, make a fresh appointment under that subsection.

(Added 20 of 2023 s. 23)

(3)

An authorized insurer making an appointment under subsection (1) must within 1 month after making the appointment serve on the Authority a notice of the appointment in writing stating the name and qualifications of the person appointed.

(Amended 12 of 2015 s. 2; 20 of 2023 s. 23)

(3A)-(3I)

(Repealed 20 of 2023 s. 23)

(4)

(Repealed 59 of 1993 s. 6)

(5)

An authorized insurer which contravenes subsection (1), (2), (2A) or (3) commits an offence and is liable to a fine at level 4, together with a further fine of $1,000 for each day on which the offence continues.

(Amended 59 of 1993 s. 6; 35 of 1996 s. 11; 20 of 2023 s. 23)

(6)

(Repealed 20 of 2023 s. 23)

(Amended 12 of 2015 s. 32)

15AAA.

Appointment of actuary

(1)

Subject to section 15AAAB—

(a)

an authorized insurer described in section 21B(1) must appoint a qualified actuary as its actuary for its long term business;

(b)

an authorized insurer described in section 21B(4) or (7) must appoint a qualified actuary as its actuary for its long term business carried on in or from Hong Kong;

(c)

an authorized insurer must appoint a qualified actuary as its actuary for its general business if it is—

(i)

an HK insurer that carries on general business;

(ii)

a designated insurer that carries on general business; or

(iii)

a non-HK insurer that carries on general business and in relation to which a permission under section 25AAC(1) is in effect; and

(Replaced 14 of 2025 s. 130)

(d)

an authorized insurer described in section 25AA(3) or (5) must appoint a qualified actuary as its actuary for its general business carried on in or from Hong Kong.

(2)

For the purposes of subsection (1), an actuary is a qualified actuary if the actuary—

(a)

possesses the prescribed qualifications; or

(b)

is acceptable to the Authority.

(3)

Subsection (1)(c) and (d) does not apply to an authorized insurer that is exempted under the rules made under section 129(1)(cb).

(4)

An authorized insurer must make a first appointment under subsection (1)(a) within 1 month after the date on which the authorized insurer begins to carry on long term business.

(5)

An authorized insurer must make a first appointment under subsection (1)(b) within 1 month after the date on which the authorized insurer begins to carry on long term business in or from Hong Kong.

(6)

An authorized insurer must make a first appointment under subsection (1)(c)—

(a)

if the insurer is carrying on general business on the commencement date* of section 44 of the Insurance (Amendment) Ordinance 2023 (20 of 2023) (commencement date)—before the end of the insurer’s financial year in which the commencement date falls; or

(b)

if the insurer begins to carry on general business on a day after the commencement date—within 1 month after that day.

(7)

An authorized insurer must make a first appointment under subsection (1)(d)—

(a)

if the insurer is carrying on general business in or from Hong Kong on the commencement date—before the end of the insurer’s financial year in which the commencement date falls; or

(b)

if the insurer begins to carry on general business in or from Hong Kong on a day after the commencement date—within 1 month after that day.

(8)

After an appointment under subsection (1) comes to an end, the authorized insurer must, as soon as practicable, make a fresh appointment under that subsection.

(9)

An authorized insurer that makes an appointment under subsection (1) must, within 1 month after making the appointment, serve on the Authority a written notice of the appointment.

(10)

An authorized insurer that contravenes subsection (1), (4), (5), (6), (7), (8) or (9) commits an offence and is liable on conviction—

(a)

to a fine at level 4; and

(b)

in the case of a continuing offence—to a further fine of $1,000 for each day during which the offence continues.

(Added 20 of 2023 s. 24)

Editorial Note:

* Commencement date: 1 July 2024.

15AAAB.

Approval for appointment of actuary

(1)

An authorized insurer must not appoint a person as its actuary under section 15AAA(1) unless the Authority has approved the appointment under subsection (2).

(2)

The Authority may approve the appointment of a person as an actuary of an authorized insurer—

(a)

on an application made by the insurer; and

(b)

on payment of a prescribed fee.

(3)

An application made under subsection (2)(a) must—

(a)

be in the specified form; and

(b)

be accompanied by any information specified by the Authority.

(4)

The Authority must not approve the appointment of a person as an actuary of the authorized insurer unless it is satisfied that the person is a fit and proper person to be so appointed.

(5)

After deciding on the application, the Authority must give the person and the authorized insurer a written notice of the result of the application.

(6)

If the application is rejected, the notice must state the reasons for the rejection.

(7)

An authorized insurer that contravenes subsection (1) commits an offence and is liable on conviction—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence—to a further fine of $2,000 for each day during which the offence continues.

(Added 20 of 2023 s. 24)

15AA.

Conditions on approval given under section 15AAAB(2)

(Amended 20 of 2023 s. 25)

(1)

This section applies if the Authority approves the appointment of a person as an actuary of an authorized insurer under section 15AAAB(2).

(Amended 20 of 2023 s. 25)

(1A)

For subsection (1), it does not matter whether the approval is—

(a)

given on an application made under section 15AAAB(2)(a); or

(b)

taken to be given by virtue of Part 2 of Schedule 12.

(Added 20 of 2023 s. 25)

(2)

The Authority may impose any conditions that it considers appropriate on the approval when the approval is given.

(Amended 20 of 2023 s. 25)

(3)

The Authority may also impose any conditions that it considers appropriate on the approval after the approval is given or taken to be given.

(Amended 20 of 2023 s. 25)

(4)

The Authority may amend or revoke any conditions imposed under subsection (2) or (3).

(5)

The power under subsection (2), (3) or (4) is only exercisable by notice in writing served on the authorized insurer and the person.

(6)

A notice under subsection (5) must, in the case of any conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions.

(7)

An imposition, amendment or revocation of any conditions under subsection (2), (3) or (4) takes effect at the time the notice under subsection (5) is served on the authorized insurer and the person or at the time specified in the notice, whichever is the later.

(Added 12 of 2015 s. 33)

15AAB.

Procedural requirements for rejecting application under section 15AAAB(2)(a), or imposing or amending conditions under section 15AA

(Amended 20 of 2023 s. 26)

(1)

The Authority must not—

(a)

reject an application made under section 15AAAB(2)(a) for the approval of the appointment of a person as an actuary of an authorized insurer;

(Amended 20 of 2023 s. 26)

(b)

impose a condition under section 15AA(2) or (3) on such an approval; or

(c)

amend such a condition under section 15AA(4),

without giving the insurer and the person an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(2)

In this section, a reference to an opportunity to make representations is a reference to an opportunity to make written representations or oral representations.

(Added 12 of 2015 s. 33)

15AABA.

Revocation of approval under section 15AAAB(2)

(1)

Subject to subsection (4), the Authority may, by a written notice served on an authorized insurer and the person appointed as the insurer’s actuary under section 15AAA(1) (relevant person), revoke the approval under section 15AAAB(2) if it appears to the Authority that the relevant person is not, or is no longer, a fit and proper person to be so appointed.

(2)

For subsection (1), it does not matter whether the approval is—

(a)

given on an application made under section 15AAAB(2)(a); or

(b)

taken to be given by virtue of Part 2 of Schedule 12.

(3)

The insurer must, by the date specified in the notice under subsection (1), terminate the appointment.

(4)

Before serving the notice under subsection (1), the Authority must serve on the authorized insurer and the relevant person a written notice stating—

(a)

that the Authority is considering the service on the insurer of a notice under that subsection because it appears to the Authority that the relevant person is not, or is no longer, a fit and proper person to be appointed as the insurer’s actuary; and

(b)

the effect of subsection (5).

(5)

The authorized insurer or the relevant person may, within 1 month after the date of service of the notice under subsection (4)—

(a)

make written representations to the Authority; and

(b)

if the insurer or the person so requests, make oral representations to a person appointed for the purpose by the Authority.

(6)

If representations are made under subsection (5), the Authority must take them into consideration before serving a notice under subsection (1).

(7)

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence—to a further fine of $2,000 for each day during which the offence continues.

(Added 20 of 2023 s. 27)

15AAC.

Offence to provide false information in connection with application for approval under section 15AAAB(2)(a)

(Amended 20 of 2023 s. 28)

(1)

A person commits an offence if the person, in connection with an application for the approval under section 15AAAB(2)(a)—

(Amended 20 of 2023 s. 28)

(a)

makes a statement that is false or misleading in a material particular; and

(b)

knows that, or is reckless as to whether, the statement is false or misleading in the material particular.

(2)

A person commits an offence if the person, in connection with an application for the approval under section 15AAAB(2)(a)—

(Amended 20 of 2023 s. 28)

(a)

omits a material particular from a statement with the result that the statement is rendered false or misleading; and

(b)

knows that, or is reckless as to whether, the material particular is omitted from the statement.

(3)

A person who commits an offence under subsection (1) or (2) is liable to a fine at level 5 and to imprisonment for 6 months.

(Added 12 of 2015 s. 33)

15AAD.

Person who is authorized insurer’s actuary under section 15AAA(1)(a) or (b) immediately before certain events continues to be so

(1)

This section applies if—

(a)

any of the following events (relevant event) occurs in relation to an authorized insurer—

(i)

a designation of the insurer under section 3B takes effect;

(ii)

a designation of the insurer under section 3B ceases to have effect;

(iii)

a permission given to the insurer under section 22A takes effect;

(iv)

a permission given to the insurer under section 22A ceases to have effect;

(Amended 14 of 2025 s. 131)

(v)

the insurer becoming a re-domiciled insurer under section 3BA(1); and

(Added 14 of 2025 s. 131)

(b)

immediately before the occurrence of the relevant event, a person is an actuary appointed by the insurer under section 15AAA(1)(a) or (b) in compliance with section 15AAAB(1).

(2)

On the occurrence of the relevant event, the person mentioned in subsection (1)(b)—

(a)

continues to be the authorized insurer’s actuary without the need for—

(i)

a fresh appointment under section 15AAA(1); or

(ii)

a fresh approval under section 15AAAB(2); and

(b)

is taken to be appointed by the insurer under the relevant provision.

(3)

In subsection (2)—

relevant provision

(

有關條文

), in relation to an authorized insurer, means whichever of the following provisions that becomes applicable to the insurer on the occurrence of the relevant event—

(a)

section 15AAA(1)(a);

(b)

section 15AAA(1)(b).

(Added 20 of 2023 s. 29)

15AAE.

Person who is authorized insurer’s actuary under section 15AAA(1)(c) or (d) immediately before certain events continues to be so

(1)

This section applies if—

(a)

any of the following events (relevant event) occurs in relation to an authorized insurer—

(i)

a designation of the insurer under section 3B takes effect;

(ii)

a designation of the insurer under section 3B ceases to have effect;

(iii)

a permission given to the insurer under section 25AAC takes effect;

(iv)

a permission given to the insurer under section 25AAC ceases to have effect;

(Amended 14 of 2025 s. 132)

(v)

the insurer becoming a re-domiciled insurer under section 3BA(1); and

(Added 14 of 2025 s. 132)

(b)

immediately before the occurrence of the relevant event, a person is an actuary appointed by the insurer under section 15AAA(1)(c) or (d) in compliance with section 15AAAB(1).

(2)

On the occurrence of the relevant event, the person mentioned in subsection (1)(b)—

(a)

continues to be the authorized insurer’s actuary without the need for—

(i)

a fresh appointment under section 15AAA(1); or

(ii)

a fresh approval under section 15AAAB(2); and

(b)

is taken to be appointed by the insurer under the relevant provision.

(3)

In subsection (2)—

relevant provision

(

有關條文

), in relation to an authorized insurer, means whichever of the following provisions that becomes applicable to the insurer on the occurrence of the relevant event—

(a)

section 15AAA(1)(c);

(b)

section 15AAA(1)(d).

(Added 20 of 2023 s. 29)

15A.

Notification in respect of auditors appointed under section 15

(1)

An authorized insurer must immediately give written notice to the Authority if—

(Amended 12 of 2015 ss. 2 & 34; 20 of 2023 s. 30)

(a)

the insurer decides to remove or replace an auditor appointed under section 15;

(b)

a person appointed under section 15 to be the auditor of the insurer ceases to be such auditor otherwise than in consequence of a decision referred to in paragraph (a); or

(c)

in relation to an HK insurer—

(Amended 12 of 2015 s. 34; 20 of 2023 s. 30)

(i)

the insurer either—

(A)

proposes to give special notice to its shareholders of a resolution removing an auditor appointed under section 395, 396, 397 or 398 of the Companies Ordinance (Cap. 622) or deemed to be reappointed under section 403 of that Ordinance before the expiry of the auditor’s term of office; or

(B)

gives notice to its shareholders of a resolution replacing an auditor so appointed or deemed to be reappointed at the expiry of the auditor’s term of office; and

(Amended 20 of 2023 s. 30)

(ii)

the auditor so appointed or deemed to be reappointed has also been appointed under section 15 to be the auditor of the insurer.

(Amended 28 of 2012 ss. 912 & 920)

(2)

An auditor appointed under section 15(1) by an authorized insurer must immediately give written notice to the Authority if—

(Amended 26 of 1994 s. 3; 12 of 2015 ss. 2 & 34; 20 of 2023 s. 30)

(a)

the auditor resigns;

(b)

for an auditor who has been so appointed for a fixed term—the auditor decides not to seek reappointment; or

(c)

the auditor decides to add a qualification or adverse statement to the auditor’s report annexed to the accounts and statements of the insurer required to be submitted under any requirement prescribed by virtue of section 17.

(Amended 26 of 1994 s. 3; 12 of 2015 s. 34; 20 of 2023 s. 30)

(3)

An authorized insurer which fails to comply with subsection (1) commits an offence and is liable to a fine at level 4, together with a further fine of $1,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 12; 12 of 2015 s. 34)

(4)

Where a person is charged with an offence under subsection (3), it shall be a defence if the person charged proves that he took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.

(Added 59 of 1993 s. 7)

15B.

Notification in respect of actuaries appointed under section 15AAA(1)

(Amended 12 of 2015 s. 35; 20 of 2023 s. 31)

(1)

An authorized insurer must immediately give written notice to the Authority if—

(Amended 12 of 2015 ss. 2 & 35; 20 of 2023 s. 31)

(a)

the insurer decides to remove or replace an actuary appointed under section 15AAA(1); or

(b)

a person appointed under section 15AAA(1) to be an actuary of the insurer ceases to be such actuary otherwise than in consequence of a decision referred to in paragraph (a).

(Amended 20 of 2023 s. 31)

(1A)

If, after the appointment of an actuary under section 15AAA(1), there is any change to the particulars in respect of the actuary and the particulars fall within a type of particulars set out in the form specified by the Authority for the purposes of this subsection, the authorized insurer must, within 1 month after the date on which the change takes place, notify the Authority of the change in the specified form.

(Added 20 of 2023 s. 31)

(2)

An actuary appointed under section 15AAA(1) by an authorized insurer must immediately give written notice to the Authority if—

(Amended 12 of 2015 ss. 2 & 35; 20 of 2023 s. 31)

(a)

the actuary resigns;

(b)

for an actuary who has been so appointed for a fixed term—the actuary decides not to seek reappointment; or

(Amended 20 of 2023 s. 31)

(c)

for an actuary appointed under section 15AAA(1)(a) or (b)—

(Replaced 20 of 2023 s. 31)

(i)

the actuary has advised the insurer that, in the actuary’s view, a course of action is being, or is proposed to be, followed by the insurer that is likely to cause the actuary to add a qualification or adverse amplification or adverse explanation to the actuary’s certificate accompanying the information required to be submitted under any requirement prescribed by virtue of section 17; and

(Replaced 20 of 2023 s. 31)

(ii)

after the insurer has had, in the opinion of the actuary, a reasonable time within which to act on that advice, that course of action is still being, or is still proposed to be, followed by the insurer.

(2A)-(2C)

(Repealed 20 of 2023 s. 31)

(3)

An authorized insurer which fails to comply with subsection (1) or (1A) commits an offence and is liable to a fine at level 4, together with a fine of $1,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 13; 12 of 2015 s. 35; 20 of 2023 s. 31)

(4)

Where a person is charged with an offence under subsection (3), it shall be a defence if the person charged proves that he took all reasonable precautions and exercised all due diligence to avoid the commission of the offence.

(Added 59 of 1993 s. 7)

15C.

Standards to be complied with by an actuary

An actuary appointed under section 15AAA(1) must comply with the prescribed standards or other standards as the Authority accepts as being comparable to the prescribed standards.

(Added 31 of 2000 s. 2. Amended 12 of 2015 s. 2; 20 of 2023 s. 32)

16.

Keeping and preserving of proper books of account

(1)

Without prejudice to the Companies Ordinance (Cap. 622) and the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), every authorized insurer shall cause to be kept proper books of account which may be kept either in a legible form or in a non-legible form capable of being reproduced in a legible form; but where any such books are kept otherwise than by making entries in a bound book, adequate precautions shall be taken for guarding against falsification and facilitating its discovery.

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 36)

(2)

Proper books of account, for the purposes of this section, are books of account which (in themselves or, if kept under subsection (1) otherwise than in a legible form, as reproduced in a legible form) sufficiently exhibit and explain all transactions entered into by the insurer in the course of any business carried on by the insurer.

(3)

If any books of account required to be kept by this section are kept by an authorized insurer by recording the matters in question otherwise than in a legible form, any power conferred by this Ordinance to require production of such books or to take copies thereof or extracts therefrom shall be construed as including power to require production of, and to take away, a reproduction of the recording or of the relevant part of it in a legible form.

(Amended 12 of 2015 s. 36)

(4)

Any books of account required to be kept by this section shall be preserved by the insurer for 7 years from the end of the financial year to which the last entry made or matter recorded therein relates.

(5)

The Authority may, by serving a notice in writing on an authorized insurer, require the insurer to provide to the Authority, within the period specified in the notice, any books of account that—

(a)

are required to be kept by this section; and

(b)

are required by the Authority for performing its functions.

(Added 12 of 2015 s. 36)

(6)

An authorized insurer served with the notice which, without reasonable excuse, fails to comply with it commits an offence and is liable to a fine at level 5.

(Added 12 of 2015 s. 36)

17.

Submission of statements, reports or other information

(Amended 14 of 2025 s. 133)

(1)

The Authority may, by rules made under section 129, prescribe requirements in relation to the submission by an authorized insurer to the Authority of any statements, reports or other information relating to the insurer’s business, including requirements as to the following matters—

(a)

what statements, reports or information must be submitted to the Authority;

(b)

whether the statements, reports or information must be audited;

(c)

how and when the statements, reports or information must be submitted.

(2)

The Authority may, at the written request of an authorized insurer, vary a requirement prescribed by virtue of subsection (1) that applies to the insurer.

(3)

An authorized insurer must comply with—

(a)

a requirement prescribed by virtue of subsection (1) that applies to the insurer; or

(b)

if the requirement is varied under subsection (2)—the requirement so varied.

(4)

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence—to a further fine of $1,000 for each day during which the offence continues.

(Replaced 20 of 2023 s. 33)

18.

Periodic actuarial investigation of authorized insurer with long term business

(Amended 12 of 2015 s. 38)

(1)

An authorized insurer—

(Amended 12 of 2015 s. 38; 20 of 2023 s. 34)

(a)

must, once in every 12 months or at such shorter intervals as the Authority may require, cause an investigation to be made into its financial condition in respect of its long term business including a valuation of its liabilities in respect of that business, by its actuary appointed under section 15AAA(1) for that business; and

(Amended 8 of 1989 s. 4)

(b)

when such an investigation has been made, or when at any other time an investigation into the financial condition of the insurer in respect of that business has been made with a view to the distribution of profits, or the results of which are made public, must—

(Amended 20 of 2023 s. 34)

(i)

cause an actuary’s report of the investigation to be made in the specified form; and

(ii)

submit the report to the Authority in accordance with the rules made under section 129.

(2)

Where under subsection (1) an authorized insurer causes an actuary’s report to be made on the actuary’s investigation into the financial condition of the insurer in respect of its long term business, the insurer must—

(Amended 20 of 2023 s. 34)

(a)

prepare a statement containing the information specified by the Authority in respect of that business as at the date to which the accounts of the insurer are made up for the purpose of the investigation; and

(b)

submit such statement to the Authority in accordance with the rules made under section 129.

(3)

In this section, for an authorized insurer described in section 21B(4) or (7), a reference to the insurer’s long term business is a reference to the insurer’s long term business carried on in or from Hong Kong.

(Replaced 20 of 2023 s. 34)

(Amended 12 of 2015 ss. 2 & 38; 20 of 2023 s. 34)

18A.

Periodic actuarial review of authorized insurer with general business

(1)

An authorized insurer (other than an insurer that is exempted under the rules made under section 129(1)(cb)) must—

(a)

once in every 12 months or at any shorter interval that the Authority requires, cause a review of the valuation of its insurance liabilities (as determined in accordance with the rules made under section 129) in respect of its general business to be conducted by the actuary appointed under section 15AAA(1) for that business;

(b)

cause the actuary’s report of the review to be made in the specified form; and

(c)

submit the report to the Authority in accordance with the rules made under section 129.

(2)

In subsection (1), for an authorized insurer described in section 25AA(3) or (5), a reference to the insurer’s general business is a reference to the insurer’s general business carried on in or from Hong Kong.

(Added 20 of 2023 s. 35)

19.

Statements of transactions of prescribed class or description

(1)

Classes or descriptions of agreements or arrangements appearing to the Authority as likely to be undesirable in the interests of policy holders may be prescribed for the purposes of this section, and every authorized insurer which enters into an agreement or arrangement of a class or description so prescribed shall, within such period as may be prescribed, furnish the Authority with a statement containing such particulars of that agreement or arrangement as may be prescribed.

(Amended 25 of 1994 s. 8)

(2)

Different classes or descriptions of agreements or arrangements may be prescribed for the purposes of this section in relation to authorized insurers of different classes or descriptions.

(3)

The whole or any part of any statement furnished to the Authority under this section may be deposited by the Authority with the Registrar of Companies for registration and may be published by the Authority in such ways as the Authority thinks appropriate.

(Amended 28 of 2012 ss. 912 & 920)

(Amended 12 of 2015 s. 2)

20.

(Repealed 20 of 2023 s. 36)

21.

(Repealed 20 of 2023 s. 36)

21A.

Disclosure to general public

(1)

The Authority may, by rules made under section 129, prescribe requirements in relation to the disclosure by an authorized insurer to the general public of information relating to the insurer’s state of affairs, including requirements as to the following matters—

(a)

the information that the insurer must disclose to the general public;

(b)

how and when the information must be disclosed.

(2)

The Authority may, at the written request of an authorized insurer, vary a requirement prescribed by virtue of subsection (1) that applies to the insurer.

(3)

An authorized insurer must comply with—

(a)

a requirement prescribed by virtue of subsection (1) that applies to the insurer; or

(b)

if the requirement is varied under subsection (2)—the requirement so varied.

(4)

An authorized insurer that contravenes subsection (3) commits an offence and is liable on conviction—

(a)

to a fine of $200,000; and

(b)

in the case of a continuing offence—to a further fine of $1,000 for each day during which the offence continues.

(Added 20 of 2023 s. 37)

Part IV

Long Term Business

(Format changes—E.R. 4 of 2017)

21B.

Maintenance of separate accounts and funds in respect of long term business

(1)

Subsections (2) and (3) apply to an authorized insurer that carries on long term business and that is—

(a)

an HK insurer;

(b)

a designated insurer; or

(c)

a non-HK insurer in relation to which a permission under section 22A(1) is in effect.

(2)

The insurer must, in respect of its long term business, maintain a separate account and a separate fund for each of the following parts of that business—

(a)

the part that is of a nature specified in class C in Part 2 of Schedule 1;

(b)

the part that is of a nature specified in class G in Part 2 of Schedule 1;

(c)

the part that is of a nature specified in class H in Part 2 of Schedule 1;

(d)

the part that is specified business.

(3)

Also, the insurer must, within the fund maintained under subsection (2)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business that is participating business.

(4)

Subsections (5) and (6) apply to an authorized insurer that carries on long term business in or from Hong Kong and that satisfies all of the following conditions—

(a)

the insurer is a non-HK insurer;

(b)

the insurer is not a designated insurer;

(c)

there is no permission under section 22A(1) that is in effect in relation to the insurer;

(d)

there is no election under section 22B(1) that is in effect in relation to the insurer.

(5)

The insurer must, in respect of its long term business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

(a)

the part that is of a nature specified in class C in Part 2 of Schedule 1 (other than long term reinsurance business with offshore risk);

(b)

the part that is of a nature specified in class G in Part 2 of Schedule 1 (other than long term reinsurance business with offshore risk);

(c)

the part that is of a nature specified in class H in Part 2 of Schedule 1 (other than long term reinsurance business with offshore risk);

(d)

the part that is specified business (other than long term reinsurance business with offshore risk);

(e)

the part that is long term reinsurance business with offshore risk.

(6)

Also, the insurer must, within the fund maintained under subsection (5)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business (other than long term reinsurance business with offshore risk) that is participating business.

(7)

Subsections (8) and (9) apply to a non-HK insurer in relation to which an election under section 22B(1) is in effect.

(8)

The insurer must, in respect of its long term business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

(a)

the part that is of a nature specified in class C in Part 2 of Schedule 1;

(b)

the part that is of a nature specified in class G in Part 2 of Schedule 1;

(c)

the part that is of a nature specified in class H in Part 2 of Schedule 1;

(d)

the part that is specified business.

(9)

Also, the insurer must, within the fund maintained under subsection (8)(d), maintain at least 1 separate account and 1 separate sub-fund for the part of the specified business that is participating business.

(10)

An authorized insurer that fails to comply with this section commits an offence and is liable on conviction—

(a)

to a fine of $1,000,000; and

(b)

in the case of a continuing offence—to a further fine of $20,000 for each day during which the offence continues.

(11)

In this section—

long term reinsurance business with offshore risk

(

具離岸風險的長期再保險業務

) means any long term business that—

(a)

is reinsurance business; and

(b)

is not long term reinsurance business with onshore risk;

long term reinsurance business with onshore risk

(

具在岸風險的長期再保險業務

) means—

(a)

any facultative reinsurance business, being long term business, under which the risk ceded is underwritten in Hong Kong, that is to say—

(i)

the policy is issued in Hong Kong;

(ii)

the proposal form, application form or any other form of a similar nature is signed, submitted, received or accepted in Hong Kong; or

(iii)

the risk is accepted in Hong Kong; or

(b)

any treaty reinsurance business, being long term business, in relation to which the risk is underwritten in Hong Kong, that is to say—

(i)

the treaty is signed or accepted in Hong Kong; or

(ii)

the treaty negotiation is concluded in Hong Kong,

excluding any treaty reinsurance business under which less than 25% of the total risk ceded (determined in terms of the gross premiums) is underwritten in Hong Kong as described in paragraph (a);

participating business

(

分紅業務

) means any long term business in relation to which a policy holder has a right to receive, at the discretion of the insurer, a financial benefit that is determined based on a profit-sharing mechanism as a share of the insurer’s profits in respect of the insurer’s business or a part of the insurer’s business;

specified business

(

指明業務

) means the business of a nature specified in class A, B, D, E, F or I in Part 2 of Schedule 1.

(Added 20 of 2023 s. 38)

22.

Provisions supplementary to section 21B

(Amended 20 of 2023 s. 39)

(1)

An authorized insurer must ensure that the receipts of a part of its business for which a separate account and a separate fund or sub-fund are required to be maintained under section 21B—

(a)

are entered in that account; and

(b)

are carried to and form that fund or sub-fund with an appropriate name.

(Replaced 20 of 2023 s. 39)

(1A)

For a non-HK insurer that carries on long term business in or from Hong Kong, the Authority may, at the request in writing of the insurer, permit the insurer to maintain accounts of other insurance business closely related to the long term business or part of it as part of an account maintained under section 21B.

(Added 75 of 1995 s. 4. Amended 12 of 2015 ss. 2 & 41; 20 of 2023 s. 39)

(2)

An authorized insurer must maintain any books of account and other records that are necessary for identifying—

(a)

the assets representing each fund or sub-fund maintained by the insurer under section 21B; and

(b)

the liabilities attributable to the part of its business for which the fund or sub-fund is maintained.

(Replaced 20 of 2023 s. 39)

(3)

For each fund or sub-fund maintained by an authorized insurer under section 21B, the aggregate value of the assets representing the fund or sub-fund must not be less than the amount of the liabilities attributable to the part of its business for which the fund or sub-fund is maintained.

(Replaced 20 of 2023 s. 39)

(3A)

For each fund maintained by an authorized insurer under section 21B(2)(b) or (c), (5)(b) or (c) or (8)(b) or (c), the aggregate value of the assets representing the fund must not be less than the account balance of the fund.

(Added 20 of 2023 s. 39)

(3B)

The aggregate value of the assets representing all the funds maintained by an authorized insurer under section 21B(2) or (8) must not be less than the aggregate of—

(a)

the amount of the liabilities attributable to the parts of its business for which the funds are maintained; and

(b)

the amount that is required to be held in those funds in accordance with the rules made under section 129(1)(c).

(Added 20 of 2023 s. 39)

(3C)

The aggregate value of the assets representing all the funds maintained by an authorized insurer under section 21B(5)(a), (b), (c) and (d) must not be less than the aggregate of—

(a)

the amount of the liabilities attributable to the parts of its business for which the funds are maintained; and

(b)

the amount that is required to be held in those funds in accordance with the rules made under section 129(1)(c).

(Added 20 of 2023 s. 39)

(4)

(Repealed 59 of 1993 s. 8)

(5)

If subsection (1), (2), (3), (3A), (3B) or (3C) is not complied with in relation to an authorized insurer, the insurer commits an offence and is liable to a fine of $1,000,000 and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues.

(Amended 35 of 1996 s. 16; 12 of 2015 s. 41; 20 of 2023 s. 39)

(6)

In this section—

account balance

(

帳目結餘

), in relation to a fund, means the accumulation of contributions paid into the fund, reduced by applicable expenses, fees, charges, or actual investment loss, and increased by actual investment income or interests credited to the fund.

(Added 20 of 2023 s. 39)

22A.

Non-HK insurer may maintain separate accounts and funds in accordance with section 21B(2) and (3)

(Amended 20 of 2023 s. 40)

(1)

For a non-HK insurer that carries on long term business, the Authority may, at the request in writing of the insurer, permit the insurer to comply with section 21B(2) and (3), instead of section 21B(5) and (6), for the period specified in the permission.

(Amended 20 of 2023 s. 40)

(2)-(4)

(Repealed 20 of 2023 s. 40)

(5)

The Authority must, as soon as practicable after giving the permission, publish a notice in the Gazette stating the name of the insurer and the fact that the permission has been given.

(Amended 20 of 2023 s. 40)

(Added 4 of 1987 s. 2. Amended 59 of 1993 s. 9; 12 of 2015 ss. 2 & 42)

22B.

Non-HK insurer may elect to maintain separate accounts and funds in accordance with section 21B(8) and (9)

(1)

A non-HK insurer (other than a designated insurer and an insurer in relation to which a permission under section 22A(1) is in effect) may, by a written notice, elect to comply with section 21B(8) and (9), instead of section 21B(5) and (6).

(2)

The notice under subsection (1) must—

(a)

be in the specified form;

(b)

be served on the Authority; and

(c)

state the date on which the insurer intends the election to take effect (intended effective date).

(3)

The election under subsection (1) takes effect—

(a)

if the notice is served on the Authority at least 14 days before the intended effective date—on the intended effective date; or

(b)

otherwise—on the expiry of 14 days after the date on which the notice is served on the Authority.

(4)

The insurer may, by a written notice, withdraw the election under subsection (1).

(5)

The notice of withdrawal under subsection (4) must—

(a)

be in the specified form;

(b)

be served on the Authority; and

(c)

state the date on which the insurer intends the withdrawal to take effect (intended withdrawal date).

(6)

The withdrawal under subsection (4) takes effect—

(a)

if the notice of withdrawal is served on the Authority at least 14 days before the intended withdrawal date—on the intended withdrawal date; or

(b)

otherwise—on the expiry of 14 days after the date on which the notice of withdrawal is served on the Authority.

(Added 20 of 2023 s. 41)

23.

Application of assets of authorized insurer with long term business

(Amended 12 of 2015 s. 43)

(1)

Subject to subsections (1A), (2) and (3) and section 45(2), the assets representing a fund maintained by an authorized insurer under section 21B(2), (5) or (8) for a part of its business may only be applied for that part of the business.

(Amended 59 of 1993 s. 10)

(1A)

Subject to subsection (3) and section 45(2), the assets representing a sub-fund maintained by an authorized insurer under section 21B(3), (6) or (9) for a part of its participating business (as defined by section 21B(11)) may only be applied for that part of the business or in accordance with the profit-sharing mechanism to which the business relates.

(Added 20 of 2023 s. 42)

(2)

Subject to subsection (1A), if an investigation mentioned in section 18, or made in accordance with a requirement under section 32, shows that the following provisions (relevant provisions) are complied with—

(a)

for an authorized insurer described in section 21B(1) or (7)—section 22(3), (3A) and (3B); or

(b)

for an authorized insurer described in section 21B(4)—section 22(3), (3A) and (3C),

subsection (1) only applies to the part of the assets necessary to secure the compliance with the relevant provisions.

(Replaced 20 of 2023 s. 42)

(3)

Subsections (1) and (1A) do not preclude an authorized insurer from exchanging, at fair market value, assets representing a fund or sub-fund maintained by the insurer under section 21B for other assets of the insurer.

(4)

Any mortgage or charge is void to the extent to which it contravenes subsection (1) or (1A).

(5)

To avoid doubt, money from a fund or sub-fund maintained by an authorized insurer under section 21B may not be used for any other part of the business of the insurer apart from the part of the business for which the fund or sub-fund is maintained despite any arrangement for its subsequent repayment out of the receipts of that other part of the business.

(Amended 59 of 1993 s. 10)

(6)

An authorized insurer, or a body corporate of which an authorized insurer is a subsidiary, must not declare a dividend to shareholders at any time when section 22(3), (3A), (3B) or (3C) is not complied with.

(7)

An authorized insurer or body corporate which fails to comply with subsection (1), (1A) or (6) commits an offence and is liable to a fine of $1,000,000 and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues.

(Amended 35 of 1996 s. 17)

(Amended 12 of 2015 s. 43; 20 of 2023 s. 42)

24.

Sanction of Court of First Instance for transfer of long term business

(1)

Where it is proposed to carry out a scheme under which the whole or part of the long term business carried on in Hong Kong by an authorized insurer (the transferor company) is to be transferred to another insurer (the transferee company) the transferor company or transferee company may apply to the Court of First Instance, by petition, for an order sanctioning the scheme.

(Amended 12 of 2015 s. 2)

(2)

The Court of First Instance shall not determine an application under this section unless the petition is accompanied by a report on the terms of the scheme by an independent actuary and the Court of First Instance is satisfied that the requirements of subsection (3) have been complied with.

(3)

The requirements referred to in subsection (2) are—

(a)

that a notice has been published in the Gazette and, except where the Court of First Instance has otherwise directed, in an English language newspaper and a Chinese language newspaper (being in each case a newspaper specified in a list of newspapers approved by the Chief Secretary for Administration for the purposes of this section) stating that the application has been made and giving the address of the offices at which, and the period for which, copies of the documents mentioned in paragraph (d) will be available as required by that paragraph;

(Amended 34 of 1988 s. 4; 44 of 1990 s. 5; L.N. 362 of 1997)

(b)

except where the Court of First Instance has otherwise directed, that a statement—

(i)

setting out the terms of the scheme; and

(ii)

containing a summary of the report mentioned in subsection (2) sufficient to indicate the opinion of the actuary on the likely effects of the scheme on the long term policy holders of the insurers concerned,

has been sent to each of those policy holders and to every member of those insurers;

(c)

that a copy of the petition, of the report mentioned in subsection (2) and of any statement sent out under paragraph (b) has been served on the Authority and that a period of not less than 21 days has elapsed since the date of service;

(Amended 12 of 2015 s. 2)

(d)

that copies of the petition and of the report mentioned in subsection (2) have been open to inspection at offices in Hong Kong of the insurers concerned or their representatives for a period of not less than 21 days beginning with the date of the first publication of a notice in accordance with paragraph (a).

(4)

Each of the insurers concerned shall furnish a copy of the petition and of the report mentioned in subsection (2) to any person who asks for one at any time before an order sanctioning the scheme is made on the petition.

(5)

On any petition under this section—

(a)

the Authority; and

(Amended 12 of 2015 s. 2)

(b)

any person (including any employee of the transferor company or the transferee company) who alleges that he would be adversely affected by the carrying out of the scheme,

shall be entitled to be heard.

(6)

The Court of First Instance shall not make an order sanctioning the scheme unless it is satisfied that the transferee company is, or immediately after the making of the order will be, authorized to carry on any long term business to be transferred under the scheme.

(7)

No such transfer as is mentioned in subsection (1) shall be carried out unless the scheme relating to the transfer has been sanctioned by the Court of First Instance in accordance with this section; and no order shall be made under section 673 or 675 of the Companies Ordinance (Cap. 622) in respect of so much of any compromise or arrangement as involves any such transfer.

(Amended 28 of 2012 ss. 912 & 920)

(8)

Any insurer which fails to comply with subsection (4) commits an offence and is liable to a fine at level 4.

(Amended 35 of 1996 s. 18)

(Amended 25 of 1998 s. 2)

25.

Provisions supplementary to section 24

(1)

Where the Court of First Instance makes an order under section 24 sanctioning a scheme the Court of First Instance may, either by that order or by any subsequent order, make provision for all or any of the following matters—

(a)

the transfer to the transferee company of the whole or any part of the undertaking and of the property or liabilities of the transferor company;

(b)

the allotting or appropriation by the transferee company of any shares, debentures, policies or other like interests in the transferee company which under the scheme are to be allotted or appropriated by the transferee company to or for any person;

(c)

the continuation by or against the transferee company of any legal proceedings pending by or against the transferor company;

(d)

the dissolution, without winding up, of the transferor company;

(e)

such incidental, consequential and supplementary matters as are necessary to secure that the scheme shall be fully and effectively carried out.

(2)

Where any such order provides for the transfer of property or liabilities, that property shall, by virtue of the order, be transferred to and vest in, and those liabilities shall, by virtue of the order, be transferred to and become the liabilities of, the transferee company, and in the case of any property, if the order so directs, freed from any mortgage or charge which is by virtue of the scheme to cease to have effect.

(3)

For the purposes of any provision requiring the delivery of an instrument of transfer as a condition for the registration of a transfer of any property (including in particular sections 150 and 320 of the Companies Ordinance (Cap. 622)) an order which by virtue of this section operates to transfer any property shall be treated as an instrument of transfer.

(Amended 28 of 2012 ss. 912 & 920)

(4)

Where a scheme is sanctioned by an order of the Court of First Instance under section 24 the transferee company shall, within 10 days from the date on which the order is made or such longer period as the Authority may allow, deposit 2 office copies of the order with the Authority.

(Amended 12 of 2015 s. 2)

(5)

Any person who fails to comply with subsection (4) commits an offence and is liable to a fine at level 4.

(Amended 35 of 1996 s. 19)

(6)

In this section

property

(

財產

) includes property, rights and powers of every description;

liabilities

(

負債

) includes duties, and

shares

(

股份

) and

debentures

(

債權證

) have the same meaning as in the Companies Ordinance (Cap. 622).

(Amended 28 of 2012 ss. 912 & 920)

(Amended 25 of 1998 s. 2)

Part IVA

Maintenance of Funds, and Assets in Hong Kong, in respect of General Business

(Part IVA added 26 of 1994 s. 5. Amended 20 of 2023 s. 43)

(Format changes—E.R. 4 of 2017)

25AA.

Maintenance of separate accounts and funds in respect of general business

(1)

Subsection (2) applies to an authorized insurer that carries on long term business and general business and that is—

(a)

an HK insurer;

(b)

a designated insurer; or

(c)

a non-HK insurer in relation to which a permission under section 25AAC(1) is in effect.

(2)

The insurer must maintain a separate account and a separate fund for the part of its business that is general business.

(3)

Subsection (4) applies to an authorized insurer that carries on general business in or from Hong Kong and that satisfies all of the following conditions—

(a)

the insurer is a non-HK insurer;

(b)

the insurer is not a designated insurer;

(c)

there is no permission under section 25AAC(1) that is in effect in relation to the insurer;

(d)

there is no election under section 25AAD(1) that is in effect in relation to the insurer.

(4)

The insurer must, in respect of its general business carried on in or from Hong Kong, maintain a separate account and a separate fund for each of the following parts of that business—

(a)

the part that is general reinsurance business with offshore risk;

(b)

the part that is not general reinsurance business with offshore risk.

(5)

Subsection (6) applies to a non-HK insurer in relation to which an election under section 25AAD(1) is in effect.

(6)

The insurer must maintain a separate account and a separate fund for the part of its business that is general business carried on in or from Hong Kong.

(7)

An authorized insurer that fails to comply with subsection (2), (4) or (6) commits an offence and is liable on conviction—

(a)

to a fine of $1,000,000; and

(b)

in the case of a continuing offence—to a further fine of $20,000 for each day during which the offence continues.

(8)

In this section—

general reinsurance business with offshore risk

(

具離岸風險的一般再保險業務

) means any general business that—

(a)

is reinsurance business; and

(b)

does not fall within paragraph (b) or (c) of the definition of general business with onshore risk in section 25A(12).

(Added 20 of 2023 s. 44)

25AAB.

Provisions supplementary to section 25AA

(1)

An authorized insurer must ensure that the receipts of a part of its business for which a separate account and a separate fund are required to be maintained under section 25AA—

(a)

are entered in that account; and

(b)

are carried to and form that fund with an appropriate name.

(2)

An authorized insurer must maintain any books of account and other records that are necessary for identifying—

(a)

the assets representing each fund maintained by the insurer under section 25AA; and

(b)

the liabilities attributable to the part of its business for which the fund is maintained.

(3)

For each fund maintained by an authorized insurer under section 25AA (other than under section 25AA(4)(a)), the aggregate value of the assets representing the fund must not be less than the aggregate of—

(a)

the amount of the liabilities attributable to the part of its business for which the fund is maintained; and

(b)

the amount that is required to be held in the fund in accordance with the rules made under section 129(1)(c).

(4)

For a fund maintained by an authorized insurer under section 25AA(4)(a), the aggregate value of the assets representing the fund must not be less than the amount of the liabilities attributable to the part of its business for which the fund is maintained.

(5)

If subsection (1), (2), (3) or (4) is not complied with in relation to an authorized insurer, the insurer commits an offence and is liable on conviction—

(a)

to a fine of $1,000,000; and

(b)

in the case of a continuing offence—to a further fine of $20,000 for each day during which the offence continues.

(Added 20 of 2023 s. 44)

25AAC.

Non-HK insurer may maintain separate accounts and funds in accordance with section 25AA(2)

(1)

For a non-HK insurer that carries on general business, the Authority may, at the written request of the insurer, permit the insurer to comply with section 25AA(2), instead of section 25AA(4), for the period specified in the permission.

(2)

The Authority must, as soon as practicable after giving the permission, publish a notice in the Gazette stating the name of the insurer and the fact that the permission has been given.

(Added 20 of 2023 s. 44)

25AAD.

Non-HK insurer may elect to maintain separate accounts and funds in accordance with section 25AA(6)

(1)

A non-HK insurer (other than a designated insurer and an insurer in relation to which a permission under section 25AAC(1) is in effect) may, by a written notice, elect to comply with section 25AA(6), instead of section 25AA(4).

(2)

The notice under subsection (1) must—

(a)

be in the specified form;

(b)

be served on the Authority; and

(c)

state the date on which the insurer intends the election to take effect (intended effective date).

(3)

The election under subsection (1) takes effect—

(a)

if the notice is served on the Authority at least 14 days before the intended effective date—on the intended effective date; or

(b)

otherwise—on the expiry of 14 days after the date on which the notice is served on the Authority.

(4)

The insurer may, by a written notice, withdraw the election under subsection (1).

(5)

The notice of withdrawal under subsection (4) must—

(a)

be in the specified form;

(b)

be served on the Authority; and

(c)

state the date on which the insurer intends the withdrawal to take effect (intended withdrawal date).

(6)

The withdrawal under subsection (4) takes effect—

(a)

if the notice of withdrawal is served on the Authority at least 14 days before the intended withdrawal date—on the intended withdrawal date; or

(b)

otherwise—on the expiry of 14 days after the date on which the notice of withdrawal is served on the Authority.

(Added 20 of 2023 s. 44)

25AAE.

Application of assets of authorized insurer with general business

(1)

Subject to subsections (2) and (3), the assets representing a fund maintained by an authorized insurer under section 25AA for a part of its business may only be applied for that part of the business.

(2)

Subsection (1) only applies to the part of the assets necessary to secure compliance with section 25AAB(3) and (4).

(3)

Subsection (1) does not preclude an authorized insurer from exchanging, at fair market value, assets representing a fund maintained by the insurer under section 25AA for other assets of the insurer.

(4)

Any mortgage or charge is void to the extent to which it contravenes subsection (1).

(5)

To avoid doubt, money from a fund maintained by an authorized insurer under section 25AA may not be used for any other business of the insurer apart from the part of its business for which the fund is maintained despite any arrangement for its subsequent repayment out of the receipts of that other business.

(6)

An authorized insurer, or a body corporate of which an authorized insurer is a subsidiary, must not declare a dividend to shareholders at any time when section 25AAB(3) or (4) is not complied with.

(7)

An authorized insurer or body corporate that fails to comply with subsection (1) or (6) commits an offence and is liable on conviction—

(a)

to a fine of $1,000,000; and

(b)

in the case of a continuing offence—to a further fine of $20,000 for each day during which the offence continues.

(Added 20 of 2023 s. 44)

25A.

Maintenance of assets in Hong Kong in respect of general business

(Amended 20 of 2023 s. 45)

(1)

(Repealed 20 of 2023 s. 45)

(2)

This section—

(a)

(subject to paragraph (b)) applies to an authorized insurer that carries on general business in or from Hong Kong; and

(b)

does not apply to an authorized insurer that is exempted under the rules made under section 129(1)(da).

(Replaced 20 of 2023 s. 45)

(3)

Subject to subsections (6) and (8)—

(a)

an authorized insurer must maintain assets in Hong Kong in respect of its insurance liabilities (as referred to in subsection (3A)); and

(b)

the value of the assets so maintained must not be less than the amount prescribed by the rules made under section 129.

(Replaced 20 of 2023 s. 45)

(3A)

For the purposes of subsection (3), the insurance liabilities are liabilities—

(a)

arising from the authorized insurer’s general business with onshore risk carried on in or from Hong Kong (other than the part of that business that is exempted under the rules made under section 129(1)(da)); and

(b)

determined in accordance with the rules made under section 129.

(Added 20 of 2023 s. 45)

(4)-(5)

(Repealed 20 of 2023 s. 45)

(6)

Where the Authority is satisfied that there are special or unusual circumstances that make it impracticable for an authorized insurer to comply with the requirements of this section, the Authority may, provided the Authority is satisfied with the financial status of the insurer, exempt the insurer in whole or in part from the requirements of this section and the Authority may attach such conditions to, or limitations in respect of, the exemption as the Authority considers appropriate including, without limiting the foregoing, a limitation on the duration of the exemption.

(Amended 12 of 2015 s. 2)

(7)

For the avoidance of doubt, special or unusual circumstances (特殊或不尋常情況) under subsection (6) does not include—

(a)

administrative expenses or other inconvenience associated with compliance with this section; or

(b)

the fact that compliance with this section does not accord with an authorized insurer’s investment policies.

(8)

The requirements under subsection (3) to maintain assets in Hong Kong shall be relieved to the extent, if any, of any assets which an authorized insurer is, by the laws of any place outside Hong Kong, required to and does maintain in that place and which would, upon the liquidation of the insurer, fall within the description of assets that is contained in section 265(1)(e)(i) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32).

(Amended 28 of 2012 ss. 912 & 920)

(9)

(Repealed 20 of 2023 s. 45)

(10)

An authorized insurer that—

(Amended 12 of 2015 s. 44)

(a)

takes any action or fails to take any action, which it knows will result in a contravention of subsection (3); or

(b)

fails to comply with conditions attached to an exemption under subsection (6), unless it establishes that, at the time it failed to so comply, it was complying with the requirements of subsection (3),

commits an offence and is liable to—

(i)

a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years; and

(Amended 35 of 1996 s. 20)

(ii)

a further fine of $1,000 for each day on which the insurer continues to contravene the requirements of subsection (3) or the conditions attached to an exemption under subsection (6), as the case may be.

(Amended 35 of 1996 s. 20)

(11)

(Repealed 20 of 2023 s. 45)

(12)

In this section—

assets in Hong Kong

(

在港資產

)—

(a)

means—

(i)

assets of the type set out in Schedule 8; or

(ii)

other assets or guarantees, or other arrangements in lieu of assets, approved by the Authority in writing in a particular case; and

(b)

does not include assets the titles to which are subject to any encumbrance or charge, other than a floating charge;

direct business

(

直接業務

) means the business of effecting and carrying out contracts of insurance, other than contracts of reinsurance;

general business with onshore risk

(

具在岸風險的一般業務

) means—

(a)

any direct business that satisfies any of the following conditions—

(i)

the direct business is of a nature specified in class 1, 2, 4 or 7 in Part 3 of Schedule 1 and—

(A)

the policy is issued in Hong Kong;

(B)

the proposal form, application form or any other form of a similar nature is prepared, signed, submitted, received or accepted in Hong Kong; or

(C)

the risk is accepted in Hong Kong;

(ii)

the direct business is of a nature specified in class 3 or 10 in Part 3 of Schedule 1 and the vehicle being insured is registered in Hong Kong;

(iii)

the direct business is of a nature specified in class 8 or 9 in Part 3 of Schedule 1 and the property being insured is located in Hong Kong;

(iv)

the direct business is of a nature specified in class 5, 6, 11, 12, 13, 14, 15, 16 or 17 in Part 3 of Schedule 1 and the policy holder—

(A)

is resident in Hong Kong; or

(B)

is a company;

(b)

any facultative reinsurance business under which the risk ceded arises from any direct business mentioned in paragraph (a); or

(c)

any treaty reinsurance business, being general business, in relation to which the risk is underwritten in Hong Kong, that is to say—

(i)

the treaty is signed or accepted in Hong Kong; or

(ii)

the treaty negotiation is concluded in Hong Kong,

excluding any treaty reinsurance business under which less than 25% of the total risk ceded (determined in terms of the gross premiums) arises from any direct business mentioned in paragraph (a).

(Added 20 of 2023 s. 45)

(Amended 12 of 2015 s. 44)

25B.

Direction by Authority to re-determine liabilities

(Amended 12 of 2015 s. 2)

(1)

Where the Authority is of the opinion that an authorized insurer’s insurance liabilities mentioned in section 25A(3A) would be significantly greater if determined as of a day later than the date as of which the liabilities are required to be determined in accordance with the rules made under section 129, the Authority may, by notice sent to the insurer, direct the insurer to re-determine the liabilities as of a date specified in the notice, and the Authority may specify the manner of re-determination, and, in that case, the insurer must re-determine the liabilities as of the date and in the manner, if any, specified in the notice.

(2)

Where an authorized insurer receives a notice under this section, it must forthwith in the manner specified, if any, re-determine the liabilities as of the specified date and, if the liabilities are greater than those determined under section 25A, it must, not later than 3 months after the date it received the notice, commence maintaining assets in Hong Kong in accordance with section 25A, as modified by this section, and the insurer must continue to so maintain assets in Hong Kong until the next determination of the liabilities under section 25A.

(3)

An authorized insurer must, not later than the end of the 3 month period referred to in subsection (2)—

(Amended 12 of 2015 s. 45; 20 of 2023 s. 46)

(a)

notify the Authority that it has complied with the requirements of that subsection; and

(b)

file a statement in the specified form setting forth the assets and liabilities as re-determined under this section.

(4)

An authorized insurer that—

(Amended 12 of 2015 s. 45)

(a)

fails to comply with the requirements of subsection (2) within the 3 month period referred to in that subsection; or

(b)

takes any action or fails to take any action which it knows will result in it failing to maintain assets in Hong Kong as required by this section,

commits an offence and is liable to—

(i)

a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years; and

(Amended 35 of 1996 s. 21)

(ii)

a further fine of $1,000 for each day on which the insurer—

(Amended 35 of 1996 s. 21)

(A)

continues to fail to comply with the requirements of subsection (2) after the expiry of the 3 month period referred to in that subsection; or

(B)

continues to fail to maintain assets as required by this section,

as the case may be.

(5)

An authorized insurer that fails to comply with subsection (3) commits an offence and is liable to a fine at level 4 and a further fine of $1,000 for each day on which the insurer continues to fail to notify the Authority or file the statement after the expiry of the 3 month period referred to in that subsection.

(Amended 35 of 1996 s. 21)

(6)

In this section—

assets in Hong Kong

(

在港資產

) has the meaning given by section 25A(12).

(Added 20 of 2023 s. 46)

(Amended 12 of 2015 ss. 2 & 45; 20 of 2023 s. 46)

25C.

Letter of credit or other commitment from a bank

(1)

An authorized insurer may, instead of maintaining assets in Hong Kong as required by section 25A or 25B, substitute, in whole or in part, a letter of credit or other commitment from a bank, as defined in the Banking Ordinance (Cap. 155), in favour of the Authority, but the terms and conditions attached to such a letter of credit or other commitment are subject to the approval of the Authority.

(Amended 20 of 2023 s. 47)

(2)

The Authority may, if in its opinion it would appropriately safeguard the interests of policy holders or potential policy holders, exercise its right to payment pursuant to a letter of credit or other commitment referred to in subsection (1).

(3)

Any payment made to the Authority pursuant to a letter of credit or other commitment shall be held in trust for the insurer as if it were a deposit made by an authorized insurer under section 35A(1).

(4)

Nothing in this section shall limit the powers of the Authority to require a deposit under section 35A(1).

(5)

In subsection (1)—

assets in Hong Kong

(

在港資產

) has the meaning given by section 25A(12).

(Added 20 of 2023 s. 47)

(Amended 12 of 2015 s. 2)

Part IVB

Transfer of General Business

(Part IVB added 75 of 1995 s. 6)

(Format changes—E.R. 4 of 2017)

25D.

Approval of transfer of general business

(1)

Where it is proposed to execute an instrument by which an authorized insurer (the transferor) is to transfer to another insurer (the transferee) all its rights and obligations under such general policies, or general policies of such descriptions, as may be specified in the instrument, the transferor may apply to the Authority for its approval of the transfer.

(2)

The Authority shall not determine an application made under subsection (1) unless—

(Amended 12 of 2015 s. 2)

(a)

the documents and particulars specified in subsection (3) have been produced to the Authority to its satisfaction; and

(b)

the Authority is satisfied that the requirements of subsection (4) have been complied with.

(3)

The documents and particulars referred to in subsection (2)(a) are—

(a)

a copy of the proposed instrument of transfer intended to be executed by the transferor and the transferee;

(b)

a report setting out the particulars of the transfer and of all legal proceedings, begun or in contemplation, relating to any of the policies included in the transfer;

(c)

a copy of the notice referred to in subsection(4)(a) as published in the Gazette or newspapers; and

(d)

without limiting the Authority’s power to require any relevant information, particulars of such information as the Authority may require from the transferee concerning its affairs including its membership.

(4)

The requirements referred to in subsection (2)(b) are—

(a)

that the transferor has published a notice in the Gazette and respectively in an English language newspaper and a Chinese language newspaper (being in each case a newspaper specified in a list of newspapers approved by the Chief Secretary for Administration for the purposes of this section) stating that the application has been made and giving the address of the offices at which, and the period for which , copies of the documents mentioned in paragraph (b)(iii) will be available as required by that paragraph;

(Amended L.N. 362 of 1997)

(b)

except insofar as the Authority has otherwise directed, that the transferor has forthwith—

(Amended 12 of 2015 s. 2)

(i)

sent a copy of the notice published under paragraph (a) to every affected policy holder;

(ii)

sent a copy of the said notice to every other person who claims an interest in a policy included in the transfer and has given written notice of his claim to the transferor; and

(iii)

made available for inspection by persons having an interest in the transfer copies of a report setting out particulars of the transfer and approved by the Authority for the purpose at one or more places in Hong Kong during office hours for a period of not less than 30 days beginning from the date of the first publication of the notice in accordance with paragraph (a).

(5)

The notice referred to in subsection (4) shall include a statement that written representations concerning the transfer may be sent to the Authority before a day specified in the notice, which shall not be earlier than 60 days after the day of the first publication of the notice in accordance with subsection (4)(a); and the Authority shall not determine the application until the Authority has considered any representations made to the Authority before the specified day.

(6)

The transferor shall furnish a copy of the report mentioned in subsection (4)(b)(iii) to any person having an interest in the transfer who asks for one at any time before the transfer is approved or refused by the Authority.

(7)

The Authority may, by notice in writing, require the transferor or the transferee to supply the Authority with such information as the Authority considers necessary to enable the Authority to determine an application.

(8)

The Authority shall not approve a transfer on application under subsection (1) unless the Authority is satisfied that—

(Amended 12 of 2015 s. 2)

(a)

every policy included in the transfer evidences a contract which—

(i)

was entered into before the date of the application; and

(ii)

imposes on the insurer obligations the performance of which will constitute the carrying on of insurance business in or from Hong Kong; and

(b)

the transferee is, or immediately after the approval will be, a person referred to in section 6(1)(a) to (c) carrying on in or from Hong Kong general business of the appropriate class or classes,

and unless in its opinion the transferee’s financial resources and the other circumstances of the case justify the giving of its approval.

(9)

On determining an application made under subsection (1), the Authority shall—

(Amended 12 of 2015 s. 2)

(a)

publish a notice of its decision in the Gazette and in such other manner as the Authority may think fit; and

(b)

send a copy of the notice to the transferor, the transferee and every person who has made representations in accordance with the notice referred to in subsection (4),

and if the Authority refuses the application, the Authority shall inform the transferor and the transferee in writing of the reasons for its refusal.

(10)

In this section

general policy

(

一般保單

) means a policy evidencing a contract the effecting of which constituted the carrying on of general business; and for the purposes of this section

affected policy holder

(

受影響的保單持有人

) means a policy holder—

(a)

whose policy is included in the transfer; or

(b)

whose policy is with the transferor and the Authority has notified the transferor, after consulting the transferor, that in its opinion the policy holder’s interest will or may be materially affected by the transfer.

(Amended 12 of 2015 s. 2)

25E.

Effect of approval under section 25D

(1)

Subject to subsection (2), an instrument giving effect to a transfer approved by the Authority under section 25D shall be effectual in law—

(Amended 12 of 2015 s. 2)

(a)

to transfer to the transferee all the transferor’s rights and obligations under the policies included in the instrument; and

(b)

if the instrument so provides, to secure the continuation by or against the transferee of any legal proceedings by or against the transferor which relate to those rights and obligations,

notwithstanding the absence of any agreements or consents which would otherwise be necessary for it to be effectual in law for those purposes.

(2)

Except insofar as the Authority may otherwise direct, a policy holder whose policy is included in such an instrument shall not be bound by it unless he has been given written notice of its execution by the transferor or the transferee.

(Amended 12 of 2015 s. 2)

25F.

Lloyd’s underwriters

(1)

Sections 25D and 25E shall apply in relation to a transfer to and from members of Lloyd’s if, and only if, the following conditions are satisfied—

(a)

the transfer is not one where both the transferor and the transferee are members of Lloyd’s;

(b)

the Committee of Lloyd’s have by resolution authorized one person to act in connection with the transfer for the members concerned as transferor or transferee; and

(c)

a copy of the resolution has been given to the Authority.

(2)

Where sections 25D and 25E apply in relation to a transfer to or from members of Lloyd’s, they shall apply as if—

(a)

reference to an insurer or authorized insurer in section 25D included reference to members of Lloyd’s; and

(b)

anything done in connection with the transfer by the person authorized in accordance with subsection (1)(b) had been done by members for whom he acted.

(Amended 12 of 2015 s. 2)

[cf. 1982 c. 50 ss. 51 & 52 U.K.]

Part V

Powers of Intervention

(Format changes—E.R. 4 of 2017)

26.

Grounds on which powers are exercisable

(1)

Subject to subsection (1A), any power conferred on the Authority by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35 is exercisable in relation to an authorized insurer on any of the following grounds—

(Amended 51 of 1992 s. 6; 12 of 2015 ss. 2 & 46; 20 of 2023 s. 48)

(a)

that the Authority considers the exercise of the power to be desirable for protecting policy holders or potential policy holders of the insurer against the risk that the insurer may be unable to meet its liabilities or to fulfil the reasonable expectations of policy holders or potential policy holders;

(b)

that it appears to the Authority—

(Amended 12 of 2015 s. 2)

(i)

that the insurer has failed to satisfy an obligation to which it is or was subject by virtue of this Ordinance or any Ordinance repealed by this Ordinance;

(ii)

that a body corporate of which it is a subsidiary has failed to satisfy an obligation to which it is or was subject by virtue of section 23(6) or any Ordinance repealed by this Ordinance;

(c)

that it appears to the Authority that the insurer has furnished misleading or inaccurate information to the Authority under or for the purposes of any provision of this Ordinance or any Ordinance repealed by this Ordinance;

(d)

that the Authority is not satisfied that adequate arrangements are in force or will be made for the reinsurance of risks against which persons are insured by the insurer in the course of carrying on business, being risks of a class in the case of which the Authority considers that such arrangements are required;

(e)

that there exists a ground on which the Authority would be prohibited by section 8(2) or (3)(a) or (b) or 8A(2) from authorizing the insurer if it were to make application in that behalf;

(Amended 17 of 2020 s. 15)

(f)

that it appears to the Authority that the circumstance described in section 35AA(1) or (3) exists.

(Added 25 of 1994 s. 11)

(1A)

The power conferred on the Authority by section 35(2) shall not be exercisable in relation to an authorized insurer except on the ground specified in subsection (1)(a).

(Added 51 of 1992 s. 6)

(2)

Any power mentioned in subsection (1) shall also be exercisable in relation to an authorized insurer on the ground that the Authority is not satisfied that the insurer is not to be deemed under section 42(1), for the purposes of section 177 or 327 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), to be unable to pay its debts.

(Amended 28 of 2012 ss. 912 & 920)

(3)

Subject to subsection (3A), any power conferred on the Authority by section 32, 32A, 33, 34 or 35(1) is also exercisable on the ground that the Authority considers the exercise of that power to be desirable in the general interests of persons who are or may become policy holders of an authorized insurer.

(Amended 8 of 1989 s. 5; 50 of 1992 s. 5; 51 of 1992 s. 6)

(3AA)

Subject to subsection (3A), any power conferred on the Authority by section 32, 32A, 33 or 34 is also exercisable in relation to an authorized insurer on the ground that the Authority is of the opinion that the exercise of the power is desirable for mitigating or controlling the risks posed to or by the business of the insurer.

(Added 20 of 2023 s. 48)

(3A)

No power referred to in subsection (3) or (3AA) is exercisable in relation to an authorized insurer on the ground specified in that subsection in such a way as to require the insurer to amend either—

(Amended 12 of 2015 s. 46; 20 of 2023 s. 48)

(a)

the wording of any policy or class of policies; or

(b)

the premiums payable in respect of any policy or class of policies.

(Added 50 of 1992 s. 5)

(4)

Any power conferred on the Authority by section 27, 28, 29, 30, 31, 32, 32A, 34(1) or 35(1) is also exercisable, whether or not any of the grounds specified in subsections (1), (2), (3) and (3AA) exists, in relation to—

(Amended 8 of 1989 s. 5; 51 of 1992 s. 6; 12 of 2015 s. 2; 20 of 2023 s. 48)

(a)

any insurer authorized to carry on any class of insurance business;

(b)

an authorized insurer in the case of which a person has, after the commencement of this Ordinance, become a controller within the meaning of section 9(1)(a)(iii),

(Amended 17 of 2020 s. 27)

if that power is exercised before the expiration of the period of 5 years (

the relevant period

) beginning on the latest date on which the insurer was so authorized or the date on which that person became such a controller, as the case may be; but no requirement imposed by virtue of this subsection may continue in force after the expiration of the period of 10 years from the beginning of the relevant period.

(5)

The Authority must not exercise any power conferred on the Authority by section 35 in respect of an authorized insurer unless, in its opinion, the exercise of the powers conferred on the Authority by sections 27, 28, 29, 30, 31, 32, 32A, 33 and 34, or the exercise of those powers alone, in respect of the insurer (and whether or not the Authority so exercises any of those powers) would not appropriately safeguard the interests of policy holders or potential policy holders of the insurer.

(Replaced 51 of 1992 s. 6)

(6)

The Authority must, when exercising any power conferred by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35, state the ground on which the Authority is exercising it or, if the Authority is exercising it by virtue of subsection (4), that the Authority is so exercising it; but this subsection does not apply where the Authority has given notice under section 36 or 37 of the proposed exercise of the power.

(7)

The grounds specified in subsections (1)(b), (c), (d) and (e), (2), (3) and (3AA) are without prejudice to the ground specified in subsection (1)(a).

(Amended 12 of 2015 ss. 2 & 46; 20 of 2023 s. 48)

27.

Restrictions on new business

(1)

The Authority may require an authorized insurer—

(Amended 12 of 2015 s. 2)

(a)

not to effect any contracts of insurance or contracts of insurance of a specified description;

(b)

not to vary any contracts of insurance of a specified description, being contracts effected in the course of carrying on insurance business and in force when the requirement is imposed.

(2)

A requirement under this section may apply to contracts of insurance whether or not the effecting of them falls within a class of insurance business which the insurer is for the time being authorized to carry on.

28.

Requirements about investments

(1)

The Authority may require an authorized insurer—

(Amended 12 of 2015 s. 2)

(a)

not to make investments of a specified class or description;

(b)

to realize, before the expiration of a specified period (or such longer period as the Authority may allow), the whole or a specified proportion of investments of a specified class or description held by the insurer when the requirement is imposed.

(Amended 12 of 2015 s. 2)

(2)

A requirement under this section may be framed so as to apply only to investments which are (or, if made, would be) assets representing a fund or sub-fund maintained by the insurer under section 21B or 25AA or so as to apply only to other investments.

(Amended 59 of 1993 s. 11; 20 of 2023 s. 49)

29.

Requirement to maintain assets in Hong Kong

(Amended 20 of 2023 s. 50)

(1)

The Authority may require that assets of an authorized insurer of a value which at any time is equal to the whole or a specified proportion of the amount of its domestic liabilities shall be maintained in Hong Kong, and, in imposing any such requirement, the Authority shall have regard to the insurer’s arrangements for the reinsurance of risks against which persons are insured by the insurer in the course of carrying on business.

(2)

The Authority may direct that for the purposes of any requirement under this section assets of a specified class or description shall or shall not be treated as assets maintained in Hong Kong.

(3)

The Authority may direct that for the purposes of any requirement under this section the domestic liabilities of an authorized insurer, or such liabilities of any class or description, shall be taken to be the net liabilities after deducting any part of them which is reinsured.

(4)

A requirement imposed under this section may be framed so as to come into effect immediately after the day on which it is imposed or so as to come into effect after the expiration of a specified period (or such longer period as the Authority may allow).

(5)

In this section any reference to a domestic liability of an authorized insurer is reference to a liability of the business carried on by the insurer in Hong Kong.

(6)-(7)

(Repealed 20 of 2023 s. 50)

(Amended 12 of 2015 s. 2)

30.

Custody of assets

(1)

The Authority may, in the case of an authorized insurer on which requirement has been imposed under section 29, impose an additional requirement that the whole or a specified proportion of the assets to which the requirement under that section applies shall be held by a person approved by the Authority for the purposes of the requirement under this section as trustee for the insurer.

(2)

Section 29(4) shall apply also to a requirement under this section.

(3)

Assets of an authorized insurer held by a person as trustee for an authorized insurer shall be taken to be held by such person in compliance with a requirement imposed under this section if, but only if, they are assets in whose case the insurer has given such person written notice that they are to be held by him in compliance with such a requirement or they are assets into which assets in whose case the insurer has given such person such written notice have, by any transaction or series of transactions, been transposed by him on the instructions of the insurer.

(4)

No assets held by a person as trustee for an authorized insurer in compliance with a requirement imposed under this section shall, so long as the requirement is in force, be released except with the consent of the Authority.

(5)

If a mortgage or charge is created by an authorized insurer at a time when there is in force a requirement imposed on the insurer by virtue of this section, being a mortgage or charge conferring a security on any assets which are held by a person as trustee for the insurer in compliance with the requirement, the mortgage or charge shall, to the extent that it confers such a security, be void against the liquidator and any creditor of the insurer.

(Amended 12 of 2015 s. 2)

31.

Limitation of premium income

(1)

The Authority may require an authorized insurer to take all such steps as are requisite to secure that the aggregate of the premiums—

(Amended 12 of 2015 s. 2)

(a)

to be received by the insurer in consideration of the undertaking by it during a specified period of liabilities in the course of carrying on general business or any specified part of such business; or

(b)

to be received by it in a specified period in consideration of the undertaking by the insurer during that period of liabilities in the course of carrying on long term business or any specified part of such business,

shall not exceed a specified amount.

(2)

A requirement under this section may apply either to the aggregate premiums to be received as mentioned in subsection (1) or to the aggregate of those premiums after deducting any premiums payable by the insurer for reinsuring the liabilities in consideration of which the first-mentioned premiums are receivable.

32.

Requirement to make actuarial investigations or reviews

(Amended 20 of 2023 s. 51)

(1)

The Authority may require an authorized insurer—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 51)

(a)

to cause its actuary appointed under section 15AAA(1) for its long term business to make an investigation into its financial condition (including a valuation of its liabilities) in respect of that business, or any specified part of that business, as at a specified date;

(b)

to cause the actuary’s report of the investigation to be made in the specified form; and

(c)

to prepare a statement of that business or of that part of that business as at that date in the specified form.

(Amended 20 of 2023 s. 51)

(1A)

The Authority may require an authorized insurer (other than an insurer that is exempted under the rules made under section 129(1)(cb))—

(a)

to cause its actuary appointed under section 15AAA(1) for its general business to conduct a review of the valuation of its insurance liabilities (as determined in accordance with the rules made under section 129) in respect of that business, or any specified part of that business, as at a specified date; and

(b)

to cause the actuary’s report of the review to be made in the specified form.

(Added 20 of 2023 s. 51)

(2)-(3)

(Repealed 20 of 2023 s. 51)

(4)

Any report or statement required to be made or prepared under subsection (1) or (1A) must be—

(a)

submitted by the insurer to the Authority on or before the date specified by the Authority; and

(b)

signed by the actuary who makes the investigation or conducts the review.

(Replaced 20 of 2023 s. 51)

(5)

In this section—

(a)

for an authorized insurer described in section 21B(4) or (7)—a reference to the insurer’s long term business is a reference to the insurer’s long term business carried on in or from Hong Kong; and

(b)

for an authorized insurer described in section 25AA(3) or (5)—a reference to the insurer’s general business is a reference to the insurer’s general business carried on in or from Hong Kong.

(Added 20 of 2023 s. 51)

32A.

Requirement to provide reports

(1)

The Authority may—

(a)

by a written notice served on an authorized insurer, require the insurer to, within the time specified in the notice, provide the Authority with a report in respect of any matter that relates to the insurer; or

(b)

appoint a person to provide the Authority with a report in respect of any matter that relates to an authorized insurer.

(2)

The Authority may, in a notice under subsection (1)(a), specify—

(a)

the form in which the report is to be prepared (including any verification or certification that may be required);

(b)

the way by which the report is to be provided; and

(c)

the skills that are to be possessed by the person who prepares the report.

(3)

The Authority may appoint under subsection (1)(b) any person who appears to the Authority to possess the skills necessary for providing a report in respect of the matter concerned.

(4)

If a person is appointed under subsection (1)(b), the Authority—

(a)

must, by a written notice served on the authorized insurer, notify the insurer of the appointment; and

(b)

may, in the notice, require the insurer to provide the person with any assistance as reasonably required by the person.

(5)

An authorized insurer must—

(a)

pay to a person appointed under subsection (1)(b) any fees reasonably charged by the person for providing the report; and

(b)

reimburse the Authority for—

(i)

any such fees paid by the Authority; and

(ii)

any incidental expenses incurred by the Authority in procuring the provision of the report.

(6)

Any fees and expenses required to be paid or reimbursed under subsection (5) are recoverable as a civil debt.

(Added 20 of 2023 s. 52)

33.

Acceleration of submission of information

(Amended 20 of 2023 s. 53)

(1)

Subject to subsection (1A), if an authorized insurer is required to submit to the Authority any statement, report or information on or before a date (original date) under a requirement prescribed by virtue of section 17, the Authority may require the statement, report or information to be submitted on or before a specified date before the original date.

(Replaced 20 of 2023 s. 53)

(1A)

The specified date under subsection (1)—

(a)

must be within 3 months before the original date; and

(b)

must not be earlier than 1 month after the date on which the Authority imposes the requirement under subsection (1).

(Added 20 of 2023 s. 53)

(2)

The Authority may require any statement which under section 19 is required to be furnished to the Authority by an authorized insurer within a period prescribed under that section to be furnished to the Authority on or before a specified date before the end of that period.

(Amended 12 of 2015 s. 2)

34.

Power to obtain information and require production of documents

(1)

The Authority may require an authorized insurer to furnish it, at specified times or intervals, with information about specified matters being, if the Authority so requires, information verified in a specified manner.

(2)

The Authority may—

(Amended 12 of 2015 s. 2)

(a)

require an authorized insurer to produce, at such time and place as the Authority may specify, such books or papers as the Authority may specify; or

(b)

authorize any person, on producing (if required so to do) evidence of his authority, to require an authorized insurer to produce to him forthwith any books or papers which that person may specify.

(3)

Where by virtue of subsection (2) the Authority or a person authorized by the Authority has power to require the production of any books or papers from an authorized insurer, the Authority or that person shall have the like power to require production of those books or papers from any person who appears to the Authority or the person authorized by the Authority to be in possession of them; but where any person from whom such production is required claims a lien on books or papers produced by him, the production shall be without prejudice to the lien.

(4)

Any power conferred by or by virtue of subsections (2) and (3) to require an authorized insurer or other person to produce books or papers shall include power—

(Amended 12 of 2015 s. 2)

(a)

if the books or papers are produced—

(i)

to take copies of them or extracts from them; and

(ii)

to require that person, or any other person who is a present or past director, controller, auditor or actuary of, or is or was at any time employed by, the insurer in question, to provide an explanation of any of them;

(b)

if the books or papers are not produced, to require the person who was required to produce them to state, to the best of his knowledge and belief, where they are.

(5)

(Repealed 12 of 2015 s. 47)

(6)

(Repealed 28 of 2012 ss. 912 & 920)

(Amended 12 of 2015 s. 2)

35.

Residual power to impose requirements, etc.

(1)

Subject to section 26(5), the Authority may require an authorized insurer to take such action in respect of its affairs, business or property as the Authority considers appropriate.

(2)

Without prejudice to subsection (1), but subject to section 26(1A) and (5) and subsections (3) and (4), the Authority—

(Amended 12 of 2015 s. 2)

(a)

may give a direction that, during the period for which the direction is in force, the authorized insurer specified in that direction shall seek advice on the management of its affairs, business and property from an Advisor, for which purpose the Authority shall appoint a person to be the Advisor of that insurer; or

(b)

may give a direction that, during the period for which the direction is in force, the affairs, business and property of the authorized insurer specified in that direction shall be managed by a Manager, for which purpose the Authority shall appoint a person to be the Manager of that insurer.

(3)

The Authority shall not give a direction under subsection (2) in respect of an authorized insurer in relation to which the Court of First Instance has—

(Amended 12 of 2015 s. 2)

(a)

made an order for the winding up of the insurer by the Court of First Instance;

(b)

made an order under section 45(1).

(Amended 25 of 1998 s. 2)

(4)

A direction given under subsection (2) in respect of an authorized insurer which is a non-Hong Kong company must, by virtue of this subsection, apply only to—

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2; 14 of 2025 s. 134)

(a)

so much of the affairs and business of the insurer as are carried on, or managed, in or from Hong Kong; and

(b)

so much of the property of the insurer as is located in, or managed from, Hong Kong.

(5)

A direction given under subsection (2) shall—

(a)

be in writing;

(b)

be served on the insurer specified in the direction;

(c)

take effect immediately it is so served; and

(d)

state the name and address of the Advisor or Manager, as the case may be, appointed in respect of that insurer.

(6)

Notice of a direction given under subsection (2)(b) shall be published by the Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public.

(7)

To avoid doubt, the exercise of any power conferred on the Authority by this section is without prejudice to the exercise of any of the powers conferred on the Authority by sections 27, 28, 29, 30, 31, 32, 32A, 33 and 34.

(Amended 20 of 2023 s. 54)

(Replaced 51 of 1992 s. 7. Amended 12 of 2015 s. 2)

35A.

Requirement under section 35(1) to make deposit

(1)

Without limiting the generality of section 35(1), a requirement imposed under that section on an authorized insurer may include a requirement that the insurer—

(Amended 51 of 1992 s. 8; 12 of 2015 s. 2)

(a)

shall make a deposit—

(i)

of an amount of money specified in that requirement;

(ii)

with a bank, or a bank belonging to a class of banks, specified in that requirement;

(iii)

in the name of the Authority as trustee for the insurer; and

(iv)

on a date not later than the date specified in that requirement;

(b)

shall place in the custody of the Authority, on a date not later than the date specified in that requirement, a receipt, or other document, that evidences, to the satisfaction of the Authority, that the deposit referred to in paragraph (a) has been made;

(c)

shall keep the deposit referred to in paragraph (a) free from any charge both on, and from, the day upon which that deposit is made; and

(d)

shall not—

(i)

take any action; or

(ii)

issue any instruction to any bank at which the deposit referred to in paragraph (a) is held from time to time,

which would result in the release of that deposit, or any part of that deposit, to the insurer or to any other person.

(2)

Nothing in subsection (1) shall prevent an authorized insurer from using, in such manner as it thinks fit, any interest earned on a deposit made under that subsection by the insurer.

(3)

If a charge is created or purported to be created by an authorized insurer at a time when there is in force a requirement under subsection (1), the charge shall, to the extent that it is a charge or purports to be a charge on the deposit referred to in subsection (1)(a) to which the requirement relates, be void against all persons.

(4)

For the purposes of this section—

charge

(

押記

) includes lien, encumbrance, equitable interest and third party rights;

deposit

(

存款

) includes a renewal of a deposit.

(Added 74 of 1985 s. 2. Amended 12 of 2015 s. 2)

35AA.

Restoration plan or financial scheme

(1)

Subsection (2) applies if the Authority is of the opinion that the amount of capital of an authorized insurer, as determined in accordance with the rules made under section 129—

(a)

is less than the prescribed capital amount for the insurer; or

(b)

is at risk of becoming less than the prescribed capital amount for the insurer.

(2)

The Authority may, by a written notice served on the insurer, require the insurer—

(a)

to submit, by a date specified by the Authority, to the Authority a plan for restoring the insurer to a sound financial position and—

(i)

for subsection (1)(a)—enabling the amount of capital of the insurer to be not less than the prescribed capital amount for the insurer; or

(ii)

for subsection (1)(b)—preventing the amount of capital of the insurer from becoming less than the prescribed capital amount for the insurer;

(b)

if the insurer has submitted a plan under paragraph (a), to propose modifications to the plan to the satisfaction of the Authority if the Authority considers it inadequate; and

(c)

to give effect to any such plan accepted by the Authority as adequate.

(3)

Subsection (4) applies if the Authority is of the opinion that the amount of capital of an authorized insurer, as determined in accordance with the rules made under section 129—

(a)

is less than the minimum capital amount for the insurer; or

(b)

is at risk of becoming less than the minimum capital amount for the insurer.

(4)

The Authority may, by a written notice served on the insurer, require the insurer—

(a)

to submit, by a date specified by the Authority, to the Authority a short term financial scheme that—

(i)

for subsection (3)(a)—enables the amount of capital of the insurer to be not less than the minimum capital amount for the insurer; or

(ii)

for subsection (3)(b)—prevents the amount of capital of the insurer from becoming less than the minimum capital amount for the insurer;

(b)

if the insurer has submitted a scheme under paragraph (a), to propose modifications to the scheme to the satisfaction of the Authority if the Authority considers it inadequate; and

(c)

to give effect to any such scheme accepted by the Authority as adequate.

(Replaced 20 of 2023 s. 55)

35B.

Accounts

(1)

The Authority shall cause proper accounts to be kept of all transactions concerning deposits referred to in section 35A(1) and shall cause to be prepared for every financial year a statement of such accounts, which statement shall be signed by the Authority.

(Amended 12 of 2015 s. 2)

(2)-(3)

(Repealed 12 of 2015 s. 49)

(Added 74 of 1985 s. 2)

36.

Notice of proposed exercise of power under section 27

(1)

Before exercising with respect to an authorized insurer the power conferred by section 27 the Authority shall serve on the insurer a written notice stating—

(Amended 12 of 2015 s. 2)

(a)

that the Authority is considering exercising that power and the ground on which the Authority is considering the exercise of the power; and

(b)

that the insurer may, within the period of 1 month from the date of service of the notice, make written representations to the Authority and, if the insurer so requests, oral representations to a person appointed for the purpose by the Authority.

(Amended 12 of 2015 s. 50)

(2)

This section shall not apply if the ground on which the Authority proposes to exercise the power relates (as provided in section 26(1)(e)) to the fitness of any person to hold the position of director or controller of the insurer.

(3)

A notice under this section shall give particulars of the ground on which the Authority is considering the exercise of the power except that no particulars need be given if the ground is that mentioned in section 26(2).

(4)

Where representations are made in accordance with this section the Authority shall take them into consideration before exercising the power.

(Amended 12 of 2015 s. 2)

37.

Notice of proposed exercise of powers on ground of unfitness

(1)

Before exercising with respect to an authorized insurer any power or powers conferred by sections 27, 28, 29, 30, 31, 32, 32A, 33, 34 and 35 on the ground (as provided in section 26(1)(e)) that any person who is a director or controller of the insurer is not a fit and proper person to hold the position held by the person, the Authority must serve on that person a written notice stating—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 56)

(a)

that the Authority is considering exercising a power or powers conferred by those sections and the ground on which the Authority is considering the exercise of the power or powers; and

(b)

that the person on whom the notice is served may, within the period of 1 month from the date of service of the notice, make written representations to the Authority and, if that person so requests, oral representations to a person appointed for the purpose by the Authority.

(Amended 12 of 2015 s. 51)

(2)

Unless the Authority, after considering any representations made in accordance with subsection (1) by the person served with a notice under that subsection, decides not to exercise the power or powers in relation to which the notice was served, the Authority shall before exercising the power or powers serve on the insurer a written notice—

(Amended 12 of 2015 s. 2)

(a)

containing the matters mentioned in subsection (1)(a) and (b), taking references to the person there mentioned as references to the insurer; and

(b)

specifying the power or powers which the Authority proposes to exercise and, if the power or one of them is that conferred by section 35, specifying the manner of its proposed exercise.

(3)

A notice under this section shall give particulars of the ground on which the Authority is considering the exercise of the power or powers in question.

(4)

Where representations are made in accordance with this section the Authority shall take them into consideration before exercising the power or powers in question.

(5)

A requirement imposed on an authorized insurer in the exercise of any power or powers to which this section applies may be framed so as to come into effect after the expiration of a specified period (or such longer period as the Authority may allow) unless before the expiration of that period the person whose fitness is in question has ceased to hold the position concerned.

(6)

This section does not apply, as respects an authorized insurer, in relation to the exercise of any power conferred by section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35 where it is exercised by the Authority—

(Amended 12 of 2015 ss. 2 & 51; 20 of 2023 s. 56)

(a)

after serving a notice under section 13A(5) on the insurer rejecting the application for the approval of the appointment of an individual as a controller of the insurer, and despite the notice, the individual is appointed as a controller of the insurer;

(Replaced 12 of 2015 s. 51)

(b)

after serving a notice under section 13A(7) on the insurer revoking the approval of the appointment of an individual as a controller of the insurer, and despite the notice, the individual continues to act as a controller of the insurer;

(Replaced 12 of 2015 s. 51)

(c)

after serving a notice under section 13AC(5) on the insurer rejecting the application for the approval of the appointment of a person as a director of the insurer, and despite the notice, the person is appointed as a director of the insurer;

(Replaced 12 of 2015 s. 51)

(d)

after serving a notice under section 13AC(7) on the insurer revoking the approval of the appointment of a person as a director of the insurer, and despite the notice, the person continues to act as a director of the insurer; or

(Added 12 of 2015 s. 51)

(e)

after serving a notice under section 14(4) on the insurer, and despite the notice, the person continues to act as a controller or director.

(Added 12 of 2015 s. 51)

(7)

For the purposes of subsection (6), this section does not apply even if—

(a)

the insurer or the individual or person concerned has applied to the Tribunal under section 100 for a review of the decision of the Authority to serve the notice; and

(b)

the Tribunal has not determined the review of the decision.

(Added 12 of 2015 s. 51)

(Amended 12 of 2015 s. 2)

38.

Rescission, variation and publication of requirements

(1)

The Authority may rescind a requirement imposed under section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35(1) if it appears to the Authority that it is no longer necessary for the requirement to continue in force, and may from time to time vary any such requirement.

(Amended 51 of 1992 s. 9; 12 of 2015 s. 2; 20 of 2023 s. 57)

(2)

No requirement imposed by virtue of section 26(4) shall be varied after the expiration of the relevant period mentioned therein except in a manner which relaxes that requirement.

(3)

A rescission under subsection (1) of a requirement imposed under section 27 may be limited so as to apply only to contracts of a specified description.

(4)

Notice of the imposition of a requirement under the said section 27 and of the rescission or variation of any such requirement shall be published by the Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public.

(Amended 12 of 2015 s. 2)

38A.

Effect of direction given under section 35(2)(b)

(1)

Subject to section 38B(3)(a), immediately upon a direction given under section 35(2)(b) coming into force—

(a)

in respect of an HK insurer, any appointment of a person as a chief executive or director of the insurer which was in force immediately before that direction came into force;

(b)

in respect of a non-HK insurer, any appointment of a person as a controller (within the meaning of paragraph (a)(ii) of the definition of controller in section 13A(12)) of the insurer which was in force immediately before that direction came into force,

(Amended 12 of 2015 ss. 2 & 52)

is deemed to be revoked and, accordingly, that person must not act or continue to act as such chief executive, director or controller, as the case may be, during the period for which that direction is in force.

(Amended 20 of 2023 s. 58)

(2)

An authorized insurer is not required to give any notice to the Authority pursuant to section 14(1) or (2), and a person is not required to give any notice to an authorized insurer pursuant to section 14(3), as a consequence of the operation of subsection (1).

(Amended 12 of 2015 s. 2)

(3)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized insurer—

(Amended 12 of 2015 s. 2)

(a)

no meeting of the insurer may be held except with the consent, and in the presence, of the Manager of the insurer;

(b)

no resolution may be passed at a meeting of the insurer except with the consent of the Manager of the insurer.

(4)

It is hereby declared that—

(a)

any resolution passed, or purporting to have been passed, in contravention of subsection (3)(b);

(b)

any thing done in reliance on any such resolution,

shall be invalid by reason of that contravention.

(5)

Where any member or director of an authorized insurer requests the Manager of the insurer to give a consent referred to in subsection (3)(a), the Manager shall not unreasonably refuse to give that consent.

(Amended 12 of 2015 s. 2)

(6)

In this section,

meeting

(

會議

), in relation to an authorized insurer, means—

(Amended 12 of 2015 s. 2)

(a)

any general meeting of the members of the insurer; or

(b)

any meeting of the directors of the insurer.

(Added 51 of 1992 s. 10)

38B.

Powers of Manager

(1)

The Manager of an authorized insurer—

(Amended 12 of 2015 s. 2)

(a)

may do all such things as may be necessary for the management of the affairs, business and property of the insurer; and

(b)

without prejudice to the generality of paragraph (a), shall have, and may exercise, in respect of that insurer, all the powers specified in Schedule 7.

(Amended 12 of 2015 s. 53)

(2)

The Manager of an authorized insurer may require any person who—

(Amended 12 of 2015 s. 2)

(a)

has ceased to be a chief executive, director or controller (within the meaning of paragraph (a)(ii) of the definition of controller in section 13A(12)) of the insurer as a consequence of the operation of section 38A(1); or

(Amended 12 of 2015 s. 53)

(b)

is a controller of the insurer,

to submit such information in relation to the affairs, business and property of the insurer as the Manager may reasonably require for the performance of his functions or the exercise of his powers in respect of the insurer, and such information shall be submitted within such period and in such manner as the Manager may require.

(3)

The Manager of an authorized insurer may—

(Amended 12 of 2015 s. 2)

(a)

with the approval of the Authority—

(Amended 12 of 2015 s. 2)

(i)

if the insurer is an HK insurer—appoint any person (including a person referred to in section 38A(1)(a)) to be a chief executive or director of the insurer, whether to fill a vacancy arising from the operation of section 38A(1)(a) or otherwise;

(ii)

if the insurer is a non-HK insurer—appoint any person (including a person referred to in section 38A(1)(b)) to be a controller (within the meaning of paragraph (a)(ii) of the definition of controller in section 13A(12)) of the insurer, whether to fill a vacancy arising from the operation of section 38A(1)(b) or otherwise;

(Amended 12 of 2015 s. 53)

(iii)

revoke any appointment made pursuant to subparagraph (i) or (ii);

(Amended 20 of 2023 s. 59)

(b)

call any meeting of the members, directors or creditors of the insurer.

(4)

Neither section 13A(1) nor section 14(4) shall apply to any appointment made pursuant to subsection (3)(a)(i) or (ii).

(Amended 12 of 2015 s. 53)

(5)

An authorized insurer is not required to give any notice to the Authority pursuant to section 14(1) or (2), and a person is not required to give any notice to an authorized insurer pursuant to section 14(3), as a consequence of any appointment, or the revocation of any appointment, made pursuant to subsection (3)(a).

(Amended 12 of 2015 s. 2)

(6)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized insurer, any power conferred on the insurer or its officers or members, whether by this Ordinance , the Companies Ordinance (Cap. 622) or the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), or by the memorandum or articles of association, which could be exercised in such a way as to interfere with the exercise by the Manager of the insurer of his powers is not exercisable except with the consent of the Manager, which consent may be given either generally or in any particular case.

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

(7)

In exercising his powers the Manager of an authorized insurer shall be deemed to act as the insurer’s agent and, in relation thereto, section 9 of the Prevention of Bribery Ordinance (Cap. 201) shall apply to—

(Amended 12 of 2015 s. 2)

(a)

the Manager acting as such agent; and

(b)

any person who offers an advantage, within the meaning of that Ordinance, to the Manager acting as such agent,

as if subsections (4) and (5) of that section were omitted.

(8)

A person dealing with the Manager of an authorized insurer in good faith and for value is not concerned to inquire whether the Manager is acting within his powers.

(Amended 12 of 2015 s. 2)

(Added 51 of 1992 s. 10)

38C.

Court of First Instance may approve certain resolutions

(1)

During the period for which a direction given under section 35(2)(b) is in force in respect of an authorized insurer, the Court of First Instance may, on the application of the Manager or any member of the insurer, approve or refuse to approve any resolution referred to in section 38A(3)(b) which has been properly moved at a meeting of the insurer but which has not, for whatever reason, been passed.

(Amended 25 of 1998 s. 2)

(2)

On the hearing of an application under subsection (1)—

(a)

the Authority; and

(b)

the Manager and any member of the insurer concerned (and whether or not the Manager or any such member is the applicant),

shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if the Authority, the Manager or the member of the insurer so thinks fit, support or oppose the making of the application.

(Amended 12 of 2015 s. 2)

(3)

In this section,

meeting

(

會議

), in relation to an authorized insurer, means any general meeting of the members of the insurer.

(Added 51 of 1992 s. 10. Amended 12 of 2015 s. 2)

38D.

Duration of direction given under section 35(2)

(1)

The Authority shall revoke a direction given under section 35(2) if—

(Amended 12 of 2015 s. 2)

(a)

it appears to the Authority that it is no longer necessary for the direction to remain in force; or

(Amended 12 of 2015 s. 2)

(b)

it is necessary to do so to give effect to a determination of the Tribunal in a review of the Authority’s direction.

(Amended 12 of 2015 s. 54)

(2)

(Repealed 12 of 2015 s. 54)

(3)

The revocation under subsection (1) of a direction given under section 35(2) shall—

(a)

be in writing;

(b)

be served on—

(i)

the authorized insurer specified in the direction; and

(Amended 12 of 2015 s. 2)

(ii)

the Advisor or Manager, as the case may be, of that insurer; and

(c)

take effect immediately it is so served.

(4)

Notice of a revocation under this section of a direction given under section 35(2)(b) shall be published by the Authority in the Gazette and in such other ways as appear to the Authority expedient for notifying the public.

(Amended 12 of 2015 s. 2)

(5)

A revocation in writing under subsection (1) of a direction given under section 35(2) includes a copy of the revocation.

(6)

For the avoidance of doubt, it is hereby declared that the revocation under subsection (1) of a direction given under section 35(2)(b) shall not revive any appointment deemed to be revoked as a consequence of the operation of section 38A(1).

(Added 51 of 1992 s. 10)

38E.

Advisors and Managers

(1)

An Advisor or Manager may at any time by notice in writing to the Authority resign his office, but any such resignation shall not take effect unless and until it is accepted by the Authority.

(Amended 12 of 2015 s. 2)

(2)

The Authority may at any time revoke the appointment of an Advisor or Manager.

(Amended 12 of 2015 s. 2)

(3)

Where the office of an Advisor or Manager becomes vacant pursuant to subsection (1) or (2) or due to the death of the holder of that office, the Authority shall forthwith—

(Amended 12 of 2015 s. 2)

(a)

appoint a person to fill the vacancy; and

(b)

serve on the authorized insurer concerned a notice in writing specifying the name and address of the person so appointed.

(Amended 12 of 2015 s. 2)

(4)

The appointment of an Advisor or Manager shall be deemed to be revoked immediately upon the revocation under section 38D(1) of the direction given under section 35(2) by virtue of which he holds his office.

(5)

The Authority may at any time determine the remuneration and expenses to be paid by an authorized insurer to an Advisor or Manager appointed in respect of the insurer.

(Amended 12 of 2015 s. 2)

(6)

Where the Authority has made a determination under subsection (5), the Authority shall—

(Amended 12 of 2015 s. 2)

(a)

publish a notice in the Gazette stating—

(i)

that the determination has been made; and

(ii)

the name of the insurer to which the determination relates; and

(b)

provide a copy of the determination to any member of that insurer who so requests.

(7)

Any remuneration and expenses required by a determination under subsection (5) to be paid by an authorized insurer to an Advisor or Manager—

(Amended 12 of 2015 s. 2)

(a)

is recoverable by the Advisor or Manager, as the case may be, as a civil debt;

(b)

shall, in any winding up of the insurer under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32)—

(Amended 28 of 2012 ss. 912 & 920 ; Amended 12 of 2015 s. 2)

(i)

in the case of a voluntary winding up, have the same priority as is given under section 256 of that Ordinance to the remuneration of a liquidator;

(ii)

in the case of a winding up by the Court of First Instance, have the same priority as is given under rule 179(1) of the Companies (Winding-up) Rules (Cap. 32 sub. leg. H) to any costs, charges and expenses incurred by the Official Receiver.

(Amended 25 of 1998 s. 2)

(8)

(Repealed 12 of 2015 s. 55)

(9)

In subsections (5) and (7)—

Advisor

(

顧問

) includes a former Advisor;

Manager

(

經理

) includes a former Manager.

(Added 51 of 1992 s. 10)

39.

(Repealed 28 of 2012 ss. 912 & 920)

40.

Withdrawal of authorization

(1)

Where an authorized insurer ceases to carry on—

(a)

any insurance business;

(b)

insurance business of any class; or

(c)

insurance business which is part of any class,

the Authority may direct that it shall cease to be authorized to carry on—

(Amended 12 of 2015 s. 2)

(i)

insurance business;

(ii)

insurance business of that class; or

(iii)

insurance business which is that part of that class,

as the case may be.

(Replaced 34 of 1988 s. 5)

(2)

Where an insurer authorized to carry on insurance business of any class has not at any time carried on insurance business—

(a)

of that class; or

(b)

which is part of that class,

in or from Hong Kong, and at least 12 months have elapsed since the date of authorization, the Authority may direct that it shall cease to be authorized to carry on insurance business—

(i)

of that class; or

(ii)

which is that part of that class,

as the case may be.

(Replaced 34 of 1988 s. 5)

(3)

A direction under this section is without prejudice to a subsequent authorization to carry on insurance business of a class to which the direction relates.

(4)

Where an authorized insurer ceases to be authorized to carry on insurance business, the Authority may direct that any matters recorded in respect of that insurer in the register kept under section 5H shall be erased.

(Amended 12 of 2015 s. 56)

(5)

Where an authorized insurer ceases to be authorized to carry on insurance business of any class, the Authority may direct that any matters recorded in respect of that insurer in relation to that class in the register kept under section 5H shall be erased.

(Added 34 of 1988 s. 5. Amended 12 of 2015 s. 56)

(Amended 12 of 2015 s. 2)

41.

Offences under Part V

(1)

Any person who—

(a)

makes default in complying with any requirement imposed under section 27, 28, 29, 30, 31, 32, 32A, 33, 34, 35(1) or 35AA;

(Amended 51 of 1992 s. 11; 25 of 1994 s. 15; 20 of 2023 s. 60)

(b)

(Repealed 12 of 2015 s. 57)

(c)

acts or continues to act as a chief executive, director or controller of an authorized insurer in contravention of section 38A(1);

(Added 51 of 1992 s. 11. Amended 12 of 2015 s. 57)

(d)

fails without reasonable excuse to comply with any requirement under section 38B(2); or

(Added 51 of 1992 s. 11)

(e)

wilfully obstructs, resists or delays—

(i)

the Manager of an authorized insurer in the lawful performance of his functions, or the lawful exercise of his powers, in respect of the insurer; or

(Amended 12 of 2015 s. 57)

(ii)

any other person lawfully assisting the Manager in such performance of such functions or such exercise of such powers,

(Added 51 of 1992 s. 11)

commits an offence and is liable to—

(i)

a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years; and

(Amended 35 of 1996 s. 23)

(ii)

in the case of an offence under paragraph (a), a fine of $1,000 for each day on which the offence continues.

(Amended 35 of 1996 s. 23)

(1A)

A person commits an offence if the person, in purported compliance with a requirement imposed under section 34—

(a)

furnishes any information, or produces any document, that the person knows to be false or misleading in a material particular; or

(b)

recklessly furnishes any information, or produces any document, that is false or misleading in a material particular.

(Replaced 20 of 2023 s. 60)

(1B)

A person who commits an offence under subsection (1A) is liable—

(a)

on conviction on indictment—to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction—to a fine at level 6 and to imprisonment for 6 months.

(Added 20 of 2023 s. 60)

(2)

Where a person is charged with an offence under subsection (1)(a) in respect of his default in complying with a requirement imposed under section 34(2) or (3) to produce any books or papers, it shall be a defence to prove that they were not in his possession or control and that it was not reasonably practicable for him to comply with the requirement.

Part VA

Further Regulatory Powers on Insurers

(Part VA added 12 of 2015 s. 58)

Division 1

Preliminary

41A.

Interpretation

In this Part—

business record

(

業務紀錄

), in relation to an insurer, means a record or document relating to—

(a)

the business conducted by the insurer; or

(b)

a transaction or activity that was undertaken in the course of, or may affect, the business conducted by the insurer;

inspector

(

查察員

) means a person appointed as an inspector under section 41B(6);

investigator

(

調查員

) means a person directed or appointed by the Authority under section 41D(1) to investigate any matter.

Division 2

Inspection and Investigation without Warrant

41B.

Power to conduct inspection

(1)

An inspector may exercise the powers under subsections (2) and (3) for ascertaining whether an authorized insurer is complying with, has complied with, or is likely to be able to comply with—

(a)

a provision of this Ordinance;

(b)

a notice or requirement given or imposed under a provision of this Ordinance;

(c)

a term or condition of an authorization granted under section 8 or 8A; or

(Amended 17 of 2020 s. 16)

(d)

any other condition imposed under a provision of this Ordinance.

(2)

At any reasonable time, an inspector—

(a)

may enter any premises used by the authorized insurer in connection with its business;

(b)

may inspect, and may make copies or otherwise record details of, a business record of the insurer; and

(c)

may make inquiries of the insurer or a person specified in subsection (5)—

(i)

concerning a business record of the insurer; or

(ii)

concerning a transaction or activity that was undertaken in the course of, or may affect, the business conducted by the insurer.

(3)

In exercising a power under subsection (2)(b) or (c), the inspector may require the authorized insurer, or a person specified in subsection (5)—

(a)

to give the inspector access to a business record of the insurer;

(b)

to produce to the inspector, within the time and at the place specified in the requirement, a business record of the insurer; and

(c)

to answer a question concerning—

(i)

a business record of the insurer; or

(ii)

a transaction or activity that was undertaken in the course of, or may affect, the business conducted by the insurer.

(4)

The power under subsection (2)(c) or (3) is not exercisable in relation to a person specified in subsection (5) unless the inspector has reasonable cause to believe that the information or record being sought cannot be obtained by exercising the power in relation to the authorized insurer.

(5)

The person specified for subsections (2)(c) and (3) is a person whom the inspector has reasonable cause to believe has information relating to, or is in possession of, a business record of the authorized insurer.

(6)

The Authority may in writing appoint a person, or a person belonging to a class of persons, as an inspector for the purposes of this section.

(7)

The Authority must provide an inspector with a copy of its appointment.

(8)

When imposing a requirement on a person under subsection (3), an inspector must, if so requested, produce a copy of the appointment to that person for inspection as soon as practicable.

41C.

Inspector may require answer, etc. to be verified by statutory declaration

(1)

If a person gives an answer in compliance with a requirement imposed under section 41B(2)(c) or (3), the inspector may, in writing, require the person to verify, within the time specified in the requirement, the answer by a statutory declaration.

(2)

If a person does not give an answer in compliance with a requirement imposed under section 41B(2)(c) or (3) for the reason that the information concerned was not within the person’s knowledge or possession, the inspector may, in writing, require the person to verify, within the time specified in the requirement, by a statutory declaration, that the person did not comply with the requirement for that reason.

(3)

A statutory declaration under subsection (1) or (2) may be made before the inspector and, for that purpose, the inspector is to have full power to administer the statutory declaration.

41D.

Power to conduct investigation

(1)

If—

(a)

the Authority has reasonable cause to believe that a provision of this Ordinance may have been contravened;

(b)

the Authority has reasonable cause to believe that a person may have been involved in defalcation, fraud, misfeasance or other misconduct in relation to the carrying on of insurance business;

(c)

the Authority has reasonable cause to believe that a person has carried on, or is carrying on, insurance business in a manner that is not in the interests of policy holders or potential policy holders or the public interest; or

(d)

the Authority, for considering whether to exercise any power under section 41P, has reason to enquire if—

(i)

a person is, or was, guilty of misconduct as defined by section 41P; or

(ii)

a person is, or was, not a fit and proper person as described in section 41P(1)(c),

the Authority may in writing direct one or more of its employees, or, with the consent of the Financial Secretary, appoint one or more other persons, to investigate the matter.

(2)

The costs and expenses incurred by an investigator, other than an employee of the Authority, may be paid out of moneys provided by the Legislative Council.

(3)

The Authority must provide an investigator with a copy of its direction or appointment.

(4)

Before first imposing a requirement on a person under subsection (5), an investigator must produce a copy of the direction or appointment to that person for inspection.

(5)

An investigator may require a person specified in subsection (6)—

(a)

to produce, within the time and at the place the investigator requires in writing, a record or document specified by the investigator that—

(i)

is or may be relevant to the investigation; and

(ii)

is in the person’s possession;

(b)

to give an explanation or further particulars in respect of a record or document produced;

(c)

to attend before the investigator at the time and place the investigator requires in writing, and answer a question relating to any matter under investigation that may be raised by the investigator;

(d)

to answer in writing, within the time the investigator requires in writing, a written question relating to any matter under investigation that may be raised by the investigator; and

(e)

to give the investigator all other assistance in connection with the investigation that the person is able to give.

(6)

The person specified for subsection (5) is—

(a)

a person who is relevant to the matter that an investigator is directed or appointed to investigate; or

(b)

a person whom an investigator has reasonable cause to believe—

(i)

to be in possession of a record or document that contains, or is likely to contain, information relevant to the investigation; or

(ii)

to be otherwise in possession of such information.

41E.

Investigator may require explanation, etc. to be verified by statutory declaration

(1)

If a person gives any explanation, particulars or answer in compliance with a requirement imposed under section 41D(5), the investigator may, in writing, require the person to verify, within the time specified in the requirement, the explanation, particulars or answer by a statutory declaration.

(2)

If a person does not give any explanation, particulars or answer in compliance with a requirement imposed under section 41D(5) for the reason that the information concerned was not within the person’s knowledge or possession, the investigator may, in writing, require the person to verify, within the time specified in the requirement, by a statutory declaration, that the person did not comply with the requirement for that reason.

(3)

A statutory declaration under subsection (1) or (2) may be made before the investigator and, for that purpose, the investigator is to have full power to administer the statutory declaration.

41F.

Application to Court of First Instance for inquiry into failure

(1)

If a person fails to comply with a requirement imposed by an inspector under section 41B or 41C or an investigator under section 41D or 41E, the inspector or investigator may apply by originating summons to the Court of First Instance for an inquiry into the failure.

(2)

On an application under subsection (1), the Court of First Instance—

(a)

on being satisfied that there is no reasonable excuse for the person not to comply with the requirement, may order the person to comply with the requirement within the time specified by the Court; and

(b)

on being satisfied that the failure was without reasonable excuse, may punish the person, and any other person knowingly involved in the failure, in the same manner as if the person and that other person had been guilty of contempt of court.

(3)

An originating summons under subsection (1) is to be in Form No. 10 in Appendix A to the Rules of the High Court (Cap. 4 sub. leg. A).

(4)

Despite anything in this Ordinance, no proceedings may be instituted against a person for subsection (2)(b) in respect of a conduct if—

(a)

criminal proceedings have previously been instituted against the person under section 41G(1), (2), (3), (4) or (5) in respect of the same conduct; and

(b)

those proceedings remain pending, or because of the previous institution of those proceedings, no criminal proceedings may again be lawfully instituted against that person under section 41G(1), (2), (3), (4) or (5) in respect of the same conduct.

41G.

Offences in relation to inspections and investigations

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a specified requirement imposed on the person.

(2)

A person commits an offence if the person, with intent to defraud, fails to comply with a specified requirement imposed on the person.

(3)

A person commits an offence if—

(a)

in purported compliance with a specified requirement imposed on the person, the person produces a record or document, gives an answer, or gives any explanation or particulars, that are false or misleading in a material particular; and

(b)

the person knows that, or is reckless as to whether, the record or document, the answer, or the explanation or particulars, are false or misleading in the material particular.

(4)

A person commits an offence if, in purported compliance with a specified requirement imposed on the person, the person, with intent to defraud, produces a record or document, gives an answer, or gives any explanation or particulars, that are false or misleading in a material particular.

(5)

A person commits an offence if the person, with intent to defraud—

(a)

causes or allows another person to fail to comply with a specified requirement imposed on that other person; or

(b)

causes or allows that other person, in purported compliance with a specified requirement imposed on that other person, to produce a record or document, to give an answer, or to give any explanation or particulars, that are false or misleading in a material particular.

(6)

A person is not excused from complying with a requirement imposed on the person under section 41D(5) or 41E(1) only on the ground that to do so might tend to incriminate the person.

(7)

Despite anything in this Ordinance, no criminal proceedings may be instituted against a person under subsection (1), (2), (3), (4) or (5) in respect of a conduct if—

(a)

proceedings have previously been instituted against the person under section 41F(2)(b) in respect of the same conduct; and

(b)

those proceedings remain pending, or because of the previous institution of those proceedings, no proceedings may again be lawfully instituted against that person under section 41F(2)(b) in respect of the same conduct.

(8)

A person who commits an offence under subsection (1) is liable—

(a)

on conviction on indictment to a fine of $200,000 and to imprisonment for 1 year; or

(b)

on summary conviction to a fine at level 5 and to imprisonment for 6 months.

(9)

A person who commits an offence under subsection (3) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(10)

A person who commits an offence under subsection (2), (4) or (5) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 7 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(11)

In this section—

specified requirement

(

指明要求

) means a requirement imposed under section 41B(3), 41C(1) or (2), 41D(5) or 41E(1) or (2).

41H.

Use of incriminating evidence in proceedings

(1)

If an investigator requires a person to give an answer to a question or to give an explanation or further particulars under this Part, the investigator must ensure that the person has first been informed of the effect of subsection (2).

(2)

Despite anything in this Ordinance and subject to subsection (3)—

(a)

if an investigator requires a person to give an answer to a question or to give an explanation or further particulars under this Part; and

(b)

the answer, or the explanation or further particulars, might tend to incriminate the person and the person so claims before giving the answer or giving the explanation or further particulars,

the requirement and the question and answer, or the explanation or further particulars, are not admissible in evidence against the person in criminal proceedings in a court of law.

(3)

Subsection (2) does not apply to criminal proceedings in which the person is, in relation to the answer, or the explanation or further particulars, charged with—

(a)

an offence under section 41G(1), (2), (3), (4) or (5), or under Part V of the Crimes Ordinance (Cap. 200); or

(b)

perjury.

41I.

Offences in relation to destruction of records and documents

(1)

A person commits an offence if—

(a)

the person destroys, falsifies, conceals or otherwise disposes of, or causes or permits the destruction, falsification, concealment or disposal of, a record or document that the person is required by an inspector or investigator to produce under section 41B or 41D; and

(b)

the person does so with intent to conceal, from the inspector or investigator, facts or matters capable of being disclosed by the record or document.

(2)

A person who commits an offence under subsection (1) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

41J.

Order to pay costs of investigation

(1)

If a person is convicted by a court on a prosecution instituted as a result of the findings of an investigation under section 41D—

(a)

the court may order the person to pay to the Authority the whole or a part of the costs and expenses of the investigation; and

(b)

the Authority may recover the whole or that part of the costs and expenses as a civil debt due to it.

(2)

Subsection (3) applies if—

(a)

the Authority receives an amount under an order made under subsection (1) in respect of any of the costs and expenses of an investigation; and

(b)

all or any of the costs and expenses have already been paid out of moneys provided by the Legislative Council.

(3)

The Authority must pay to the Financial Secretary the amount received under the order to the extent to which it has already been paid out of moneys provided by the Legislative Council.

Division 3

Magistrate’s Warrants

41K.

Magistrate’s warrants to enter premises, etc.

(1)

This section applies if a magistrate is satisfied on information on oath laid by a person specified in subsection (3) that there are reasonable grounds to suspect that there is, or is likely to be, on premises specified in the information a record or document that may be required to be produced under section 41B or 41D.

(2)

If this section applies, the magistrate may issue a warrant authorizing a person mentioned in the warrant, and other persons who may be necessary to assist in the execution of the warrant—

(a)

to enter the premises, if necessary by force, at any time within the period of 7 days beginning on the date of the warrant; and

(b)

to search for, seize and remove a record or document that the person mentioned in the warrant has reasonable cause to believe may be required to be produced under section 41B or 41D.

(3)

The person specified for subsection (1) is—

(a)

in relation to a record or document that may be required to be produced under section 41B—an inspector; or

(b)

in relation to a record or document that may be required to be produced under section 41D—an investigator.

(4)

If an authorized person has reasonable cause to believe that a person found on the premises is employed, or engaged to provide a service, in connection with a business that is or has been conducted on the premises, the authorized person may require that person to produce for examination a record or document that—

(a)

is in the possession of that person; and

(b)

the authorized person has reasonable cause to believe may be required to be produced under section 41B or 41D.

(5)

An authorized person may, in relation to a record or document required to be produced under subsection (4)—

(a)

prohibit a person found on the premises from—

(i)

removing the record or document from the premises;

(ii)

erasing anything from, adding anything to, or otherwise altering anything in, the record or document; or

(iii)

otherwise interfering in any way with, or causing or permitting any other person to interfere with, the record or document; or

(b)

take any other step that appears to the authorized person to be necessary for—

(i)

preserving the record or document; or

(ii)

preventing interference with the record or document.

(6)

An authorized person who enters any premises under this section must, if required, produce the warrant for inspection.

(7)

Section 102 of the Criminal Procedure Ordinance (Cap. 221) applies to any property that has, because of this section, come into the possession of the Authority, as it applies to property that has come into the possession of the police.

(8)

A person commits an offence if the person—

(a)

without reasonable excuse, fails to comply with a requirement or prohibition imposed on the person under subsection (4) or (5); or

(b)

obstructs an authorized person exercising a power conferred by subsection (4) or (5).

(9)

A person who commits an offence under subsection (8) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(10)

In this section—

authorized person

(

獲授權人

) means a person mentioned in, and authorized by, a warrant issued under subsection (2) to carry out the acts set out in paragraphs (a) and (b) of that subsection.

41L.

Removal of records and documents under section 41K

(1)

A record or document removed under section 41K(2) may be retained—

(a)

for a period not exceeding 6 months beginning on the day of its removal; or

(b)

for a longer period that may be required because of any criminal proceedings, or any proceedings under this Ordinance.

(2)

If an authorized person removes a record or document under section 41K(2), the authorized person must, as soon as practicable after the removal, give a receipt for the record or document.

Division 4

Miscellaneous

41M.

Lien claimed on records or documents

If the person in possession of a record or document required to be produced under section 41B or 41D claims a lien on the record or document—

(a)

the requirement to produce the record or document is not affected by the lien;

(b)

no fee is payable for the production; and

(c)

the production is without prejudice to the lien.

41N.

Production of information in information systems, etc.

If any information or matter contained in a record or document required to be produced under section 41B or 41D is recorded otherwise than in a legible form, a power to require the production of the record or document includes the power to require the production of a reproduction of the recording of the information or matter or of the relevant part of it—

(a)

if the recording enables the information or matter to be reproduced in a legible form—in a legible form; and

(b)

if the information or matter is recorded in an information system—in a form which enables the information or matter to be reproduced in a legible form.

41O.

Inspection of records or documents seized, etc.

(1)

If a specified person has taken possession of a record or document under this Part, the specified person must permit a person who would be entitled to inspect the record or document had the specified person not taken possession of it, to inspect it and to make copies or otherwise record details of it at all reasonable times.

(2)

The permission is subject to any reasonable conditions the specified person imposes.

(3)

In this section—

specified person

(

指明人士

) means—

(a)

an authorized person within the meaning of section 41K; or

(b)

an investigator.

Division 5

Disciplinary Actions

41P.

Disciplinary actions in respect of authorized insurers

(1)

The Authority may exercise any of the powers specified in subsection (2) in respect of an authorized insurer if—

(a)

the insurer is guilty of misconduct;

(b)

the insurer was guilty of misconduct; or

(c)

the Authority is of the opinion that—

(i)

a person who holds the position of a director or controller of the insurer is not a fit and proper person to hold that position; or

(ii)

a person who held the position of a director or controller of the insurer was not a fit and proper person to hold that position.

(2)

The following powers are specified for subsection (1)—

(a)

to revoke the authorization of the authorized insurer, whether in relation to all or any, or a part of all or any, of the class or classes of insurance business for which the insurer is authorized to carry on;

(b)

to suspend the authorization of the authorized insurer, whether in relation to all or any, or a part of all or any, of the class or classes of insurance business for which the insurer is authorized to carry on, for a period or until the occurrence of an event, that the Authority specifies;

(c)

to prohibit the authorized insurer from applying to be authorized to carry on a class of insurance business, for a period or until the occurrence of an event, that the Authority specifies;

(d)

to reprimand the authorized insurer publicly or privately;

(e)

to order the authorized insurer to pay a pecuniary penalty not exceeding the amount which is the greater of—

(i)

$10,000,000; or

(ii)

3 times the amount of the profit gained or loss avoided by the insurer as a result of the misconduct, or of the conduct of the director or controller of the insurer which leads the Authority to form the opinion referred to in subsection (1)(c) in relation to that director or controller.

(3)

If the Authority has exercised its power under subsection (1), it may disclose to the public details of its decision, the reasons for which the decision was made, and any material facts relating to the case.

(4)

The Authority, in forming an opinion for subsection (1)(c), may, among other matters (including those specified in section 14A), take into account the present or past conduct of the person.

(5)

Subject to subsection (6), in this section—

misconduct

(

不當行為

) means—

(a)

a contravention of a provision of this Ordinance;

(b)

a contravention of a term or condition of an authorization granted under section 8 or 8A;

(Amended 17 of 2020 s. 17)

(c)

a contravention of any other condition imposed on an authorized insurer under a provision of this Ordinance; or

(d)

an act or omission relating to the carrying on of a class of insurance business by an authorized insurer which, in the Authority’s opinion, is or is likely to be prejudicial to the interests of policy holders or potential policy holders or the public interest,

and

guilty of misconduct

(

犯不當行為

) is to be construed accordingly.

(6)

This section does not apply to any contravention, act or omission specified in paragraph (a), (b), (c) or (d) of the definition of misconduct in subsection (5) that occurred before the commencement date of this Part.

41Q.

Procedural requirements in respect of exercise of powers under section 41P

(1)

The Authority must not exercise a power under section 41P without first giving the authorized insurer in respect of whom the power is to be exercised a reasonable opportunity of being heard.

(2)

If the Authority decides to exercise a power under section 41P in respect of an authorized insurer, the Authority must inform the insurer of its decision to do so by notice in writing.

(3)

The notice must include—

(a)

a statement of the reasons for the decision;

(b)

the time when the decision is to take effect;

(c)

in so far as applicable, the duration and terms of the revocation, suspension or prohibition to be imposed under the decision;

(d)

in so far as applicable, the terms in which the authorized insurer is to be reprimanded under the decision; and

(e)

in so far as applicable, the amount of the pecuniary penalty to be imposed under the decision and the period within which it is required to be paid.

(4)

In subsection (1), a reference to an opportunity of being heard is a reference to an opportunity to make written representations or oral representations.

41R.

Guidelines for exercise of power to impose pecuniary penalty under section 41P

(1)

The Authority must not exercise a power under section 41P to impose a pecuniary penalty unless—

(a)

it has published, in the Gazette and in any other manner it considers appropriate, guidelines to indicate the way in which it proposes to exercise that power; and

(b)

in exercising that power, it has had regard to the guidelines so published.

(2)

The guidelines are not subsidiary legislation.

41S.

General provisions relating to exercise of disciplinary powers

(1)

At any time when the Authority is contemplating exercising a power under section 41P, it may, if it considers it appropriate to do so in the interests of policy holders or potential policy holders or the public interest, by agreement with the authorized insurer concerned—

(a)

exercise a power that the Authority may exercise in respect of the insurer under section 41P; and

(b)

take an additional action that the Authority considers appropriate in the circumstances of the case.

(2)

If the Authority exercises a power or takes an additional action under subsection (1), it must comply with section 41Q as if that section applied to the power or action, unless the insurer agrees otherwise.

(3)

In reaching a decision under this Division, the Authority may have regard to any information or material in its possession which is relevant to the decision, regardless of how the information or material has come into its possession.

41T.

Order for payment of pecuniary penalty

(1)

An authorized insurer ordered to pay a pecuniary penalty under section 41P must pay the penalty to the Authority within 30 days, or a longer period that the Authority specifies by notice under section 41Q(3)(e), after the order has taken effect.

(2)

The Court of First Instance may, on an application of the Authority, register an order to pay a pecuniary penalty made under section 41P in the Court.

(3)

On registration, the order is to be regarded as an order of the Court of First Instance made within the civil jurisdiction of the Court for the payment of money.

(4)

For making an application under subsection (2), the Authority must produce to the Registrar of the High Court a notice in writing requesting that the order be registered, together with the original and a copy of the order.

(5)

A pecuniary penalty paid to or recovered by the Authority under an order made under section 41P must be paid by the Authority into the general revenue.

41U.

Effect of suspension under section 41P

(1)

If the authorization of an authorized insurer is suspended under section 41P, the insurer must, during the suspension period—

(a)

continue to be regarded for the purposes of this Ordinance to be authorized, whether in relation to all or any, or a part of all or any, of the class or classes of insurance business for which the authorization of the insurer is suspended; and

(b)

without limiting paragraph (a), continue to be required to comply with the provisions of this Ordinance relating to an authorized insurer as would apply to the insurer were the authorization not so suspended.

(2)

Without limiting the powers that can be exercised by the Authority under section 41P, the Authority may revoke the authorization even though the authorization is suspended under section 41P.

41V.

Revocation or suspension does not avoid or affect agreement, etc.

A revocation or suspension of the authorization of a person under this Division does not—

(a)

avoid or affect an agreement, transaction or arrangement entered into by the person, regardless of whether the agreement, transaction or arrangement was entered into before or after the revocation or suspension; or

(b)

affect a right, obligation or liability arising under the agreement, transaction or arrangement.

41W.

Requirement to transfer records on revocation or suspension

(1)

If the authorization of an authorized insurer is revoked or suspended under this Division, the Authority may, by notice in writing, require the insurer to transfer to a policy holder of the insurer a copy of the records relating to the policy holder’s assets or affairs, held at any time for the policy holder as specified in the notice.

(2)

A person who, without reasonable excuse, fails to comply with a requirement imposed on the person under subsection (1) commits an offence and is liable to a fine of $200,000 and to imprisonment for 2 years.

Part VI

Insolvency and Winding Up

(Format changes—E.R. 4 of 2017)

42.

Circumstances in which authorized insurer deemed to be insolvent

(Amended 12 of 2015 s. 2)

(1)

An authorized insurer is deemed for the purposes of sections 177 and 327 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) to be unable to pay its debts if at any time the amount of capital of the insurer, as determined in accordance with the rules made under section 129, is less than the minimum capital amount for the insurer.

(Amended 8 of 1989 s. 6; 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

(1A)

(Repealed 20 of 2023 s. 61)

(2)

This section does not affect the manner in which, on a winding up, any assets or liabilities are required to be dealt with by virtue of section 45.

(Amended 20 of 2023 s. 61)

43.

Winding up of authorized insurer under Companies (Winding Up and Miscellaneous Provisions) Ordinance

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

The Court of First Instance (in this Part referred to as the Court) may order the winding up, in accordance with the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), of an authorized insurer and the provisions of that Ordinance shall apply accordingly subject to the modification that the insurer may be ordered to be wound up on the petition of 10 or more policy holders:

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

Provided that such a petition shall not be presented except by leave of the Court, and leave shall not be granted until a prima facie case has been established to the satisfaction of the Court and until security for costs for such amount as the Court may think reasonable has been given.

(Amended 25 of 1998 s. 2)

44.

Winding up on petition of Authority

(Amended 12 of 2015 s. 2)

(1)

The Authority may present a petition for the winding up, in accordance with the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), of an authorized insurer, being a company which may be wound up by the Court under that Ordinance, on the ground—

(Amended 28 of 2012 ss. 912 & 920 ; 12 of 2015 s. 2)

(a)

that the company is unable to pay its debts within the meaning of sections 177 and 178 or section 327 of that Ordinance;

(b)

that the company has failed to satisfy an obligation to which it is or was subject by virtue of this Ordinance or any Ordinance repealed thereby; or

(c)

that the company, being under the obligation imposed by section 16 with respect to the keeping or preserving of proper books of account, has failed to satisfy that obligation or to produce books kept in satisfaction of that obligation.

(2)

In any proceedings on a petition to wind up an authorized insurer presented by the Authority under subsection (1), evidence that the company was insolvent—

(Amended 12 of 2015 s. 2)

(a)

at the close of the period to which the accounts and balance sheet of the company last submitted under a requirement prescribed by virtue of section 17 relate; or

(b)

at any date or time specified in a requirement under section 32 or 34,

is evidence that the company continues to be unable to pay its debts, unless the contrary is proved.

(Amended 20 of 2023 s. 62)

(3)

If, in the case of an authorized insurer, being a company which may be wound up by the Court under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32), it appears to the Authority that it is expedient in the public interest that the company should be wound up, the Authority may, unless the company is already being wound up by the Court, present a petition for it to be so wound up if the Court thinks it just and equitable for it to be so wound up.

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

(4)

Where a petition for the winding up of an authorized insurer is presented by a person other than the Authority, a copy of the petition shall be served on the Authority and the Authority shall be entitled to be heard on the petition and to call, examine and cross-examine any witness and, if the Authority so thinks fit, support or oppose the making of a winding-up order.

(Amended 12 of 2015 s. 2)

45.

Winding up of authorized insurer

(Amended 12 of 2015 s. 2)

(1)

Unless the Court otherwise orders, an authorized insurer shall not be wound up voluntarily; but no order shall be made under this subsection unless notice of the application has been served on the Authority who shall be entitled to be heard on the application and to call, examine and cross-examine any witness and, if the Authority so thinks fit, support or oppose the making of the order.

(Amended 51 of 1992 s. 12; 12 of 2015 s. 2)

(2)

Section 23(1) and (1A) does not have effect in relation to the winding up of an authorized insurer but, subject to subsection (4) and to rules made by virtue of section 49(2), in any such winding up—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 63)

(a)

the assets representing a separate fund of the insurer are available only for meeting the liabilities of the insurer attributable to the part of its business for which the separate fund is maintained;

(Amended 59 of 1993 s. 12)

(b)

the other assets of the insurer are available only for meeting the liabilities of the insurer attributable to its other business.

(3)

Subject to subsection (4A), where the value of the assets mentioned in either paragraph of subsection (2) exceeds the amount of the liabilities mentioned in that paragraph the restriction imposed by that subsection shall not apply to so much of those assets as represents the excess.

(Amended 59 of 1993 s. 12)

(4)

In relation to the assets falling within either paragraph of subsection (2) the creditors mentioned in section 200(1) and (2) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) shall be only those who are creditors in respect of liabilities falling within that paragraph; and any general meetings of creditors summoned for the purposes of that section shall accordingly be separate general meetings of the creditors in respect of the liabilities falling within each paragraph.

(Amended 28 of 2012 ss. 912 & 920)

(4A)

Where in respect of a separate fund of an authorized insurer, the value of the assets representing the separate fund exceeds the amount of the liabilities attributable to the part of its business for which the separate fund is maintained, then so much of those assets as represents the excess are to be available for meeting—

(Amended 12 of 2015 s. 2; 20 of 2023 s. 63)

(a)

if in respect of any other separate fund of the insurer, the amount of the liabilities attributable to the part of its business for which that other separate fund is maintained exceeds the value of the assets of that other separate fund—

(Amended 20 of 2023 s. 63)

(i)

if there is only one such other separate fund—the liabilities of that other separate fund to the extent to which they exceed the assets of that other separate fund;

(ii)

if there are 2 or more such other separate funds—the respective liabilities of those other separate funds pro rata to the extent to which they exceed the respective assets of those other separate funds;

(b)

if paragraph (a) is not applicable or part of that excess remains after the operation of that paragraph—the liabilities of the insurer attributable to other parts of its business.

(Added 59 of 1993 s. 12)

(4B)

To avoid doubt, for the purposes of the operation of subsection (4) in relation to subsection (2)(a), no separate fund of an authorized insurer may be aggregated with any other separate fund of the insurer.

(Added 59 of 1993 s. 12. Amended 12 of 2015 s. 2)

(5)

Where under section 276(1) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) the Court orders any money or property to be repaid or restored to an authorized insurer or any sum to be contributed to its assets then, if and so far as the wrongful act which is the reason for the making of the order related to assets representing a separate fund or separate funds of the insurer, the Court must include in the order a direction that the money, property or contribution is treated for the purposes of this Ordinance as assets of that separate fund or those separate funds and this Ordinance has effect accordingly.

(Amended 28 of 2012 ss. 912 & 920; 12 of 2015 s. 2)

(6)

In this section—

separate fund

(

獨立基金

), in relation to an authorized insurer, means a fund maintained separately by the insurer under—

(a)

if the insurer is one described in section 21B(1)—section 21B(2);

(b)

if the insurer is one described in section 21B(4)—section 21B(5); or

(c)

if the insurer is one described in section 21B(7)—section 21B(8).

(Added 20 of 2023 s. 63)

(Amended 20 of 2023 s. 63)

46.

Continuation of long term business of authorized insurer in liquidation

(Amended 12 of 2015 s. 2)

(1)

This section has effect in relation to the winding up of an authorized insurer being a company carrying on long term business.

(Amended 12 of 2015 s. 2)

(2)

The liquidator shall, unless the Court otherwise orders, carry on the long term business of the insurer with a view to its being transferred as a going concern to another insurer, whether an existing authorized insurer or an insurer formed for that purpose; and, in carrying on that business as aforesaid, the liquidator may agree to the variation of any contracts of insurance in existence when the winding-up order is made but shall not effect any new contracts of insurance.

(Amended 12 of 2015 s. 2)

(3)

If the liquidator is satisfied that the interests of the creditors in respect of liabilities of the insurer attributable to its long term business require the appointment of a special manager of the insurer’s long term business, he may apply to the Court, and the Court may on such application appoint a special manager of that business to act during such time as the Court may direct, with such powers, including any of the powers of a receiver or manager, as may be entrusted to him by the Court.

(4)

Section 216(2) and (3) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) shall apply to a special manager appointed under subsection (3) as they apply to a special manager appointed under that section.

(Amended 28 of 2012 ss. 912 & 920)

(5)

The Court may, if it thinks fit and subject to such conditions (if any) as it may determine, reduce the amount of the contracts made by the insurer in the course of carrying on its long term business.

(6)

The Court may, on the application of the liquidator, a special manager appointed under subsection (3) or the Authority, appoint an independent actuary to investigate the long term business of the insurer and to report to the liquidator, the special manager or the Authority, as the case may be, on the desirability or otherwise of that business being continued and on any reduction in the contracts made in the course of carrying on that business that may be necessary for its successful continuation.

(Amended 12 of 2015 s. 2)

(7)

Notwithstanding that sanction is required under sections 199(2), 199A(1)(b) and 199B(1) and (2) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) for a liquidator to exercise a power to bring or defend any action or other legal proceedings in the name of the company, the liquidator may without any of the sanctions referred to in those provisions make an application in the name of and on behalf of the insurer under section 24.

(Amended 28 of 2012 ss. 912 & 920 ; 14 of 2016 s. 181)

47.

Winding up of authorized insurers involved in transfer of business

(Amended 12 of 2015 s. 2)

(1)

Where the insurance business or any part of the insurance business of an authorized insurer has been transferred to an authorized insurer under an arrangement in pursuance of which the first-mentioned insurer (the transferor company) or the creditors thereof has or have claims against the insurer to which the transfer was made (the transferee company), then, if the transferee company is being wound up by the Court, the Court shall, subject to this section, order the transferor company to be wound up in conjunction with the transferee company, and may by the same or any subsequent order appoint the same person to be liquidator for the 2 companies, and make provision for such other matters as may seem to the Court necessary, with a view to the companies being wound up as if they were one company.

(Amended 12 of 2015 s. 2)

(2)

The commencement of the winding up of the transferee company shall, save as otherwise ordered by the Court, be the commencement of the winding up of the transferor company.

(3)

In adjusting the rights and liabilities of the members of the several companies between themselves, the Court shall have regard to the constitution of the companies, and to the arrangements entered into between the companies, in the same manner as the Court has regard to the rights and liabilities of different classes of contributories in the case of the winding up of a single company, or as near thereto as circumstances admit.

(4)

Where an authorized insurer alleged to be a transferor company is not in process of being wound up at the same time as the transferee company, the Court shall not direct the transferor company to be wound up unless, after hearing all objections (if any) that may be urged by or on behalf of the company against its being wound up, the Court is of opinion that the company is subsidiary to the transferee company, and that the winding up of the company in conjunction with the transferee company is just and equitable.

(Amended 12 of 2015 s. 2)

(5)

An application may be made in relation to the winding up of any transferor company in conjunction with a transferee company by any creditor of or person interested in, the transferee or transferor company.

(6)

Where an authorized insurer stands in the relation of a transferee company to one company, and in the relation of a transferor company to some other company, or where there are several companies standing in the relation of transferor companies to one transferee company, the Court may deal with any number of such companies together or in separate groups, as it thinks most expedient, upon the principles laid down in this section.

(Amended 12 of 2015 s. 2)

48.

Reduction of contracts as alternative to winding up

In the case of an authorized insurer which has been proved to be unable to pay its debts, the Court may, if it thinks fit, reduce the amount of the contracts of the insurer on such terms and subject to such conditions as the Court thinks just, in place of making a winding-up order.

(Amended 12 of 2015 s. 2)

49.

Winding up rules

(1)

Rules may be made under section 296 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) for determining the amount of the liabilities of an authorized insurer to policy holders of any class or description for the purpose of proof in a winding up and generally for carrying into effect the provisions of this Ordinance with respect to the winding up of authorized insurers.

(Amended 28 of 2012 ss. 912 & 920)

(2)

Without prejudice to the generality of subsection (1), rules under the said section 296 may make provision for all or any of the following matters—

(a)

the identification of the assets and liabilities falling within section 45(2)(a) or (b);

(b)

the apportionment between the assets falling within section 45(2) of the costs, charges and expenses of the winding up and of any debts of the authorized insurer having priority under section 265 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32);

(Amended 28 of 2012 ss. 912 & 920)

(c)

the determination of the amount of liabilities of any description falling within paragraph (a) or (b) of section 45(2) for the purpose of establishing whether or not there is any such excess in respect of that paragraph as is mentioned in section 45(3);

(d)

the application of assets within paragraph (a) of section 45(2) for meeting the liabilities within that paragraph;

(e)

the application of assets representing any such excess as is mentioned in section 45(3).

(Amended 12 of 2015 s. 2)

49A.

Winding up of authorized insurer subject to direction under section 35(2)(b)

(Amended 12 of 2015 s. 2)

(1)

Where before the presentation of a petition for the winding up of an authorized insurer by the Court, and whether or not the petition is presented by the Authority, there has in respect of the insurer been a direction given under section 35(2)(b) which has continued in force at all times until the presentation of the petition, and a winding up order is made thereon, then, notwithstanding the provisions of section 184(2) of CWUMPO, for the purposes of sections 170, 179, 182, 183, 266B, 267A, 269 and 274, and paragraphs (d), (e), (h), (i), (j), (k), (l) and (o) of section 271(1), of CWUMPO, the winding up of the insurer by the Court is deemed to have commenced at the time the direction was so given.

(Amended 12 of 2015 s. 2)

(2)

Where before an application has been made to the Court of First Instance for an order under section 45(1) for a voluntary winding up of an authorized insurer, there has in respect of the insurer been a direction given under section 35(2)(b) which has continued in force at all times until the making of the application, and such order is made thereon, then, notwithstanding the provisions of section 230 of CWUMPO, for the purposes of sections 170, 232, 266B, 267A, 269 and 274, and paragraphs (d), (e), (h), (i), (j), (k), (l) and (o) of section 271(1), of CWUMPO, the voluntary winding up of the insurer is deemed to have commenced at the time the direction was so given.

(Amended 25 of 1998 s. 2; 12 of 2015 s. 2)

(2A)

For the purposes of anything done or suffered to be done by the insurer mentioned in subsection (1) or (2) before the commencement date of the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 (14 of 2016), that subsection applies as if the reference to section 266B of CWUMPO in that subsection were a reference to section 266 of the pre-amended CWUMPO.

(Added 14 of 2016 s. 182)

(2B)

For the purposes of a charge created on the undertaking or property of the insurer mentioned in subsection (1) or (2) before the commencement date of the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 (14 of 2016), that subsection applies as if the reference to section 267A of CWUMPO in that subsection were a reference to section 267 of the pre-amended CWUMPO.

(Added 14 of 2016 s. 182)

(3)

Nothing in section 182 or 232 of CWUMPO shall invalidate any disposition of the property of an authorized insurer made by it under the direction of the Manager of the insurer acting bona fide in the course of managing the affairs, business and property of the insurer.

(Amended 12 of 2015 s. 2)

(4)

In this section—

CWUMPO

(

《公司(清盤及雜項條文)條例》

) means the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32);

pre-amended CWUMPO

(

《修訂前的公司(清盤及雜項條文)條例》

) means CWUMPO as in force immediately before the commencement date of the Companies (Winding Up and Miscellaneous Provisions) (Amendment) Ordinance 2016 (14 of 2016).

(Added 14 of 2016 s. 182)

(Added 51 of 1992 s. 13. Amended 28 of 2012 ss. 912 & 920; 14 of 2016 s. 182)

49B.

Notice of commencement of liquidation, etc. and of appointment of liquidator, etc.

(1)

Where any proceedings are commenced outside Hong Kong for the liquidation of an authorized insurer or for the purpose of placing an authorized insurer under any other form of insolvency administration, the insurer shall give to the Authority written notice of the commencement of such proceedings, and, where a provisional liquidator or liquidator or a person charged with such other form of insolvency administration is appointed, of such appointment, not later than 3 working days after the event to which the notice relates.

(2)

Where a receiver or manager of the property in Hong Kong or elsewhere of an authorized insurer is appointed, the insurer shall give to the Authority written notice of such appointment not later than 3 working days after the appointment.

(3)

Where any proceedings are commenced in Hong Kong or elsewhere to enforce a judgment given or order made against an authorized insurer for the payment of money, the insurer shall give to the Authority written notice of the commencement of such proceedings not later than 3 working days after such commencement.

(4)

An authorized insurer which fails to comply with any of the provisions of this section commits an offence and is liable to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years, together with a fine of $2,000 for each day on which the failure to give the relevant notice continues after the expiry of the period prescribed under that provision.

(Amended 35 of 1996 s. 24)

(5)

In this section—

working day

(

工作日

) means a day other than—

(a)

a public holiday;

(b)

a Saturday; or

(c)

a gale warning day or black rainstorm warning day as defined by section 71(2) of the Interpretation and General Clauses Ordinance (Cap. 1).

(Added 12 of 2015 s. 59)

(Added 25 of 1994 s. 16. Amended 12 of 2015 s. 2)

Part VII

Special Provisions Relating to Lloyd’s

(Format changes—E.R. 4 of 2017)

50.

Requirements to be complied with by Lloyd’s

During any period when a member of Lloyd’s is carrying on insurance business in Hong Kong, Lloyd’s, a member of Lloyd’s and the members of Lloyd’s taken together shall comply with the relevant requirements contained in this Part.

(Replaced 51 of 1999 s. 4)

50A.

Capital requirements

Sections 10 and 13AA apply to Lloyd’s as if a reference to an applicable company or authorized insurer in those sections were a reference to Lloyd’s.

(Replaced 20 of 2023 s. 64)

50B.

Fit and proper management

(1)

Lloyd’s shall appoint a person (not being a body corporate) as its authorized representative who shall reside in Hong Kong and be responsible for its overall operation in Hong Kong.

(2)

Without limiting the generality of subsection (1), the authorized representative shall be responsible for—

(a)

accepting service of notices on behalf of Lloyd’s and its members;

(b)

servicing Lloyd’s policy holders in Hong Kong with a view to protecting their interests; and

(c)

ensuring compliance by Lloyd’s and its members with the provisions of this Ordinance.

(3)

Sections 13A (except section 13A(12)) and 13AB apply to Lloyd’s.

(Replaced 12 of 2015 s. 61)

(4)

A reference in those sections to an authorized insurer is a reference to Lloyd’s.

(Replaced 12 of 2015 s. 61)

(5)

A reference in those sections to a controller is a reference to the authorized representative.

(Replaced 12 of 2015 s. 61)

(6)

(Repealed 12 of 2015 s. 61)

(7)

Where, subsequent to the appointment of an authorized representative, there is any change in the representative’s particulars as submitted to the Authority under this section, Lloyd’s shall, within one month of such change occurring, notify in writing the Authority.

(Amended 12 of 2015 s. 2)

(8)

Where Lloyd’s contravenes subsection (7), it commits an offence and is liable, on conviction, to a fine of $200,000 together with a fine of $2,000 for each day on which the offence continues.

(Added 51 of 1999 s. 4)

50BA.

Appointment of actuary

(1)

If Lloyd’s carries on long term business in or from Hong Kong, sections 15AAA, 15AAAB, 15AA, 15AAB, 15AABA, 15AAC, 15B, 15C and 18 apply to Lloyd’s as if Lloyd’s were a non-HK insurer described in section 21B(7).

(2)

If Lloyd’s carries on general business in or from Hong Kong, sections 15AAA, 15AAAB, 15AA, 15AAB, 15AABA, 15AAC, 15B, 15C and 18A apply to Lloyd’s as if Lloyd’s were a non-HK insurer described in section 25AA(5).

(Added 20 of 2023 s. 65)

50C.

Submission requirements

(Amended 20 of 2023 s. 66)

(1)

Section 17 applies to Lloyd’s as if a reference to an authorized insurer in that section were a reference to Lloyd’s.

(Replaced 20 of 2023 s. 66)

(2)-(8)

(Repealed 20 of 2023 s. 66)

(9)

On submitting to the Authority an annual report published by Lloyd’s on its global results under a requirement prescribed by virtue of section 17, Lloyd’s must pay to the Authority a fee equal to the fee paid annually by an authorized insurer under section 13(1).

(Amended 12 of 2015 s. 2; 20 of 2023 s. 66)

(10)

If it appears to the Authority that Lloyd’s does not intend to effect any contract of insurance in or from Hong Kong after the date on which Lloyd’s submits the annual report mentioned in subsection (9), the Authority may waive the payment of the fee payable in respect of the financial year to which the report relates and any subsequent financial year.

(Replaced 20 of 2023 s. 66)

(11)

The Authority may revoke the waiver under subsection (10) by a written notice to Lloyd’s, and the revocation takes effect from the date of the notice.

(Added 20 of 2023 s. 66)

(Added 51 of 1999 s. 4)

50CA.

Disclosure requirements

Section 21A applies to Lloyd’s as if a reference to an authorized insurer in that section were a reference to Lloyd’s.

(Added 20 of 2023 s. 67)

50D.

Local assets

Sections 25A, 25B and 25C apply to Lloyd’s as if a reference to an authorized insurer in those sections were a reference to Lloyd’s.

(Added 51 of 1999 s. 4. Amended 12 of 2015 ss. 2 & 63; 20 of 2023 s. 68)

50E.

Part X applies to Lloyd’s

(1)

Part X applies to Lloyd’s.

(2)

A reference in Part X to an insurer or authorized insurer is a reference to a member of Lloyd’s.

(Replaced 12 of 2015 s. 64)

50F.

Powers of intervention

(1)

The provisions of Part V, except section 40, apply to one or more of the following, as the context may require—

(a)

Lloyd’s;

(b)

a member of Lloyd’s who carries on insurance business in Hong Kong;

(c)

the members of Lloyd’s taken together who carry on insurance business in Hong Kong,

and a reference in those provisions to an authorized insurer is a reference to one or more of Lloyd’s, such member and such group of members.

(Amended 12 of 2015 s. 2; 20 of 2023 s. 69)

(2)

(Repealed 20 of 2023 s. 69)

(Added 51 of 1999 s. 4)

50G.

Further regulatory powers

(1)

The provisions of Part VA, except sections 41P(2)(a), (b) and (c), 41U, 41V and 41W, apply to one or more of the following, as the context requires—

(a)

Lloyd’s;

(b)

a member of Lloyd’s who carries on insurance business in Hong Kong;

(c)

the members of Lloyd’s taken together who carry on insurance business in Hong Kong.

(2)

A reference in those provisions to an insurer or authorized insurer is a reference to one or more of Lloyd’s, the member and the group of members.

(3)

A reference in those provisions to a controller is a reference to the authorized representative appointed under section 50B.

(Added 12 of 2015 s. 65)

50H.

Part XIII applies to Lloyd’s etc.

(1)

The provisions of Part XIII, except section 122, apply to one or more of the following, as the context requires—

(a)

Lloyd’s

(b)

a member of Lloyd’s who carries on insurance business in Hong Kong;

(c)

the members of Lloyd’s taken together who carry on insurance business in Hong Kong.

(2)

A reference in those provisions to an insurer or authorized insurer is a reference to one or more of Lloyd’s, the member and the group of members.

(3)

A reference in those provisions to a controller is a reference to the authorized representative appointed under section 50B.

(4)

Section 122 applies to Lloyd’s and a reference in that section to an authorized insurer is a reference to Lloyd’s.

(Added 12 of 2015 s. 65)

Part VIII

Exemptions

(Format changes—E.R. 4 of 2017)

51.

Exempted persons

The following persons are exempted from the provisions of this Ordinance—

(a)

any body of persons, corporate or unincorporate, carrying on insurance business in Hong Kong only—

(i)

whose gross premium income does not exceed $500,000 in any financial year:

Provided that if the financial year of any such body is not a period of 12 months, the gross premium income of that body in that financial year is, for the purposes of this paragraph, deemed to be the sum obtained by dividing the amount of its gross premium income by the number of days in that financial year and multiplying the result by 365; and

(Amended 20 of 2023 s. 70)

(ii)

which consists of persons who are bound together by custom, religion, kinship, nationality or regional or local interest but who are not so bound together or associated for the purpose of the acquisition by them of gain;

(b)

a person carrying on in Hong Kong reinsurance business only, other than—

(i)

a body corporate that is incorporated in Hong Kong or is a re-domiciled company;

(ii)

a body corporate incorporated outside Hong Kong (other than a re-domiciled company) that has a place of business in Hong Kong or is represented in Hong Kong by an agent;

(iii)

any other person or any partnership having a place of business in Hong Kong;

(Amended 14 of 2025 s. 135)

(c)

any registered trade union within the meaning of the Trade Unions Ordinance (Cap. 332) which carries on insurance business limited to the provision for its members of provident benefits or strike benefits;

(d)

any registered co-operative society within the meaning of the Co-operative Societies Ordinance (Cap. 33);

(e)

the Hong Kong Export Credit Insurance Corporation;

(f)

any authorized institution to the extent only that such institution carries on insurance business of the nature specified in class G or H, or classes 16 and 17, or comprised in groups 1, 7 and 11 in Schedule 1 solely for the purposes of its banking business or deposit-taking business, as the case may be;

(Amended 27 of 1986 s. 137; 59 of 1993 s. 13; 49 of 1995 s. 53; 12 of 2015 s. 66)

(g)

the Credit Union League of Hong Kong incorporated under Part XI of the Credit Unions Ordinance (Cap. 119);

(Amended 68 of 1992 s. 20)

(h)

a recognized clearing house within the meaning of section 1 of Part 1 of Schedule 1 to the Securities and Futures Ordinance (Cap. 571) only to the extent that it guarantees the settlement of transactions in securities or futures contracts as defined in that section;

(Replaced 5 of 2002 s. 407)

(i)

a person who is authorized under Part III of the Securities and Futures Ordinance (Cap. 571) to provide automated trading services within the meaning of Schedule 5 to that Ordinance only to the extent that it guarantees the settlement of transactions in securities or futures contracts as defined in section 1 of Part 1 of Schedule 1 to that Ordinance.

(Added 5 of 2002 s. 407)

52.

(Repealed 50 of 1992 s. 6)

53.

Power of Chief Executive in Council to exempt insurer

(1)

The Chief Executive in Council may by order direct that, as respects any insurer specified in the order, such provisions of this Ordinance as may be so specified shall not apply to the insurer or shall apply to the insurer with such modifications or variations as may be so specified.

(2)

An order made under this section may be subject to conditions and may be amended or revoked at any time by the Chief Executive in Council.

(3)

In this section

insurer

includes Lloyd’s.

(Amended 31 of 1999 s. 3)

Part VIIIA

Secrecy, Disclosure of Information and Examinations by Outside Authorities

(Part VIIIA added 34 of 1988 s. 6)

(Format changes—E.R. 2 of 2012)

53A.

Secrecy

(1)

Except in the performance of any function under this Ordinance or for the carrying into effect of the provisions of this Ordinance, every person to whom this subsection applies—

(Amended 75 of 1995 s. 7; 12 of 2015 s. 67)

(a)

shall preserve and aid in preserving secrecy with regard to a matter coming to that person’s knowledge either—

(Amended 12 of 2015 s. 67)

(i)

by reason of that person’s appointment under this Ordinance; or

(ii)

in the course of—

(A)

performing a function under this Ordinance, or carrying into effect any provision of this Ordinance; or

(B)

assisting another person in performing a function under this Ordinance, or carrying into effect any provision of this Ordinance;

(Added 12 of 2015 s. 67)

(b)

shall not communicate any such matter to any person other than the person to whom such matter relates; and

(c)

shall not suffer or permit any person to have access to any records in his possession, custody or control or in the possession, custody or control of any other person so appointed or employed.

(1AA)

Subsection (1) applies to the following person—

(Amended 12 of 2015 s. 67)

(a)

the Authority;

(Replaced 12 of 2015 s. 67)

(b)

a person who is or has been a member, employee, agent, consultant or advisor of the Authority;

(Replaced 12 of 2015 s. 67)

(ba)

a person who has been the former authority;

(Added 12 of 2015 s. 67)

(bb)

a person who has been a member, employee, agent, consultant or advisor of the former authority;

(Added 12 of 2015 s. 67)

(c)

a person who is or has been an Advisor appointed under section 35(2)(a);

(Amended 12 of 2015 s. 67)

(d)

a person who is or has been a Manager appointed under section 35(2)(b);

(Amended 12 of 2015 s. 67; 18 of 2020 s. 8)

(da)

a person who is or has been a supervisory manager appointed under section 95ZT(1)(b); and

(Added 18 of 2020 s. 8)

(e)

a person who is or has been employed by, or who assists or has assisted a person mentioned in paragraph (c), (d) or (da),

(Replaced 12 of 2015 s. 67. Amended 17 of 2020 s. 28; 18 of 2020 s. 8)

and who performs or has performed any function under this Ordinance.

(Added 75 of 1995 s. 7. Amended 12 of 2015 s. 67)

(1AAB)

Subsection (1) also applies to the following persons—

(a)

a person who is or has been appointed under any provision of this Ordinance;

(b)

a person who is or has been performing a function under this Ordinance, or carrying into effect any provision of this Ordinance;

(c)

a person who assists or has assisted another person in performing a function under this Ordinance, or carrying into effect any provision of this Ordinance.

(Added 12 of 2015 s. 67. Amended 17 of 2020 s. 28)

(1A)

Subsection (1) shall not apply if the Manager of an authorized insurer, or the supervisory manager of a designated insurance holding company, is required to comply with a notice to furnish returns and information under section 51 of the Inland Revenue Ordinance (Cap. 112).

(Added 51 of 1992 s. 14. Amended 12 of 2015 s. 67; 18 of 2020 s. 8)

(2)

No person who receives information, in whatever form, submitted under section 6, 7, 13A, 13AC, 13AE, 13B, 14, 15, 15AAA, 15AAAB, 18, 18A, 19, 32, 32A, 33, 34, 50, 53D, 53E, 53F, 53G, 95I, 95J, 95K, 95L, 95O, 95S, 95X, 95ZF, 95ZG, 95ZH, 95ZI, 95ZJ, 95ZL, 95ZO or 95ZP or a requirement prescribed by virtue of section 17 may be required to produce to any court any document containing such information or to divulge or communicate to any court any matter or thing coming under the person’s notice in the performance of the person’s functions under this Ordinance, except in the course of—

(Amended 44 of 1990 s. 7; 50 of 1992 s. 7; 59 of 1993 s. 14; 12 of 2015 s. 67; 18 of 2020 s. 8; 20 of 2023 s. 71)

(a)

a prosecution for any offence;

(b)

the determination by the Court of First Instance of an application under section 24; or

(c)

a winding-up by the Court of First Instance under Part VI, X or XIA.

(Amended 25 of 1998 s. 2; 18 of 2020 s. 8; 20 of 2023 s. 71)

(3)

Subsection (1) does not apply to the disclosure of information—

(Amended 20 of 2023 s. 71)

(a)

in the form of a summary compiled from similar or related information provided by authorized insurers, licensed insurance intermediaries or designated insurance holding companies if the summary is so compiled as to prevent particulars relating to the business of those insurers, intermediaries or the supervised groups of those companies from being ascertained from the summary;

(Replaced 12 of 2015 s. 67. Amended 18 of 2020 s. 8)

(ab)

for seeking advice from, or giving advice by, a counsel or a solicitor, or any other professional advisor acting or proposing to act in a professional capacity, in connection with a matter arising under this Ordinance;

(Added 12 of 2015 s. 67)

(ac)

for, or otherwise in connection with, an audit required by section 5F;

(Added 12 of 2015 s. 67)

(b)

with a view to the institution of, or otherwise for the purposes of, any criminal proceedings or investigation, whether under this Ordinance or otherwise, in Hong Kong;

(c)

in connection with any civil proceedings arising out of this Ordinance;

(ca)

to the Tribunal in connection with any proceedings in the Tribunal;

(Added 12 of 2015 s. 67)

(cb)

by a person in connection with any judicial or other proceedings to which the person is a party;

(Added 12 of 2015 s. 67)

(cc)

in compliance with an order of a court, or in compliance with a law or a requirement made under a law;

(Added 12 of 2015 s. 67)

(d)

by the Authority with a view to the institution of, or otherwise for the purposes of, any disciplinary proceedings relating to the performance of his professional duties by a prescribed person;

(Replaced 59 of 1993 s. 14)

(da)

by the Authority to a prescribed person for the purpose of enabling or assisting the Authority to discharge its functions under this Ordinance;

(Added 59 of 1993 s. 14)

(db)

by a prescribed person where—

(i)

the information has been disclosed to that person under paragraph (da); and

(ii)

that person has the consent of the Authority to do so;

(Added 59 of 1993 s. 14)

(e)

to any of the persons specified in subsection (3AA) if in the opinion of the Authority—

(Amended L.N. 106 of 2002; 12 of 2015 ss. 2 & 67)

(i)

it is desirable or expedient that the information should be so disclosed in the interests of existing or potential policy holders or the public interest; or

(ii)

such disclosure will enable or assist the recipient of the information to perform his functions and it is not contrary to the interests of existing or potential policy holders or the public interest that the information should be so disclosed;

(Replaced 75 of 1995 s. 7. Amended 12 of 2015 s. 67)

(ea)

to the Financial Secretary, the Secretary for Justice, the Commissioner of Police, the Commissioner of the Independent Commission Against Corruption and the Tribunal, if the information is obtained by an investigator under sections 41D, 64ZZH and 95ZZG;

(Added 12 of 2015 s. 67. Amended 18 of 2020 s. 8)

(f)

by the Authority to an auditor or actuary of an authorized insurer or a licensed insurance broker company, or an auditor appointed under section 95ZF for the supervised group of a designated insurance holding company, if, in the opinion of the Authority, such information is necessary for the auditor or actuary, as the case may be, to discharge the duties of the auditor or actuary under this Ordinance;

(Added 75 of 1995 s. 7. Amended 12 of 2015 s. 67; 18 of 2020 s. 8; 20 of 2023 s. 71)

(fa)

by the Authority to the Anti-Money Laundering and Counter-Terrorist Financing Review Tribunal established under section 55 of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615);

(Added 15 of 2011 s. 84. Amended 4 of 2018 s. 40)

(fb)

by the Authority to the Resolution Compensation Tribunal;

(Added 23 of 2016 s. 207. Amended 23 of 2016 s. 239)

(fc)

by the Authority to the Resolvability Review Tribunal;

(Added 23 of 2016 s. 207. Amended 23 of 2016 s. 239)

(fd)

by the Authority to a resolution authority for the purpose of enabling or assisting the resolution authority to perform its functions under the Financial Institutions (Resolution) Ordinance (Cap. 628);

(Added 23 of 2016 s. 207. Amended 23 of 2016 s. 239; E.R. 2 of 2017)

(g)

subject to subsection (3A), by the Authority with the consent of the person from whom the information was obtained or received and if the information relates to a different person, also with the consent of the person to whom the information relates;

(Added 75 of 1995 s. 7. Amended 31 of 2000 s. 3)

(h)

by the Authority if it has been made available to the public by virtue of its being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this section or section 53B;

(Added 75 of 1995 s. 7. Amended 31 of 2000 s. 3; 20 of 2023 s. 71)

(i)

by the Authority if—

(i)

the information is in the statements and reports submitted by a designated insurance holding company to the Authority under section 95ZH(1); and

(ii)

in the opinion of the Authority, it is desirable that the information should be so disclosed in the interests of existing or potential policy holders or in the public interest; or

(Replaced 20 of 2023 s. 71)

(j)

by the Authority if—

(i)

the information is submitted to the Authority under a requirement prescribed by virtue of section 17; and

(ii)

the disclosure is made for statistical purpose for the general understanding of the performance of insurance industry.

(Added 20 of 2023 s. 71)

(3AA)

The following persons are specified for the purposes of subsection (3)(e)—

(a)

the Chief Executive;

(b)

the Financial Secretary;

(c)

the Secretary for Justice;

(d)

an inspector appointed by the Financial Secretary under section 840 or 841 of the Companies Ordinance (Cap. 622) to investigate the affairs of a company;

(e)

a person holding an authorized statutory office;

(f)

a public officer authorized by the Financial Secretary for the purposes of subsection (3)(e).

(Added 12 of 2015 s. 67)

(3A)

Subsection (3)(g) shall not operate to require the Authority to disclose in or in relation to any civil proceedings any information which the Authority may disclose, or has disclosed, pursuant to that subsection.

(Added 75 of 1995 s. 7. Amended 12 of 2015 s. 2)

(3B)

For the purposes of subsection (3AA),

authorized statutory office

(

認可法定職位

) means—

(Amended 12 of 2015 s. 67)

(a)

the Monetary Authority appointed under section 5A of the Exchange Fund Ordinance (Cap. 66) in the performance of his functions under the Banking Ordinance (Cap. 155) or the Payment Systems and Stored Value Facilities Ordinance (Cap. 584);

(Amended 18 of 2015 s. 55; 12 of 2015 s. 67)

(b)

the Securities and Futures Commission referred to in section 3(1) of the Securities and Futures Ordinance (Cap. 571);

(Added 75 of 1995 s. 7. Amended 4 of 1998 s. 3; 5 of 2002 s. 407; 18 of 2006 s. 67)

(c)

the Mandatory Provident Fund Schemes Authority established by section 6 of the Mandatory Provident Fund Schemes Ordinance (Cap. 485); or

(Added 4 of 1998 s. 3. Amended 18 of 2006 s. 67)

(d)

the Accounting and Financial Reporting Council continued under section 6 of the Accounting and Financial Reporting Council Ordinance (Cap. 588).

(Added 18 of 2006 s. 67. Amended L.N. 66 of 2022)

(3C)

The Legislative Council may, by resolution, amend subsection (3B) by adding or deleting the authorized statutory offices defined therein.

(Added 75 of 1995 s. 7)

(3D)

Where information is disclosed in any of the circumstances described in subsection (3), other than subsection (3)(a), (g), (h) and (i), neither—

(Amended 31 of 2000 s. 3; 12 of 2015 s. 67)

(a)

the person to whom that information is disclosed; nor

(b)

any person obtaining or receiving the information, whether directly or indirectly, from the person referred to in paragraph (a),

shall disclose the information, or any part thereof, to any other person without the consent of the Authority.

(Added 75 of 1995 s. 7. Amended 12 of 2015 s. 2)

(3DA)

Subsection (3D) does not apply if—

(a)

the information, or any part of it, has already been made available to the public;

(b)

the disclosure is for seeking advice from, or giving advice by, a counsel or a solicitor, or any other professional advisor acting or proposing to act in a professional capacity, in connection with a matter arising under this Ordinance;

(c)

the disclosure is in connection with any judicial or other proceedings to which the person or the other person referred to in subsection (3D)(a) or (b) is a party; or

(d)

the disclosure is in compliance with an order of a court, or in compliance with a law or a requirement made under a law.

(Added 12 of 2015 s. 67)

(3E)

Subject to subsections (2) and (3)(b) and (c), a person who is the Authority, and a person employed or authorized by or assisting the Authority, shall not disclose any information under this section relating to the affairs of any individual policy holder of an insurer.

(Added 31 of 2000 s. 3. Amended 12 of 2015 s. 2)

(3F)

In disclosing information in any of the circumstances described in subsection (3) or in granting a consent under subsection (3D), the Authority may impose the conditions that it considers appropriate.

(Added 12 of 2015 s. 67)

(3G)

The Monetary Authority may attach a condition to a disclosure of information made by the Monetary Authority under this section that neither—

(a)

the person to whom the information is disclosed; nor

(b)

a person obtaining or receiving the information, whether directly or indirectly, from the person referred to in paragraph (a),

may disclose the information, or any part of it, to any other person without the consent of the Monetary Authority.

(Added 12 of 2015 s. 67)

(3H)

Subsection (3G) does not apply to the disclosure of information made by the Monetary Authority to the Authority.

(Added 12 of 2015 s. 67)

(3I)

Subsection (1) does not affect the operation of section 13(3) of The Ombudsman Ordinance (Cap. 397) or section 44(8) of the Personal Data (Privacy) Ordinance (Cap. 486).

(Added 12 of 2015 s. 67)

(4)

Any person who contravenes subsection (1) commits an offence and is liable—

(a)

on conviction upon indictment to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and, in the case of an individual, to imprisonment for 6 months.

(Amended 35 of 1996 s. 26)

(4A)

Any person who contravenes subsection (3D) commits an offence and is liable—

(a)

on conviction upon indictment to a fine of $200,000 and, in the case of an individual, to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and, in the case of an individual, to imprisonment for 6 months.

(Added 75 of 1995 s. 7)

(5)-(6)

(Repealed 12 of 2015 s. 67)

(7)

In this section, a reference to this Ordinance means this Ordinance as amended from time to time.

(Added 12 of 2015 s. 67)

(Amended E.R. 2 of 2012)

53B.

Disclosure of information

(1)

Subject to subsection (2), and notwithstanding section 53A, the Authority may disclose information to an authority in a place outside Hong Kong where—

(Amended 12 of 2015 s. 2)

(a)

that authority performs functions in that place corresponding to the functions of—

(Amended 12 of 2015 s. 68)

(i)

the Authority; or

(Amended 12 of 2015 s. 2)

(ii)

an authorized statutory office within the meaning of section 53A(3B); and

(b)

in the opinion of the Authority—

(Amended 12 of 2015 s. 2)

(i)

that authority is subject to adequate secrecy provisions in that place; and

(ii)

it is desirable or expedient that the information should be so disclosed in the interests of existing or potential policy holders or the public interest; or

(iii)

such disclosure will enable or assist the recipient of the information to perform his functions and it is not contrary to the interests of existing or potential policy holders or the public interest that the information should be so disclosed.

(Replaced 75 of 1995 s. 8. Amended 12 of 2015 s. 68)

(1A)

Without limiting the generality of subsection (1), the information so disclosed to an authority in a place outside Hong Kong by the Authority may include information on matters relating to the affairs of an insurer—

(Amended 12 of 2015 s. 2)

(a)

which is incorporated, or which has its principal place of business, in that place;

(b)

which is incorporated in or outside Hong Kong and which is a subsidiary or associate of an insurer which is incorporated, or which has its principal place of business, in that place; or

(c)

which is incorporated in Hong Kong or is a re-domiciled company, and which has, or is proposing to establish, in that place—

(Amended 14 of 2025 s. 136)

(i)

an office or agency for the purpose of carrying on any class of insurance business in or from that place; or

(ii)

a subsidiary or associate which is or would be subject to supervision by that authority.

(Added 75 of 1995 s. 8)

(1B)

Without limiting subsection (1), the information so disclosed to an authority in a place outside Hong Kong by the Authority may include information on matters relating to the affairs of a licensed insurance intermediary.

(Added 12 of 2015 s. 68)

(1C)

Subject to subsection (2) and despite section 53A, the Authority may disclose information to an authority in a place outside Hong Kong if—

(Amended 23 of 2016 s. 240)

(a)

that authority performs functions in that place broadly comparable to those of a resolution authority in Hong Kong; and

(b)

in the opinion of the Authority—

(Amended 23 of 2016 s. 240)

(i)

that authority is subject to adequate secrecy provisions in that place; and

(ii)

the information is necessary to enable or assist that authority to perform functions in that place broadly comparable to those of a resolution authority in Hong Kong.

(Added 23 of 2016 s. 208)

(1D)

Subject to subsection (2) and despite section 53A, the Authority may disclose information to an authority in a place outside Hong Kong if—

(a)

that authority—

(i)

is an involved supervisor as defined by section 95A(1); or

(ii)

performs functions in that place broadly comparable to those of a resolution authority in Hong Kong; and

(b)

in the opinion of the Authority—

(i)

that authority is subject to adequate secrecy provisions in that place; and

(ii)

the disclosure of the information is necessary to enable or assist the Authority to perform its functions under Part XIA.

(Added 18 of 2020 s. 9)

(2)

The Authority shall not provide any information under this section relating to the affairs of any individual policy holder of an insurer.

(Amended 12 of 2015 s. 2)

(3)

This section shall apply to Lloyd’s as it applies to insurers.

53C.

Examination by external authorities

(1)

Any office or agency of an insurer, carrying on any class of insurance business in or from Hong Kong, shall permit the insurance supervisory authority of a place outside Hong Kong to examine its books, accounts and transactions in Hong Kong if—

(a)

that insurer—

(i)

is incorporated, or has its principal place of business, in that place; or

(ii)

is incorporated in or outside Hong Kong and is a subsidiary or associate of an insurer incorporated, or which has its principal place of business, in that place; and

(b)

that insurance supervisory authority has, subject to subsection (2), the approval of the Authority to carry out such an examination.

(1A)

A licensed insurance agency must permit an insurance supervisory authority of a place outside Hong Kong to examine its books, accounts and transactions in Hong Kong if—

(a)

that agency—

(i)

is incorporated, or has its principal place of business, in that place; or

(ii)

is incorporated in or outside Hong Kong and is a subsidiary or associate of an insurance agency incorporated, or which has its principal place of business, in that place; and

(b)

that insurance supervisory authority has, subject to subsection (2), the approval of the Authority to carry out such an examination.

(Added 12 of 2015 s. 69)

(1B)

A licensed insurance broker company must permit an insurance supervisory authority of a place outside Hong Kong to examine its books, accounts and transactions in Hong Kong if—

(a)

that company—

(i)

is incorporated, or has its principal place of business, in that place; or

(ii)

is incorporated in or outside Hong Kong and is a subsidiary or associate of an insurance broker company incorporated, or which has its principal place of business, in that place; and

(b)

that insurance supervisory authority has, subject to subsection (2), the approval of the Authority to carry out such an examination.

(Added 12 of 2015 s. 69)

(2)

The Authority shall not give an approval referred to in subsections (1)(b), (1A)(b) and (1B)(b) except where in its opinion it is desirable or expedient that the examination concerned should be carried out in the interests of existing or potential policy holders or in the public interest.

(Amended 12 of 2015 s. 69)

(3)

This section shall apply to Lloyd’s as it applies to insurers.

(Amended 12 of 2015 s. 2)

53D.

Communication by prescribed person with Authority

(Amended 12 of 2015 s. 2)

(1)

No duty which a prescribed person may be subject to shall be regarded as contravened by reason of his communicating in good faith to the Authority, whether or not in response to a request made by the Authority, any information or opinion on a matter—

(Amended 12 of 2015 s. 2)

(a)

of which he becomes aware in his capacity as a prescribed person (including, in the case of a former auditor, former actuary or former accountant referred to in the definition of prescribed person, a matter of which he became aware when he was an auditor, actuary or accountant, as the case may be, referred to in that definition); and

(b)

which is relevant to any function of the Authority under this Ordinance.

(Amended 12 of 2015 s. 2)

(2)

For the avoidance of doubt, it is hereby declared that a matter referred to in subsection (1) may be a matter which relates to a person other than—

(Amended 12 of 2015 s. 70)

(a)

an authorized insurer;

(b)

a former insurer;

(c)

a licensed insurance broker company;

(d)

a former licensed insurance broker company;

(Amended 18 of 2020 s. 10)

(e)

a person who was formerly an authorized insurance broker within the meaning of the pre-amended Ordinance;

(Added 12 of 2015 s. 70. Amended 18 of 2020 s. 10)

(f)

a designated insurance holding company (or any other member of its supervised group); or

(Added 18 of 2020 s. 10)

(g)

a former designated insurance holding company (or any other member of its supervised group).

(Added 18 of 2020 s. 10)

(Added 59 of 1993 s. 15)

53E.

Prescribed person to send report directly to Authority in certain cases relating to authorized insurers

(Amended 12 of 2015 ss. 2 & 70)

(1)

Where a prescribed person (other than an actuary or former actuary), during the discharge of his duties in that capacity in respect of the authorized insurer concerned (including a former insurer), becomes aware of any matter (including, in the case of a former auditor or former accountant referred to in the definition of prescribed person, a matter of which he became aware when he was an auditor or accountant, as the case may be, referred to in that definition) which in his opinion adversely affects the financial condition of the insurer to a material extent, the prescribed person shall, as soon as practicable thereafter, send to the Authority a report in writing of the matter.

(Amended 12 of 2015 s. 71)

(2)

Where a prescribed person (other than an auditor, former auditor, accountant or former accountant), during the discharge of the person’s duties in that capacity in respect of the authorized insurer concerned (including a former insurer), becomes aware of any situation (including, in the case of a former actuary referred to in the definition of prescribed person, a situation of which the person became aware when the person was an actuary referred to in that definition) which in the person’s opinion—

(Amended 12 of 2015 s. 71; 20 of 2023 s. 72)

(a)

creates a material risk that a fund or sub-fund maintained by the insurer under section 21B may be insufficient to meet the liabilities attributable to that fund or sub-fund; or

(b)

has resulted or may result in the insurer failing to satisfy an obligation in respect of its long term business to which it is or was subject by virtue of this Ordinance,

the person must, as soon as practicable after becoming so aware, send to the Authority a report in writing of the situation.

(3)

Where a prescribed person, during the discharge of the person’s duties in that capacity in respect of the authorized insurer concerned (including a former insurer), becomes aware of evidence (including, in the case of a former auditor, former actuary or former accountant referred to in the definition of prescribed person, evidence of which the person became aware when the person was an auditor, actuary or accountant, as the case may be, referred to in that definition)—

(Amended 12 of 2015 s. 71; 20 of 2023 s. 72)

(a)

of a failure by the insurer to comply with any conditions imposed under section 8(1)(a) or 8A(1)(a);

(Amended 17 of 2020 s. 18)

(b)

that there exists a ground on which the Authority would be prohibited by section 8(3)(a), (b), (d) or (f) from authorizing the insurer if the insurer were to make application in that behalf;

(c)

of a failure by the insurer to comply with section 21B, 22, 23, 25AA, 25AAB or 25AAE; or

(d)

of any default of the insurer in complying with any requirement under section 27, 28, 29, 30, 31, 32, 32A, 33, 34 or 35(1),

the person must, as soon as practicable after becoming so aware, send to the Authority a report in writing of the failure, ground or default.

(Added 59 of 1993 s. 15. Amended 12 of 2015 s. 2; 20 of 2023 s. 72)

53F.

Prescribed person to send report directly to Authority in certain cases relating to licensed insurance broker companies, etc.

(1)

This section applies if—

(a)

a prescribed person who is an auditor of a specified broker becomes aware of evidence of a failure by the specified broker to comply with the specified rules when the person discharges duties in the capacity as an auditor of the specified broker; or

(b)

a prescribed person who is a former auditor of a specified broker becomes aware of evidence of a failure by the specified broker to comply with the specified rules when the person discharged duties in the capacity as a former auditor of the specified broker.

(2)

The prescribed person must, as soon as practicable after becoming aware of the evidence, send to the Authority a report in writing of the failure.

(3)

In subsection (1)(b), a reference to evidence includes evidence of which the prescribed person became aware when the person was an auditor of the specified broker.

(4)

In this section—

specified broker

(

指明經紀

) means—

(a)

a licensed insurance broker company;

(b)

a former licensed insurance broker company; or

(c)

a person who was formerly an authorized insurance broker within the meaning of the pre-amended Ordinance;

specified rules

(

指明規則

)—

(a)

in relation to a licensed insurance broker company or a former licensed insurance broker company, means rules made under section 129 that set out the requirements—

(i)

in relation to the capital and net assets of a licensed insurance broker company;

(ii)

in relation to the professional indemnity insurance taken out by a licensed insurance broker company;

(iii)

in relation to the keeping of separate client accounts by a licensed insurance broker company; and

(iv)

in relation to the keeping of proper books and accounts by a licensed insurance broker company;

(b)

in relation to a person who was formerly an authorized insurance broker within the meaning of the pre-amended Ordinance, means the minimum requirements specified by the former authority under the pre-amended Ordinance—

(i)

in relation to the capital and net assets of an authorized insurance broker;

(ii)

in relation to the professional indemnity insurance taken out by an authorized insurance broker;

(iii)

in relation to the keeping of separate client accounts by an authorized insurance broker; and

(iv)

in relation to the keeping of proper books and accounts by an authorized insurance broker.

(Added 12 of 2015 s. 72)

53G.

Prescribed person to send report directly to Authority in certain cases relating to designated insurance holding companies

(1)

This section applies if a prescribed person, when discharging the person’s duties in that capacity in relation to the supervised group of a specified company, becomes aware of—

(a)

a matter that, in the person’s opinion, adversely affects the financial condition of the group to a material extent; or

(b)

evidence of a failure by the company to comply with a specified requirement.

(2)

The prescribed person must, as soon as practicable after becoming aware of the matter or evidence, send to the Authority a written report of the matter or failure.

(3)

In subsection (1), a reference to a matter or evidence includes a matter or evidence of which the prescribed person became aware when the person was a prescribed person in relation to the supervised group of the specified company.

(4)

In this section—

prescribed person

(

訂明人士

) means a person who falls within paragraph (d) or (e) of the definition of prescribed person in section 2(1);

specified company

(

指明公司

) means—

(a)

a designated insurance holding company; or

(b)

a former designated insurance holding company;

specified requirement

(

指明規定

), in relation to a specified company, means—

(a)

section 95H(1);

(b)

section 95ZI(3) or (5);

(c)

section 95ZJ(1); or

(d)

a requirement imposed by the Authority under section 95ZO, 95ZP, 95ZQ or 95ZR on the company.

(Added 18 of 2020 s. 11)

Part IX

(Repealed 12 of 2015 s. 73)

54.

(Repealed 12 of 2015 s. 73)

55.

(Repealed 12 of 2015 s. 73)

55A.

(Repealed 12 of 2015 s. 73)

55B.

(Repealed 12 of 2015 s. 73)

56.

(Repealed 12 of 2015 s. 73)

56A.

(Repealed 12 of 2015 s. 73)

57.

(Repealed 12 of 2015 s. 73)

58.

(Repealed 12 of 2015 s. 73)

58A.

(Repealed 29 of 1997 s. 9)

59.

(Repealed 12 of 2015 s. 73)

60.

(Repealed 12 of 2015 s. 73)

61.

(Repealed 12 of 2015 s. 73)

62.

(Omitted as spent—E.R. 2 of 2014)

63.

(Repealed 12 of 2015 s. 73)

64.

(Repealed 35 of 1996 s. 31)

Part IXA

Certain Contracts of Insurance to be Void

(Part IXA added 29 of 1997 s. 12)

(Format changes—E.R. 4 of 2017)

64A.

Interpretation (Part IXA)

(1)

In this Part—

guardian

(

監護人

) means a guardian appointed under or acting by virtue of the Guardianship of Minors Ordinance (Cap. 13);

parent

(

父母

), in relation to a minor, means father or mother.

(2)

For the purpose of this Part, a parent of a minor, or a guardian of a ward under 18 years of age, shall be deemed to have an interest in the life of the minor or the ward, as the case may be.

64B.

No contract of insurance to be made without interest

(1)

No contract of insurance shall be entered into on the life of any person or on any other event—

(a)

if the person for whose use or benefit or on whose account the contract is to be entered into has no interest; or

(b)

by way of gaming or wagering.

(2)

A contract of insurance entered into in contravention of subsection (1) is void by reason of that contravention.

64C.

No contract of insurance on lives without inserting the persons’ names, etc.

(1)

Subject to subsections (3) and (4), no contract of insurance shall be entered into on the life of any person or other event without inserting in the contract the name of the person—

(a)

interested in the life or event; or

(b)

for whose use or benefit or on whose account the contract is entered into.

(2)

A contract of insurance entered into in contravention of subsection (1) is void by reason of that contravention.

(3)

Subsections (1) and (2) shall not invalidate a contract of insurance for the benefit of unnamed persons from time to time falling within a specified class or description if the class or description is stated in the contract with sufficient particularity to make it possible to establish the identity of all persons who at any given time are entitled to benefit under the contract.

(4)

Subsection (3) applies to contracts of insurance effected before the commencement of the Insurance Companies (Amendment) Ordinance 1985 (8 of 1985) as well as to contracts of insurance effected thereafter.

64D.

Recoverable amount

Where the insured under a contract of insurance has an interest in a life or event, no greater sum shall be recovered from the insurer under the contract than the amount of value of the interest of the insured in that life or event.

64E.

Not to extend to ships, etc.

It is hereby declared that the provisions of this Part shall not extend, or be construed to extend, to contracts of insurance bona fide made by any person on ships, goods or merchandise.

Part X

Insurance Intermediaries

(Part X added 76 of 1994 s. 4)

(Format changes—E.R. 4 of 2017)

Division 1

Preliminary

(Division 1 added 12 of 2015 s. 74)

64F.

Interpretation of Part X

In this Part—

agency agreement

(

代理協議

) means an agreement entered into between an authorized insurer and a licensed insurance agency or licensed individual insurance agent under which the licensed insurance agency or licensed individual insurance agent is appointed to carry on regulated activities as an agent of the insurer;

business record

(

業務紀錄

), in relation to a licensed insurance intermediary, means a record or document relating to a regulated activity carried on by the intermediary;

controller

(

控權人

)—

(a)

in relation to a sole proprietorship—

(i)

means an individual who ultimately owns or controls the carrying on of regulated activities by the sole proprietorship; or

(ii)

if the sole proprietor is acting on behalf of another person, means the other person;

(b)

in relation to a partnership, means an individual who—

(i)

is entitled to or controls, directly or indirectly, not less than a 15% share of the capital or profits of the partnership;

(ii)

is, directly or indirectly, entitled to exercise or control the exercise of not less than 15% of the voting rights in the partnership; or

(iii)

exercises ultimate control over the management of the partnership; or

(c)

in relation to a company, means a person who—

(i)

owns or controls, directly or indirectly, including through a trust or bearer share holding, not less than 15% of the issued share capital of the company;

(ii)

is, directly or indirectly, entitled to exercise or control the exercise of not less than 15% of the voting rights at general meetings of the company; or

(iii)

exercises ultimate control over the management of the company;

inspector

(

查察員

) means a person appointed as an inspector under section 64ZZF(6);

investigator

(

調查員

) means a person directed or appointed by the Authority under section 64ZZH(1) to investigate any matter;

licence

(

牌照

)—

(a)

in relation to a licensed insurance agency—means an insurance agency licence granted under section 64U or renewed under section 64ZV;

(b)

in relation to a licensed individual insurance agent—means an individual insurance agent licence granted under section 64W or renewed under section 64ZV;

(c)

in relation to a licensed technical representative (agent)—means a technical representative (agent) licence granted under section 64Y or renewed under section 64ZV;

(d)

in relation to a licensed insurance broker company—means an insurance broker company licence granted under section 64ZA or renewed under section 64ZV; or

(e)

in relation to a licensed technical representative (broker)—means a technical representative (broker) licence granted under section 64ZC or renewed under section 64ZV;

licensee

(

持牌人

), in relation to a licence, means the holder of the licence.

Division 2

Restrictions

(Division 2 added 12 of 2015 s. 74)

64G.

Restrictions on carrying on regulated activities

(1)

A person must not carry on a regulated activity—

(a)

in the course of the person’s business or employment; or

(b)

for reward.

(2)

A person must not hold out that the person—

(a)

is carrying on a regulated activity in the course of the person’s business or employment; or

(b)

is carrying on a regulated activity for reward.

(3)

This section does not—

(a)

prohibit a licensed insurance agency from—

(i)

carrying on regulated activities as an agent of an authorized insurer by which the licensed insurance agency is appointed; or

(ii)

holding out that the licensed insurance agency carries on regulated activities as such an agent;

(b)

prohibit a licensed individual insurance agent from—

(i)

carrying on regulated activities as an agent of an authorized insurer by which the licensed individual insurance agent is appointed; or

(ii)

holding out that the licensed individual insurance agent carries on regulated activities as such an agent;

(c)

prohibit a licensed technical representative (agent) from—

(i)

carrying on regulated activities as an agent of a licensed insurance agency by which the licensed technical representative (agent) is appointed; or

(ii)

holding out that the licensed technical representative (agent) carries on regulated activities as such an agent;

(d)

prohibit a licensed insurance broker company from—

(i)

carrying on regulated activities specified in section 1(a) of Part 1 of Schedule 1A as an agent of a policy holder or potential policy holder;

(ii)

holding out that the licensed insurance broker company carries on regulated activities specified in section 1(a) of Part 1 of Schedule 1A as such an agent;

(iii)

carrying on regulated activities specified in section 1(b), (c) and (d) of Part 1 of Schedule 1A; or

(iv)

holding out that the licensed insurance broker company carries on regulated activities specified in section 1(b), (c) and (d) of Part 1 of Schedule 1A; or

(e)

prohibit a licensed technical representative (broker) from—

(i)

carrying on regulated activities as an agent of a licensed insurance broker company by which the licensed technical representative (broker) is appointed; or

(ii)

holding out that the licensed technical representative (broker) carries on regulated activities as such an agent.

(4)

A person who, without reasonable excuse, contravenes subsection (1) or (2) commits an offence and is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years and, in the case of a continuing offence, to a further fine of $20,000 for each day during which the offence continues; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months and, in the case of a continuing offence, to a further fine of $2,000 for each day during which the offence continues.

(5)

This section is subject to section 123.

64H.

Application of section 64G in relation to marketing insurance services outside Hong Kong

(1)

If a person actively markets to the public, from a place outside Hong Kong, insurance services that the person provides, the person is to be regarded as holding out that the person is carrying on a regulated activity for the purposes of section 64G(2).

(2)

Subsection (1) applies regardless of whether the insurance services are marketed by the person or someone on behalf of the person.

(3)

In this section—

insurance services

(

保險服務

) means services that would constitute a regulated activity if the services were provided in Hong Kong.

64I.

Restrictions in relation to number of authorized insurers of each licensed insurance agency, etc.

(1)

A person must not, at any time, be appointed as a licensed insurance agency or licensed individual insurance agent in carrying on a regulated activity for more than the maximum number of authorized insurers that are prescribed by rules made under section 129.

(2)

A person who contravenes subsection (1) commits an offence and is liable to a fine at level 6.

(3)

If an authorized insurer knows that a person is appointed as a licensed insurance agency or licensed individual insurance agent in carrying on regulated activities for the prescribed maximum number or more of authorized insurers, that insurer must not appoint that person to carry on a regulated activity as an agent of the insurer.

(4)

An authorized insurer which contravenes subsection (3) commits an offence and is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6.

64J.

Restrictions in relation to personnel of licensed insurance agencies

(1)

This section applies to a person who is—

(a)

a proprietor or a partner of a licensed insurance agency; or

(b)

a director or an employee of a licensed insurance agency who manages or controls any matter relating to a regulated activity of the agency.

(2)

The person must not also be—

(a)

a proprietor or a partner of another licensed insurance agency;

(b)

a licensed individual insurance agent;

(c)

a licensed technical representative (agent) of another licensed insurance agency;

(d)

a licensed technical representative (broker);

(e)

a director or an employee of another licensed insurance agency who manages or controls any matter relating to a regulated activity of that other agency; or

(f)

a director or an employee of a licensed insurance broker company who manages or controls any matter relating to a regulated activity of that company.

(3)

A person who contravenes subsection (2) commits an offence and is liable to a fine at level 6 and to imprisonment for 6 months.

64K.

Restrictions in relation to personnel of licensed insurance broker companies

(1)

This section applies to a person who—

(a)

is a director or an employee of a licensed insurance broker company; and

(b)

manages or controls any matter relating to a regulated activity of the company.

(2)

The person must not also be—

(a)

a proprietor or a partner of a licensed insurance agency;

(b)

a licensed individual insurance agent;

(c)

a licensed technical representative (agent); or

(d)

a director or an employee of a licensed insurance agency who manages or controls any matter relating to a regulated activity of the agency.

(3)

A person who contravenes subsection (2) commits an offence and is liable to a fine at level 6 and to imprisonment for 6 months.

64L.

Restrictions in relation to licensed technical representatives (agent)

(1)

A person who is a licensed technical representative (agent) of a licensed insurance agency must not also be a licensed technical representative (agent) of another licensed insurance agency.

(2)

A person who is a licensed technical representative (agent) must not carry on regulated activities in a line of business unless the licensed insurance agency by which the person is appointed is also licensed to carry on regulated activities in that line of business.

64M.

Restrictions in relation to licensed technical representatives (broker)

A person who is a licensed technical representative (broker) must not carry on regulated activities in a line of business unless the licensed insurance broker company by which the person is appointed is also licensed to carry on regulated activities in that line of business.

64N.

Contracts of insurance made through persons other than licensed insurance intermediaries, etc.

(1)

An authorized insurer must not enter into a contract of insurance through another person in Hong Kong unless—

(a)

that person is—

(i)

a licensed insurance agency or a licensed individual insurance agent appointed by the insurer; or

(ii)

a licensed insurance broker company; or

(b)

that person’s duties only involve clerical or administrative duties.

(2)

An authorized insurer must not accept a referral of insurance business from another person in Hong Kong unless—

(a)

that person is—

(i)

a licensed insurance agency or a licensed individual insurance agent appointed by the insurer; or

(ii)

a licensed insurance broker company; or

(b)

that person’s duties only involve clerical or administrative duties.

(3)

If an authorized insurer enters into a contract of insurance in contravention of subsection (1), the contract, at the option of the policy holder—

(a)

is enforceable against the insurer by the policy holder despite the contravention; or

(b)

is void because of the contravention.

(4)

A policy holder who under subsection (3)(b) opts to void a contract of insurance before the expiry of the contract is entitled to recover any consideration paid by the policy holder under the contract.

(5)

An authorized insurer which contravenes subsection (1) or (2) commits an offence and is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

Division 3

Licensing

(Division 3 added 12 of 2015 s. 74)

Subdivision 1

Register and Maintenance of Register

64O.

Register of licensed insurance intermediaries

(1)

The Authority must keep a register of licensed insurance intermediaries, in a form it thinks fit, containing—

(a)

the name or names, and the reference number assigned by the Authority, of each licensed insurance intermediary, and if applicable, the name of each of its responsible officers;

(b)

the business address of each licensed insurance intermediary;

(c)

the conditions of the licence of each licensed insurance intermediary;

(d)

the conditions of approval of each responsible officer;

(e)

the period for which the licence of each licensed insurance intermediary is valid;

(f)

in relation to each licensed insurance agency—

(i)

the name of each of the authorized insurers by which the licensed insurance agency is appointed;

(ii)

the date of appointment; and

(iii)

the date on which the appointment is terminated (if applicable);

(g)

in relation to each licensed individual insurance agent—

(i)

the name of each of the authorized insurers by which the licensed individual insurance agent is appointed;

(ii)

the date of appointment; and

(iii)

the date on which the appointment is terminated (if applicable);

(h)

in relation to each licensed technical representative (agent)—

(i)

the name of the licensed insurance agency by which the licensed technical representative (agent) is appointed;

(ii)

the date of appointment;

(iii)

the date on which the appointment is terminated (if applicable); and

(iv)

information on whether the licensed technical representative (agent) is a responsible officer of the licensed insurance agency;

(i)

in relation to each licensed technical representative (broker)—

(i)

the name of each of the licensed insurance broker company by which the licensed technical representative (broker) is appointed;

(ii)

the date of appointment;

(iii)

the date on which the appointment is terminated (if applicable); and

(iv)

information on whether the licensed technical representative (broker) is a responsible officer of the licensed insurance broker company;

(j)

the line or lines of business which each licensed insurance intermediary may carry on;

(k)

a record of every disciplinary action (except a private reprimand) taken by a specified authority against any licensed insurance intermediary or responsible officer in the last 5 years, and if a suspension is involved, the period of the suspension;

(l)

if a licence is suspended under this Part, a note to that effect;

(m)

if a licensed insurance broker company notifies the Authority of cessation of carrying on regulated activities under section 64T, a note to that effect; and

(n)

any other particulars that are prescribed by rules made under section 129.

(2)

A person may, at all reasonable times—

(a)

if the register is kept in a documentary form—inspect the register free of charge; or

(b)

if the register is kept otherwise than in a documentary form—inspect a reproduction in a legible form of any information recorded in the register free of charge.

(3)

A person may, at all reasonable times and on payment of a prescribed fee, obtain—

(a)

a copy of an entry in, or extract of, the register; or

(b)

a copy of the entry or extract, certified by an authorized officer of the Authority as a true copy of the entry or extract.

(4)

A right under subsection (2) or (3) is only exercisable for enabling a person—

(a)

to ascertain whether the person is dealing with a licensed insurance intermediary or a responsible officer in matters of or connected with any regulated activity; or

(b)

to ascertain the particulars of—

(i)

the licensing of a person as a licensed insurance intermediary; or

(ii)

the approval of an individual as a responsible officer.

(5)

In any legal proceedings—

(a)

a document purporting to be a copy of an entry in, or extract of, the register, and purporting to be certified by an authorized officer of the Authority as a true copy of the entry or extract, is admissible in evidence on its production without further proof; and

(b)

unless there is evidence to the contrary, on being admitted in evidence under paragraph (a), the document—

(i)

is presumed to be certified by an authorized officer of the Authority;

(ii)

is presumed to be a true copy of the entry or extract; and

(iii)

is proof of its contents.

(6)

The Authority must, as far as practicable, make the register available to any person for inspection free of charge on the Internet.

(7)

In this section—

*

commencement date

(

生效日期

) means the date on which section 74 of the Amendment Ordinance comes into operation;

specified authority

(

指明當局

) means—

(a)

in relation to a disciplinary action taken on or after the commencement date—the Authority; or

(b)

in relation to a disciplinary action taken before the commencement date—

(i)

the Insurance Agents Registration Board set up by the Hong Kong Federation of Insurers; or

(ii)

a body of insurance brokers approved under section 70 of the pre-amended Ordinance.

Editorial Note:

* Commencement date: 23 September 2019.

64P.

Duty to notify Authority of change in particulars

(1)

This section applies if there is a change in any of the particulars specified in subsection (2) of a licensed insurance intermediary or a responsible officer of a licensed insurance intermediary after the particulars are provided by the licensed insurance intermediary for a licence application.

(2)

The particulars are—

(a)

name;

(b)

business or residential address;

(c)

telephone number;

(d)

electronic mail address; and

(e)

any other particulars that are prescribed by rules made under section 129.

(2A)

If a licensed insurance intermediary that is a non-Hong Kong company later becomes a re-domiciled company, the licensed insurance intermediary must notify the Authority in writing of such fact within 14 days after it becomes a re-domiciled company.

(Added 14 of 2025 s. 137)

(3)

The licensed insurance intermediary must notify the Authority in writing of any change of particulars within 14 days after the date on which the change takes place.

(4)

A notification under subsection (3) must be accompanied by a prescribed fee.

(5)

The Authority must, as soon as practicable after receiving a notification under subsection (3), amend any relevant particulars in the register kept under section 64O.

(6)

A licensed insurance intermediary who, without reasonable excuse, contravenes subsection (3) commits an offence and is liable to a fine at level 5.

64Q.

Duty to notify Authority of appointment

(1)

At least 14 days before an authorized insurer appoints a licensed insurance agency to carry on regulated activities in one or more lines of business as an agent of the insurer, the insurer must notify the Authority in writing of the intended appointment.

(2)

At least 14 days before an authorized insurer appoints a licensed individual insurance agent to carry on regulated activities in one or more lines of business as an agent of the insurer, the insurer must notify the Authority in writing of the intended appointment.

(3)

At least 14 days before a licensed insurance agency appoints a licensed technical representative (agent) to carry on regulated activities in one or more lines of business as an agent of the agency, the agency must notify the Authority in writing of the intended appointment.

(4)

At least 14 days before a licensed insurance broker company appoints a licensed technical representative (broker) to carry on regulated activities in one or more lines of business as an agent of the company, the company must notify the Authority in writing of the intended appointment.

(5)

The notification must be accompanied by—

(a)

a prescribed fee; and

(b)

the particulars that are prescribed by rules made under section 129.

(6)

The Authority must, after receiving a notification under subsection (1), (2), (3) or (4), update the register kept under section 64O accordingly unless the Authority is of the view that—

(a)

in relation to subsection (1), the licensed insurance agency has not complied with, or will be unable to comply with, the provisions of this Ordinance relating to a licensed insurance agency;

(b)

in relation to subsection (2), the licensed individual insurance agent has not complied with, or will be unable to comply with, the provisions of this Ordinance relating to a licensed individual insurance agent;

(c)

in relation to subsection (3), the licensed technical representative (agent) has not complied with, or will be unable to comply with, the provisions of this Ordinance relating to a licensed technical representative (agent); or

(d)

in relation to subsection (4), the licensed technical representative (broker) has not complied with, or will be unable to comply with, the provisions of this Ordinance relating to a licensed technical representative (broker).

(7)

A person who contravenes subsection (1), (2), (3) or (4) commits an offence and is liable to a fine at level 5.

64R.

Duty to notify Authority of termination of appointment

(1)

Within 14 days after the date on which an authorized insurer terminates the appointment of a licensed insurance agency or licensed individual insurance agent, the insurer must notify the Authority in writing of the termination.

(2)

Within 14 days after the date on which a licensed insurance agency terminates the appointment of a licensed technical representative (agent), the agency must notify the Authority in writing of the termination.

(3)

Within 14 days after the date on which a licensed insurance broker company terminates the appointment of a licensed technical representative (broker), the company must notify the Authority in writing of the termination.

(4)

Within 14 days after the date on which the appointment of a responsible officer of a licensed insurance agency or licensed insurance broker company is terminated, the agency or company must notify the Authority in writing of the termination.

(5)

The Authority must, as soon as practicable after receiving a notification under subsection (1), (2), (3) or (4), amend any relevant particulars in the register kept under section 64O.

(6)

A person who contravenes subsection (1), (2), (3) or (4) commits an offence and is liable to a fine at level 5.

64S.

Application for varying lines of business

(1)

A licensed insurance intermediary may apply to the Authority for the approval of the variation of a line of business specified in the licence of the intermediary.

(2)

The Authority may approve the variation of a line of business of the applicant—

(a)

on an application made in the manner specified by the Authority; and

(b)

on payment of a prescribed fee.

(3)

The application under subsection (1) must be accompanied by the particulars that are prescribed by rules made under section 129.

(4)

The Authority must not approve the variation unless it is satisfied that the applicant is a fit and proper person to carry on regulated activities in the line or lines of business after the variation.

(5)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

(7)

The Authority must, as soon as practicable after granting the approval under subsection (2), amend any relevant particulars in the register kept under section 64O.

64T.

Duty to notify Authority of cessation of carrying on of regulated activities by licensed insurance broker companies

(1)

At least 3 months before a licensed insurance broker company ceases to carry on regulated activities, the company must notify the Authority in writing of the intention to do so and the intended date of cessation.

(2)

A licensed insurance broker company which ceases to carry on regulated activities must prepare—

(a)

an auditor’s report on the financial statements which are to be made up to (and including) the date of cessation;

(b)

an auditor’s report stating whether the auditor is of the opinion that the company has, until the date of cessation, continued to comply with rules made under section 129 that set out the requirements—

(i)

in relation to the capital and net assets of a licensed insurance broker company;

(ii)

in relation to the professional indemnity insurance taken out by a licensed insurance broker company;

(iii)

in relation to the keeping of separate client accounts by a licensed insurance broker company; and

(iv)

in relation to the keeping of proper books and accounts by a licensed insurance broker company; and

(c)

any other documents that are prescribed by rules made under section 129.

(3)

A licensed insurance broker company must submit to the Authority the documents specified in subsection (2) not later than 6 months after the date of cessation.

(4)

The Authority must, as soon as practicable after receiving a notification under subsection (1), amend any relevant particulars in the register kept under section 64O.

(5)

A licensed insurance broker company which, without reasonable excuse, contravenes subsection (1), (2) or (3) commits an offence and is liable to a fine at level 5.

Subdivision 2

First Application

64U.

Grant of licence—insurance agency

(1)

A sole proprietor, partnership or company may apply to the Authority for an insurance agency licence to carry on regulated activities in one or more lines of business, as an agent of any authorized insurer.

(2)

For a partnership, the application for an insurance agency licence may only be made by a partner authorized by the partnership on behalf of the partnership and, if the licence is granted, it is to be expressed to be granted to that partner on behalf of the partnership.

(3)

An application made under subsection (1) must be accompanied by either—

(a)

both of the following—

(i)

an application made by an individual under section 64Y for a technical representative (agent) licence;

(ii)

an application made by the applicant under section 64ZE for the approval of the individual as a responsible officer of the applicant; or

(b)

an application made by the applicant under section 64ZE for the approval of a licensed technical representative (agent) as a responsible officer of the applicant.

(4)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may grant to the applicant an insurance agency licence to carry on regulated activities in one or more lines of business specified in the licence, as an agent of any authorized insurer.

(5)

The Authority must not grant the licence unless—

(a)

it is satisifed that—

(i)

if the applicant is a sole proprietor—

(A)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(B)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(ii)

if the applicant is a partnership—

(A)

each partner of the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(B)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business; or

(iii)

if the applicant is a company—

(A)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(B)

each director of the applicant is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business; and

(C)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(b)

it is satisfied that the applicant is appointed as an agent by at least one authorized insurer;

(c)

it is satisfied that the applicant is neither the holder of a licence granted under section 64W, 64Y, 64ZA or 64ZC nor applying for such a licence; and

(d)

it is satisfied that either—

(i)

both of the following—

(A)

an accompanying application is made for subsection (3)(a)(i) and the criteria for the grant of licence under section 64Y(3) are satisfied;

(B)

an accompanying application is made for subsection (3)(a)(ii) and the criteria for the approval under section 64ZE(4) are satisfied; or

(ii)

an accompanying application is made for subsection (3)(b) and the criteria for the approval under section 64ZE(4) are satisfied.

(6)

If the Authority grants an application made under subsection (1), the Authority must also grant the accompanying applications made for subsection (3).

(7)

If the Authority rejects an application made under subsection (1), the Authority must also reject the accompanying applications made for subsection (3).

(8)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(9)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64V.

Validity of insurance agency licence

A licence granted under section 64U is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority, beginning on the date on which it is granted.

64W.

Grant of licence—individual insurance agent

(1)

An individual may apply to the Authority for an individual insurance agent licence to carry on regulated activities in one or more lines of business, as an agent of any authorized insurer.

(2)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may grant to the applicant an individual insurance agent licence to carry on regulated activities in one or more lines of business specified in the licence, as an agent of any authorized insurer.

(3)

The Authority must not grant the licence unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(b)

the applicant is appointed as an agent by at least one authorized insurer; and

(c)

the applicant is neither the holder of a licence granted under section 64U, 64Y or 64ZC nor applying for such a licence.

(4)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(5)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64X.

Validity of individual insurance agent licence

A licence granted under section 64W is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority, beginning on the date on which it is granted.

64Y.

Grant of licence—technical representative (agent)

(1)

An individual may apply to the Authority for a technical representative (agent) licence to carry on regulated activities in one or more lines of business, as an agent of any licensed insurance agency.

(2)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may grant to the applicant a technical representative (agent) licence to carry on regulated activities in one or more lines of business specified in the licence, as an agent of any licensed insurance agency.

(3)

The Authority must not grant the licence unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(b)

the applicant is appointed as an agent by—

(i)

a licensed insurance agency; or

(ii)

a person who applies under section 64U for an insurance agency licence; and

(c)

the applicant is neither the holder of a licence granted under section 64U, 64W or 64ZC nor applying for such a licence.

(4)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(5)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64Z.

Validity of technical representative (agent) licence

A licence granted under section 64Y is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority, beginning on the date on which it is granted.

64ZA.

Grant of licence—insurance broker company

(1)

A company may apply to the Authority for an insurance broker company licence to carry on—

(a)

regulated activities specified in section 1(a) of Part 1 of Schedule 1A in one or more lines of business, as an agent of any policy holder or potential policy holder; and

(b)

regulated activities specified in section 1(b), (c) and (d) of Part 1 of Schedule 1A in one or more lines of business.

(2)

An application made under subsection (1) must be accompanied by either—

(a)

both of the following—

(i)

an application made by an individual under section 64ZC for a technical representative (broker) licence;

(ii)

an application made by the applicant under section 64ZF for the approval of the individual as a responsible officer of the applicant; or

(b)

an application made by the applicant under section 64ZF for the approval of a licensed technical representative (broker) as a responsible officer of the applicant.

(3)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may grant to the applicant an insurance broker company licence to carry on—

(a)

regulated activities specified in section 1(a) of Part 1 of Schedule 1A in one or more lines of business specified in the licence, as an agent of any policy holder or potential policy holder; and

(b)

regulated activities specified in section 1(b), (c) and (d) of Part 1 of Schedule 1A in one or more lines of business.

(4)

The Authority must not grant the licence unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(b)

each director of the applicant is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(c)

if there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(d)

the applicant is able to demonstrate that, if licensed, the applicant will be able to comply with rules made under section 129 that set out the requirements—

(i)

in relation to the capital and net assets of a licensed insurance broker company;

(ii)

in relation to the professional indemnity insurance taken out by a licensed insurance broker company;

(iii)

in relation to the keeping of separate client accounts by a licensed insurance broker company; and

(iv)

in relation to the keeping of proper books and accounts by a licensed insurance broker company;

(e)

the applicant is neither the holder of a licence granted under section 64U nor applying for such a licence; and

(f)

either—

(i)

both of the following—

(A)

an accompanying application is made for subsection (2)(a)(i) and the criteria for the grant of licence under section 64ZC(3) are satisfied;

(B)

an accompanying application is made for subsection (2)(a)(ii) and the criteria for the approval under section 64ZF(4) are satisfied; or

(ii)

an accompanying application is made for subsection (2)(b) and the criteria for the approval under section 64ZF(4) are satisfied.

(5)

If the Authority grants an application made under subsection (1), the Authority must also grant the accompanying applications made for subsection (2).

(6)

If the Authority rejects an application made under subsection (1), the Authority must also reject the accompanying applications made for subsection (2).

(7)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(8)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64ZB.

Validity of insurance broker company licence

A licence granted under section 64ZA is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority, beginning on the date on which it is granted.

64ZC.

Grant of licence—technical representative (broker)

(1)

An individual may apply to the Authority for a technical representative (broker) licence to carry on regulated activities in one or more lines of business, as an agent of any licensed insurance broker company.

(2)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may grant to the applicant a technical representative (broker) licence to carry on regulated activities in one or more lines of business specified in the licence, as an agent of any licensed insurance broker company.

(3)

The Authority must not grant the licence unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(b)

the applicant is appointed as an agent by—

(i)

at least one licensed insurance broker company; or

(ii)

a person who applies under section 64ZA for an insurance broker company licence; and

(c)

the applicant is neither the holder of a licence granted under section 64U, 64W or 64Y nor applying for such a licence.

(4)

The Authority must give the applicant a notice in writing of the result of the application made under subsection (1).

(5)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64ZD.

Validity of technical representative (broker) licence

A licence granted under section 64ZC is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority, beginning on the date on which it is granted.

64ZE.

Approval of responsible officers of licensed insurance agencies

(1)

A person specified in subsection (2) (principal applicant) may apply to the Authority for the approval of an individual as a responsible officer of the principal applicant.

(2)

The principal applicant is—

(a)

a licensed insurance agency; or

(b)

a person who applies under section 64U for an insurance agency licence.

(3)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may approve the individual as a responsible officer of the principal applicant.

(4)

The Authority must not approve an individual as a responsible officer of the principal applicant unless it is satisfied that—

(a)

the individual is—

(i)

a licensed technical representative (agent); or

(ii)

a person who applies under section 64Y for a technical representative (agent) licence;

(b)

the individual will be fit and proper, whether solely or jointly with other responsible officers of the principal applicant, to discharge his or her responsibilities as a responsible officer of the principal applicant; and

(c)

the individual has sufficient authority from the principal applicant, and will be provided with sufficient resources and support, for discharging those responsibilities.

(5)

The Authority must give the principal applicant and the individual a notice in writing of the result of the application made under subsection (1).

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64ZF.

Approval of responsible officers of licensed insurance broker companies

(1)

A company specified in subsection (2) (principal applicant) may apply to the Authority for the approval of an individual as a responsible officer of the principal applicant.

(2)

The principal applicant is—

(a)

a licensed insurance broker company; or

(b)

a company which applies under section 64ZA for an insurance broker company licence.

(3)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may approve the individual as a responsible officer of the principal applicant.

(4)

The Authority must not approve an individual as a responsible officer of the principal applicant unless it is satisfied that—

(a)

the individual is—

(i)

a licensed technical representative (broker); or

(ii)

a person who applies under section 64ZC for a technical representative (broker) licence;

(b)

the individual will be fit and proper, whether solely or jointly with other responsible officers of the principal applicant, to discharge his or her responsibilities as a responsible officer of the principal applicant; and

(c)

the individual has sufficient authority from the principal applicant, and will be provided with sufficient resources and support, for discharging those responsibilities.

(5)

The Authority must give the principal applicant and the individual a notice in writing of the result of the application made under subsection (1).

(6)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64ZG.

Authority may impose conditions on granting licence or approval

(1)

This section applies if the Authority—

(a)

grants an insurance agency licence under section 64U;

(b)

grants an individual insurance agent licence under section 64W;

(c)

grants a technical representative (agent) licence under section 64Y;

(d)

grants an insurance broker company licence under section 64ZA;

(e)

grants a technical representative (broker) licence under section 64ZC;

(f)

approves an individual as a responsible officer of a licensed insurance agency under section 64ZE; or

(g)

approves an individual as a responsible officer of a licensed insurance broker company under section 64ZF.

(2)

The Authority may impose any conditions that it considers appropriate on the licence or approval when granting the licence or approval.

(3)

The Authority may also impose any conditions that it considers appropriate on the licence or approval after the Authority has granted the licence or approval.

(4)

The Authority may amend or revoke any conditions imposed under subsection (2) or (3).

(5)

The power under subsection (2), (3) or (4) is only exercisable by notice in writing served on—

(a)

in relation to subsection (1)(a), (b), (c), (d) or (e)—the licensee; or

(b)

in relation to subsection (1)(f) or (g)—the licensee and the individual.

(6)

A notice under subsection (5) must, in the case of a conditions being imposed or amended, include a statement of reasons for imposing or amending the conditions.

(7)

An imposition, amendment or revocation of any conditions under subsection (2), (3) or (4) takes effect at the time the notice under subsection (5) is served or at the time specified in the notice, whichever is the later.

Subdivision 3

Revocation and Suspension on Non-disciplinary Grounds

64ZH.

Licensed insurance agency no longer appointed by authorized insurer

If a licensed insurance agency ceases to be appointed as an agent by at least one authorized insurer—

(a)

the licence of the licensed insurance agency is suspended on and from the date on which the cessation takes effect; and

(b)

where the cessation continues for 180 days after that date—the licence of the licensed insurance agency is revoked on the expiry of those days.

64ZI.

Licensed individual insurance agent no longer appointed by authorized insurer

If a licensed individual insurance agent ceases to be appointed as an agent by at least one authorized insurer—

(a)

the licence of the licensed individual insurance agent is suspended on and from the date on which the cessation takes effect; and

(b)

where the cessation continues for 180 days after that date—the licence of the licensed individual insurance agent is revoked on the expiry of those days.

64ZJ.

Revocation and suspension of technical representative (agent) licence

(1)

If a licensed technical representative (agent) ceases to be appointed as an agent by a licensed insurance agency, the licence of the licensed technical representative (agent) is suspended on and from the date on which the cessation takes effect.

(2)

If the licence of the licensed insurance agency by which a licensed technical representative (agent) is appointed is suspended under section 64ZH(a) or 64ZN(1), the licence of the licensed technical representative (agent) is suspended on and from the date on which the licence of the licensed insurance agency is suspended.

(3)

If the licence of a licensed technical representative (agent) is suspended continuously for 180 days under this section, the licence is revoked on the expiry of those days.

64ZK.

Revocation and suspension of technical representative (broker) licence

(1)

If a licensed technical representative (broker) ceases to be appointed as an agent by at least one licensed insurance broker company, the licence of the licensed technical representative (broker) is suspended on and from the date on which the cessation takes effect.

(2)

If—

(a)

a licensed technical representative (broker) is appointed by 1 licensed insurance broker company only; and

(b)

the licence of the licensed insurance broker company by which the licensed technical representative (broker) is appointed is suspended under section 64ZO(1),

the licence of the licensed technical representative (broker) is suspended on and from the date on which the licence of the licensed insurance broker company is suspended.

(3)

If—

(a)

a licensed technical representative (broker) is appointed by more than one licensed insurance broker company; and

(b)

the licences of all the licensed insurance broker companies by which the licensed technical representative (broker) is appointed are suspended under section 64ZO(1),

the licence of the licensed technical representative (broker) is suspended on and from the date on which the licence of the last of those licensed insurance broker companies is suspended.

(4)

If the licence of a licensed technical representative (broker) is suspended continuously for 180 days under this section, the licence is revoked on the expiry of those days.

64ZL.

Revocation of approval of responsible officer of licensed insurance agency

(1)

The approval of a person as a responsible officer of a licensed insurance agency is revoked if the person ceases to be a licensed technical representative (agent).

(2)

The Authority may revoke the approval of a person as a responsible officer of a licensed insurance agency if it is satisfied that—

(a)

the person ceases to be responsible for the conduct in relation to the licensed insurance agency’s carrying on of regulated activities; or

(b)

the person ceases to have sufficient authority from the licensed insurance agency, or to be provided with sufficient resources and support, for discharging his or her responsibilities as a responsible officer of the licensed insurance agency.

(3)

The power under subsection (2) is not exercisable unless, before exercising the power, the Authority has given the individual and the licensed insurance agency—

(a)

a notice in writing of its intention to do so and the reasons for doing so; and

(b)

an opportunity to make written representations or oral representations in relation to those reasons.

(4)

A notice under subsection (3)(a) must also include a statement describing—

(a)

the right of the individual and the licensed insurance agency to make representations; and

(b)

how and when the individual and the licensed insurance agency may make representations.

64ZM.

Revocation of approval of responsible officer of licensed insurance broker company

(1)

The approval of a person as a responsible officer of a licensed insurance broker company is revoked if the person ceases to be a licensed technical representative (broker).

(2)

The Authority may revoke the approval of a person as a responsible officer of a licensed insurance broker company if it is satisfied that—

(Amended E.R. 3 of 2015)

(a)

the person ceases to be responsible for the conduct in relation to the licensed insurance broker company’s carrying on of regulated activities; or

(b)

the person ceases to have sufficient authority from the licensed insurance broker company, or to be provided with sufficient resources and support, for discharging his or her responsibilities as a responsible officer of the licensed insurance broker company.

(3)

The power under subsection (2) is not exercisable unless, before exercising the power, the Authority has given the individual and the licensed insurance broker company—

(a)

a notice in writing of its intention to do so and the reasons for doing so; and

(b)

an opportunity to make written representations or oral representations in relation to those reasons.

(4)

A notice under subsection (3)(a) must also include a statement describing—

(a)

the right of the individual and the licensed insurance broker company to make representations; and

(b)

how and when the individual and the licensed insurance broker company may make representations.

64ZN.

Licensed insurance agencies without responsible officers

(1)

If the Authority is satisfied that a licensed insurance agency ceases to have a responsible officer, the Authority may suspend the licence of the licensed insurance agency for a period, or until the occurrence of an event, specified by the Authority.

(2)

The Authority may revoke the licence of the licensed insurance agency if—

(a)

the licensed insurance agency has not made an application under section 64ZE for the approval of an individual as a responsible officer of the licensed insurance agency within 90 days after the date on which the suspension takes effect; or

(b)

the licensed insurance agency has made such an application within 90 days after the date on which the suspension takes effect and the Authority rejects the application.

(3)

The power under subsection (1) is not exercisable unless, before exercising the power, the Authority has given the licensed insurance agency—

(a)

a notice in writing of its intention to do so and the reasons for doing so; and

(b)

an opportunity to make written representations or oral representations in relation to those reasons.

(4)

A notice under subsection (3)(a) must also include a statement describing—

(a)

the right of the licensed insurance agency to make representations; and

(b)

how and when the licensed insurance agency may make representations.

64ZO.

Licensed insurance broker companies without responsible officers

(1)

If the Authority is satisfied that a licensed insurance broker company ceases to have a responsible officer, the Authority may suspend the licence of the licensed insurance broker company for a period, or until the occurrence of an event, specified by the Authority.

(2)

The Authority may revoke the licence of the licensed insurance broker company if—

(a)

the licensed insurance broker company has not made an application under section 64ZF for the approval of an individual as a responsible officer of the licensed insurance broker company within 90 days after the date on which the suspension takes effect; or

(b)

the licensed insurance broker company has made such an application within 90 days after the date on which the suspension takes effect and the Authority rejects the application.

(3)

The power under subsection (1) is not exercisable unless, before exercising the power, the Authority has given the licensed insurance broker company—

(a)

a notice in writing of its intention to do so and the reasons for doing so; and

(b)

an opportunity to make written representations or oral representations in relation to those reasons.

(4)

A notice under subsection (3)(a) must also include a statement describing—

(a)

the right of the licensed insurance broker company to make representations; and

(b)

how and when the licensed insurance broker company may make representations.

64ZP.

Licence revoked on death, dissolution, etc. of licensee

A licence is revoked—

(a)

if the licensed insurance intermediary is an individual—on the death of the individual;

(b)

if the licensed insurance intermediary is a partnership—on the dissolution of the partnership; or

(c)

if the licensed insurance intermediary is a company—on the winding up of the company or on the date on which the company is struck off the Companies Register under the Companies Ordinance (Cap. 622).

64ZQ.

Licence revoked or suspended on licensed insurance intermediary’s request

(1)

The Authority may revoke the licence of a licensed insurance intermediary if the intermediary requests the Authority to do so.

(2)

The Authority may suspend the licence of a licensed insurance intermediary if the intermediary requests the Authority to do so.

64ZR.

Effect of suspension under this Subdivision

If the licence of a person is suspended under this Subdivision, the person must, during the suspension period—

(a)

continue to be regarded for the purposes of this Ordinance, but not sections 64G, 64ZE, 64ZF, 64ZN and 64ZO, to be licensed; and

(b)

without limiting paragraph (a), continue to be required to comply with the provisions of this Ordinance relating to a licensed insurance intermediary as would apply to the person were the licence not so suspended.

64ZS.

Revocation or suspension of licence does not avoid or affect agreement, etc.

Subject to section 64N, a revocation or suspension of the licence of a person under this Subdivision does not—

(a)

avoid or affect an agreement, transaction or arrangement entered into or arranged by the person, regardless of whether the agreement, transaction or arrangement was entered into or arranged before or after the revocation or suspension; or

(b)

affect a right, obligation or liability arising under the agreement, transaction or arrangement.

64ZT.

Requirement to transfer records on revocation or suspension of licence

(1)

If the licence of a person is revoked or suspended under this Subdivision, the Authority may, by notice in writing, require the person to transfer to a client a copy of the records relating to the client’s assets or affairs, held at any time for the client as specified in the notice.

(2)

A person who, without reasonable excuse, fails to comply with a requirement imposed on the person under subsection (1) commits an offence and is liable to a fine of $200,000 and to imprisonment for 2 years.

64ZU.

Permission to carry on business operations on revocation or suspension of licence

(1)

If the licence of a person is revoked under section 64ZH, 64ZI, 64ZJ, 64ZK, 64ZN or 64ZO, the Authority may, by notice in writing, permit the person, subject to the conditions specified in the notice, to carry on business operations for closing down the business connected with the revocation.

(2)

If the licence of a person is suspended under section 64ZH, 64ZI, 64ZJ, 64ZK, 64ZN or 64ZO, the Authority may, by notice in writing, permit the person, subject to the conditions specified in the notice, to carry on only essential business operations for the protection of the interests of the policy holders concerned during the period of suspension.

(3)

If the Authority has granted a permission to a person under subsection (1) or (2), the person must not, because of its carrying on business operations in compliance with the permission, be regarded as having contravened section 64G or 120.

(4)

A permission under subsection (1) or (2), and the imposition of conditions under any of those subsections, take effect at the time of the service of the notice or at the time specified in the notice, whichever is the later.

Subdivision 4

Renewal

64ZV.

Renewal of licences

(1)

A person licensed under section 64U, 64W, 64Y, 64ZA or 64ZC may apply to the Authority for a renewal of the licence.

(2)

For a partnership, the application for a renewal of the licence may only be made by a partner authorized by the partnership on behalf of the partnership and, if the licence is renewed, it is to be expressed to be renewed to that partner on behalf of the partnership.

(3)

An application under subsection (1) may only be made no later than 45 days before the licence is due to expire.

(4)

On an application made in the manner specified by the Authority and on payment of a prescribed fee, the Authority may renew the licence.

(5)

The Authority must not renew an insurance agency licence granted under section 64U unless—

(a)

it is satisfied that—

(i)

if the applicant was a sole proprietor at the time when the licence was first applied for, the applicant is a sole proprietor;

(ii)

if the applicant was a partnership at the time when the licence was first applied for, the applicant is a partnership; or

(iii)

if the applicant was a company at the time when the licence was first applied for, the applicant is a company;

(b)

it is satisfied that—

(i)

if the applicant is a sole proprietor—

(A)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(B)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(ii)

if the applicant is a partnership—

(A)

each partner of the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(B)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business; or

(iii)

if the applicant is a company—

(A)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(B)

each director of the applicant is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business; and

(C)

where there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(c)

it is satisfied that the applicant is appointed as an agent by at least one authorized insurer; and

(d)

it is satisfied that either—

(i)

the applicant has a responsible officer; or

(ii)

the applicant has made an application for the approval of an individual as a responsible officer of the applicant under section 64ZE, and the criteria for the approval under section 64ZE(4) are satisfied.

(6)

The Authority must not renew an individual insurance agent licence granted under section 64W unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(b)

the applicant is appointed as an agent by at least one authorized insurer.

(7)

The Authority must not renew a technical representative (agent) licence granted under section 64Y unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(b)

the applicant is appointed as an agent by a licensed insurance agency.

(8)

The Authority must not renew an insurance broker company licence granted under section 64ZA unless it is satisfied that—

(a)

the applicant is a company;

(b)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned;

(c)

each director of the applicant is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(d)

if there is a controller in relation to the applicant, the controller is a fit and proper person to be associated with the carrying on of regulated activities in those lines of business;

(e)

the applicant is able to demonstrate that, if the licence is renewed, the applicant will be able to continue to comply with rules made under section 129 that set out the requirements—

(i)

in relation to the capital and net assets of a licensed insurance broker company;

(ii)

in relation to the professional indemnity insurance taken out by a licensed insurance broker company;

(iii)

in relation to the keeping of separate client accounts by a licensed insurance broker company; and

(iv)

in relation to the keeping of proper books and accounts by a licensed insurance broker company; and

(f)

either—

(i)

the applicant has a responsible officer; or

(ii)

the applicant has made an application for the approval of an individual as a responsible officer of the applicant under section 64ZF, and the criteria for the approval under section 64ZF(4) are satisfied.

(9)

The Authority must not renew a technical representative (broker) licence granted under section 64ZC unless it is satisfied that—

(a)

the applicant is a fit and proper person to carry on regulated activities in the lines of business concerned; and

(b)

the applicant is appointed as an agent by at least one licensed insurance broker company.

(10)

The Authority must give the applicant a notice in writing of the result of the application for a renewal made under subsection (1).

(11)

If the application is rejected, the notice must include a statement of the reasons for the rejection.

64ZW.

Amendment, revocation and imposition of conditions on renewal of licences

(1)

On renewing a licence under section 64ZV, the Authority may amend or revoke a condition of the licence previously imposed on the licensee, or impose a new condition on the licensee, that the Authority thinks fit.

(2)

If the Authority amends or revokes a condition or imposes a new condition, the Authority must, at the time the licence is renewed, inform the licensee by notice in writing.

(3)

The notice must include a statement of reasons for imposing or amending the conditions.

(4)

An amendment, revocation or imposition of any condition under subsection (1) takes effect at the time the notice under subsection (2) is served on the licensee or at the time specified in the notice, whichever is the later.

64ZX.

Validity of licences for which applications have been made under section 64ZV

(1)

A licence for which an application for a renewal is made under section 64ZV and which expires before the determination of the application by the Authority remains in force—

(a)

until the licence is renewed; or

(b)

if the renewal is refused—until the Authority’s decision to refuse to renew the licence takes effect.

(2)

Subsection (1) does not apply if the application for the renewal is withdrawn or the licence is revoked.

64ZY.

Validity of licences renewed under section 64ZV

(1)

A renewal granted under section 64ZV takes effect on the day following the expiry of the licence.

(2)

A licence renewed under section 64ZV is valid for 3 years or, if the Authority considers it appropriate in a particular case, another period determined by the Authority.

Subdivision 5

Supplementary Provisions

64ZZ.

Applicants to provide information

(1)

A person who applies—

(a)

for the approval of the variation of a line of business specified in a licence under section 64S;

(b)

for a licence under section 64U, 64W, 64Y, 64ZA or 64ZC;

(c)

for the approval of an individual as a responsible officer under section 64ZE or 64ZF; or

(d)

for a renewal of a licence under section 64ZV,

must provide the Authority with information that it reasonably requires to enable it to consider the application.

(2)

In considering the application, the Authority may have regard to any information in its possession (whether provided by the applicant or not).

64ZZA.

Determination of fit and proper

(1)

In determining whether a person is a fit and proper person for the purposes of this Division, the Authority must have regard to the following matters—

(a)

the education or other qualifications or experience of the person;

(b)

the person’s ability to carry on a regulated activity competently, honestly and fairly;

(c)

the reputation, character, reliability and integrity of the person;

(d)

the person’s financial status or solvency;

(e)

whether any disciplinary action has been taken against the person by—

(i)

the Monetary Authority;

(ii)

the Securities and Futures Commission;

(iii)

the Mandatory Provident Fund Schemes Authority; or

(iv)

any other authority or regulatory organization, whether in Hong Kong or elsewhere, which, in the Authority’s opinion, performs a function similar to those of the Authority;

(f)

if the person is a company in a group of companies, any information in the possession of the Authority, whether provided by the person or not, relating to—

(i)

any other company in the group of companies; or

(ii)

any controller or director of the person or of any company referred to in subparagraph (i);

(g)

the state of affairs of any other business which the person carries on or proposes to carry on.

(2)

In determining whether a person is a fit and proper person for the purposes of section 64U or 64ZA, or section 64ZV for the renewal of a licence granted under section 64U or 64ZA, the Authority must also have regard to any information in its possession whether provided by the person or not relating to—

(a)

any other person who is or is to be employed by, or associated with the person for the purposes of carrying on regulated activities;

(b)

any other person who is or will be acting for or on behalf of the person in relation to carrying on regulated activities; and

(c)

the question as to whether the person has established effective internal control procedures and risk management systems to ensure its compliance with this Ordinance.

(3)

The obligations imposed on the Authority under subsection (1) or (2) (or both) are in addition to those of the Authority to have regard to any other matter that the Authority considers relevant in making the determination.

64ZZB.

Procedural requirements for rejecting application, or imposing or amending conditions

(1)

The Authority must not—

(a)

reject an application made under section 64U(1) or 64ZV(1) for an insurance agency licence or a renewal of such a licence;

(b)

impose a condition under section 64ZG(2) or (3) or 64ZW(1) on granting or renewing such a licence; or

(c)

amend such a condition under section 64ZG(4) or 64ZW(1),

without giving the applicant an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(2)

The Authority must not—

(a)

reject an application made under section 64W(1) or 64ZV(1) for an individual insurance agent licence or a renewal of such a licence;

(b)

impose a condition under section 64ZG(2) or (3) or 64ZW(1) on granting or renewing such a licence; or

(c)

amend such a condition under section 64ZG(4) or 64ZW(1),

without giving the applicant an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(3)

The Authority must not—

(a)

reject an application made under section 64Y(1) or 64ZV(1) for a technical representative (agent) licence or a renewal of such a licence;

(b)

impose a condition under section 64ZG(2) or (3) or 64ZW(1) on granting or renewing such a licence; or

(c)

amend such a condition under section 64ZG(4) or 64ZW(1),

without giving the applicant an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(4)

The Authority must not—

(a)

reject an application made under section 64ZA(1) or 64ZV(1) for an insurance broker company licence or a renewal of such a licence;

(b)

impose a condition under section 64ZG(2) or (3) or 64ZW(1) on granting or renewing such a licence; or

(c)

amend such a condition under section 64ZG(4) or 64ZW(1),

without giving the applicant an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(5)

The Authority must not—

(a)

reject an application made under section 64ZC(1) or 64ZV(1) for a technical representative (broker) licence or a renewal of such a licence;

(b)

impose a condition under section 64ZG(2) or (3) or 64ZW(1) on granting or renewing such a licence; or

(c)

amend such a condition under section 64ZG(4) or 64ZW(1),

without giving the applicant an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(6)

The Authority must not—

(a)

reject an application made under section 64ZE(1) for the approval of an individual as a responsible officer of a licensed insurance agency;

(b)

impose a condition under section 64ZG(2) or (3) on such an approval; or

(c)

amend such a condition under section 64ZG(4),

without giving the individual and the licensed insurance agency or an applicant for an insurance agency licence an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(7)

The Authority must not—

(a)

reject an application made under section 64ZF(1) for the approval of an individual as a responsible officer of a licensed insurance broker company;

(b)

impose a condition under section 64ZG(2) or (3) on such an approval; or

(c)

amend such a condition under section 64ZG(4),

without giving the individual and the licensed insurance broker company or an applicant for an insurance broker company licence an opportunity to make representations as to why the application should not be rejected or why the condition should not be imposed or amended.

(8)

In this section, a reference to an opportunity to make representations is a reference to an opportunity to make written representations or oral representations.

64ZZC.

Form of licence

(1)

A licence granted under section 64U, 64W, 64Y, 64ZA, or 64ZC or renewed under section 64ZV must be in a form specified by the Authority and must specify—

(a)

the name or names of the licensee and the reference number assigned by the Authority;

(b)

the conditions imposed or amended;

(c)

the period for which the licence is valid;

(d)

one or more of the following lines of business which the licensee may carry on—

(i)

general business;

(ii)

long term business (excluding linked long term business as referred to in Part 2 of Schedule 1);

(iii)

long term business (including linked long term business as referred to in Part 2 of Schedule 1);

(iv)

restricted scope travel business; and

(e)

any other particulars that are prescribed by rules made under section 129.

(2)

A licence granted under section 64U or 64ZA, or the licence renewed under section 64ZV, must also specify the business address of the licensee.

(3)

A licence granted under section 64U or 64W, or the licence renewed under section 64ZV, must also specify the name of the authorized insurer by which the licensee is appointed.

(4)

A licence granted under section 64Y, or the licence renewed under section 64ZV, must also specify the name of—

(a)

the licensed insurance agency by which the licensee is appointed; and

(b)

the authorized insurer by which the licensed insurance agency is appointed.

(5)

A licence granted under section 64ZC, or the licence renewed under section 64ZV, must also specify the name of the licensed insurance broker company by which the licensee is appointed.

(6)

In this section—

restricted scope travel business

(

有限制旅保業務

), in relation to a travel agent that is a licensed insurance agency—

(a)

means effecting a travel insurance policy that is tied to a tour, travel package, trip or other travel services arranged by the travel agent for its customers; and

(b)

does not include effecting an annual travel insurance policy.

64ZZD.

Duty to notify Authority of change in partners, directors or controllers

(1)

Within 1 month after the date on which a person becomes, or ceases to be, a partner, director or controller of a licensed insurance agency, the agency must notify the Authority in writing of that fact.

(2)

Within 1 month after the date on which a person becomes, or ceases to be, a director or controller of a licensed insurance broker company, the company must notify the Authority in writing of that fact.

(3)

A notification under subsection (1) or (2) must be accompanied by a prescribed fee.

(4)

A licensed insurance agency who, without reasonable excuse, contravenes subsection (1) commits an offence and is liable to a fine at level 5.

(5)

A licensed insurance broker company which, without reasonable excuse, contravenes subsection (2) commits an offence and is liable to a fine at level 5.

64ZZE.

Offence to provide false information in connection with application for licence or approval

(1)

A person commits an offence if the person, in connection with an application for the grant or renewal of a licence, or with an application for the approval, under this Division—

(a)

makes a statement that is false or misleading in a material particular; and

(b)

knows that, or is reckless as to whether, the statement is false or misleading in the material particular.

(2)

A person commits an offence if the person, in connection with an application for the grant or renewal of a licence, or with an application for the approval, under this Division—

(a)

omits a material particular from a statement with the result that the statement is rendered false or misleading; and

(b)

knows that, or is reckless as to whether, the material particular is omitted from the statement.

(3)

A person who commits an offence under subsection (1) or (2) is liable to a fine at level 5 and to imprisonment for 6 months.

Division 4

Inspection and Investigation

(Division 4 added 12 of 2015 s. 74)

Subdivision 1

Inspection and Investigation without Warrant

64ZZF.

Power to conduct inspection

(1)

An inspector may exercise the powers under subsections (2) and (3) for ascertaining whether a licensed insurance intermediary is complying with, has complied with, or is likely to be able to comply with—

(a)

a provision of this Ordinance;

(b)

a notice or requirement given or imposed under a provision of this Ordinance;

(c)

a term or condition of a licence granted under this Ordinance; or

(d)

any other condition imposed under a provision of this Ordinance.

(2)

At any reasonable time, an inspector—

(a)

may enter any business premises of the licensed insurance intermediary;

(b)

may inspect, and may make copies or otherwise record details of, a business record of the intermediary; and

(c)

may make inquiries of the intermediary or a person specified in subsection (5)—

(i)

concerning a business record of the intermediary; or

(ii)

concerning a transaction or activity that was undertaken in the course of, or may affect, the regulated activity carried on by the intermediary.

(3)

In exercising a power under subsection (2)(b) or (c), the inspector may require the licensed insurance intermediary, or a person specified in subsection (5)—

(a)

to give the inspector access to a business record of the intermediary;

(b)

to produce to the inspector, within the time and at the place specified in the requirement, a business record of the intermediary; and

(c)

to answer a question concerning—

(i)

a business record of the intermediary; or

(ii)

a transaction or activity that was undertaken in the course of, or may affect, the regulated activity carried on by the intermediary.

(4)

The power under subsection (2)(c) or (3) is not exercisable in relation to a person specified in subsection (5) unless the inspector has reasonable cause to believe that the information or record being sought cannot be obtained by exercising the power in relation to the licensed insurance intermediary.

(5)

The person specified for subsections (2)(c) and (3) is a person whom the inspector has reasonable cause to believe has information relating to, or is in possession of, a business record of the licensed insurance intermediary.

(6)

The Authority may in writing appoint a person, or a person belonging to a class of persons, as an inspector for the purposes of this section.

(7)

The Authority must provide an inspector with a copy of its appointment.

(8)

When imposing a requirement on a person under subsection (3), an inspector must, if so requested, produce a copy of the appointment to that person for inspection as soon as practicable.

(9)

This section is subject to section 64ZZJ.

(10)

In this section—

business premises

(

業務處所

), in relation to a licensed insurance intermediary, means any non-domestic premises at which—

(a)

the intermediary carries on business; or

(b)

the person by whom the intermediary is appointed as an agent carries on business.

64ZZG.

Inspector may require answer, etc. to be verified by statutory declaration

(1)

If a person gives an answer in compliance with a requirement imposed under section 64ZZF(2)(c) or (3), the inspector may, in writing, require the person to verify, within the time specified in the requirement, the answer by a statutory declaration.

(2)

If a person does not give an answer in compliance with a requirement imposed under section 64ZZF(2)(c) or (3) for the reason that the information concerned was not within the person’s knowledge or possession, the inspector may, in writing, require the person to verify, within the time specified in the requirement, by a statutory declaration, that the person did not comply with the requirement for that reason.

(3)

A statutory declaration under subsection (1) or (2) may be made before the inspector and, for that purpose, the inspector is to have full power to administer the statutory declaration.

64ZZH.

Power to conduct investigation

(1)

If—

(a)

the Authority has reasonable cause to believe that a provision of this Ordinance may have been contravened;

(b)

the Authority has reasonable cause to believe that a person may have been involved in defalcation, fraud, misfeasance or other misconduct in relation to the carrying on of a regulated activity;

(c)

the Authority has reasonable cause to believe that a person has carried on, or is carrying on, a regulated activity in a manner that is not in the interests of policy holders or potential policy holders or the public interest; or

(d)

the Authority, for considering whether to exercise any power under section 81, has reason to enquire if—

(i)

a person is, or was, guilty of misconduct as defined by section 80; or

(ii)

a person is, or was, not a fit and proper person as described in section 81(1)(c),

the Authority may in writing direct one or more of its employees, or, with the consent of the Financial Secretary, appoint one or more other persons, to investigate the matter.

(2)

The Authority must consult the Monetary Authority before the Authority directs any of its employees, or appoints a person to investigate a matter in respect of—

(a)

an authorized institution;

(b)

a person who is, or was, employed by an authorized institution; or

(c)

a person who is, or was, appointed as an agent by an authorized institution,

in relation to any regulated activity carried on by the institution.

(3)

The costs and expenses incurred by an investigator, other than an employee of the Authority, may be paid out of moneys provided by the Legislative Council.

(4)

The Authority must provide an investigator with a copy of its direction or appointment.

(5)

Before first imposing a requirement on a person under subsection (6), an investigator must produce a copy of the direction or appointment to that person for inspection.

(6)

An investigator may require a person specified in subsection (7)—

(a)

to produce, within the time and at the place the investigator requires in writing, a record or document specified by the investigator that—

(i)

is or may be relevant to the investigation; and

(ii)

is in the person’s possession;

(b)

to give an explanation or further particulars in respect of a record or document produced;

(c)

to attend before the investigator at the time and place the investigator requires in writing, and answer a question relating to any matter under investigation that may be raised by the investigator;

(d)

to answer in writing, within the time the investigator requires in writing, a written question relating to any matter under investigation that may be raised by the investigator; and

(e)

to give the investigator all other assistance in connection with the investigation that the person is able to give.

(7)

The person specified for subsection (6) is—

(a)

a person who is relevant to the matter that an investigator is directed or appointed to investigate; or

(b)

a person whom an investigator has reasonable cause to believe—

(i)

to be in possession of a record or document that contains, or is likely to contain, information relevant to the investigation; or

(ii)

to be otherwise in possession of such information.

(8)

This section is subject to section 64ZZJ.

64ZZI.

Investigator may require explanation, etc. to be verified by statutory declaration

(1)

If a person gives any explanation, particulars or answer in compliance with a requirement imposed under section 64ZZH(6), the investigator may, in writing, require the person to verify, within the time specified in the requirement, the explanation, particulars or answer by a statutory declaration.

(2)

If a person does not give any explanation, particulars or answer in compliance with a requirement imposed under section 64ZZH(6) for the reason that the information concerned was not within the person’s knowledge or possession, the investigator may, in writing, require the person to verify, within the time specified in the requirement, by a statutory declaration, that the person did not comply with the requirement for that reason.

(3)

A statutory declaration under subsection (1) or (2) may be made before the investigator and, for that purpose, the investigator is to have full power to administer the statutory declaration.

64ZZJ.

Inspection and investigation powers in relation to authorized institutions

(1)

An inspector has no power under section 64ZZF or 64ZZG to require an authorized institution to disclose any information, or to produce a record or document, relating to the affairs of a customer of the institution—

(a)

unless the inspector is a specified authority; or

(b)

unless the inspector is satisfied that the disclosure or production is necessary for ascertaining a matter specified in section 64ZZF(1) and so certifies in writing to the institution.

(2)

An investigator has no power under section 64ZZH or 64ZZI to require an authorized institution to disclose any information, or to produce a record or document, relating to the affairs of a customer of the institution—

(a)

unless the investigator is a specified authority; or

(b)

unless—

(i)

the customer is a person whom the investigator has reasonable cause to believe may be able to give information relevant to the matter under investigation; and

(ii)

the investigator is satisfied that the disclosure or production is necessary for the investigation and so certifies in writing to the institution.

(3)

In this section—

specified authority

(

指明當局

)—

(a)

in relation to subsection (1), means—

(i)

the Monetary Authority; or

(ii)

a person appointed by the Monetary Authority under section 64ZZF(6); or

(b)

in relation to subsection (2), means—

(i)

the Monetary Authority; or

(ii)

a person directed or appointed by the Monetary Authority under section 64ZZH(1).

64ZZK.

Application to Court of First Instance for inquiry into failure

(1)

If a person fails to comply with a requirement imposed by an inspector under section 64ZZF or 64ZZG or an investigator under section 64ZZH or 64ZZI, the inspector or investigator may apply by originating summons to the Court of First Instance for an inquiry into the failure.

(2)

On an application under subsection (1), the Court of First Instance—

(a)

on being satisfied that there is no reasonable excuse for the person not to comply with the requirement, may order the person to comply with the requirement within the time specified by the Court; and

(b)

on being satisfied that the failure was without reasonable excuse, may punish the person, and any other person knowingly involved in the failure, in the same manner as if the person and that other person had been guilty of contempt of court.

(3)

An originating summons under subsection (1) is to be in Form No. 10 in Appendix A to the Rules of the High Court (Cap. 4 sub. leg. A).

(4)

Despite anything in this Ordinance, no proceedings may be instituted against a person for subsection (2)(b) in respect of a conduct if—

(a)

criminal proceedings have previously been instituted against the person under section 64ZZL(1), (2), (3), (4) or (5) in respect of the same conduct; and

(b)

those proceedings remain pending, or because of the previous institution of those proceedings, no criminal proceedings may again be lawfully instituted against that person under section 64ZZL(1), (2), (3), (4) or (5) in respect of the same conduct.

64ZZL.

Offences in relation to inspections and investigations

(1)

A person commits an offence if the person, without reasonable excuse, fails to comply with a specified requirement imposed on the person.

(2)

A person commits an offence if the person, with intent to defraud, fails to comply with a specified requirement imposed on the person.

(3)

A person commits an offence if—

(a)

in purported compliance with a specified requirement imposed on the person, the person produces a record or document, gives an answer, or gives any explanation or particulars, that are false or misleading in a material particular; and

(b)

the person knows that, or is reckless as to whether, the record or document, the answer, or the explanation or particulars, are false or misleading in the material particular.

(4)

A person commits an offence if, in purported compliance with a specified requirement imposed on the person, the person, with intent to defraud, produces a record or document, gives an answer, or gives any explanation or particulars, that are false or misleading in a material particular.

(5)

A person commits an offence if the person, with intent to defraud—

(a)

causes or allows another person to fail to comply with a specified requirement imposed on that other person; or

(b)

causes or allows that other person, in purported compliance with a specified requirement imposed on that other person, to produce a record or document, to give an answer, or to give any explanation or particulars, that are false or misleading in a material particular.

(6)

A person is not excused from complying with a requirement imposed on the person under section 64ZZH(6) or 64ZZI(1) only on the ground that to do so might tend to incriminate the person.

(7)

Despite anything in this Ordinance, no criminal proceedings may be instituted against a person under subsection (1), (2), (3), (4) or (5) in respect of a conduct if—

(a)

proceedings have previously been instituted against the person under section 64ZZK(2)(b) in respect of the same conduct; and

(b)

those proceedings remain pending, or because of the previous institution of those proceedings, no proceedings may again be lawfully instituted against that person under section 64ZZK(2)(b) in respect of the same conduct.

(8)

A person who commits an offence under subsection (1) is liable—

(a)

on conviction on indictment to a fine of $200,000 and to imprisonment for 1 year; or

(b)

on summary conviction to a fine at level 5 and to imprisonment for 6 months.

(9)

A person who commits an offence under subsection (3) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(10)

A person who commits an offence under subsection (2), (4) or (5) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 7 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(11)

In this section—

specified requirement

(

指明要求

) means a requirement imposed under section 64ZZF(3), 64ZZG(1) or (2), 64ZZH(6) or 64ZZI(1) or (2).

64ZZM.

Use of incriminating evidence in proceedings

(1)

If an investigator requires a person to give an answer to a question or to give an explanation or further particulars under this Division, the investigator must ensure that the person has first been informed of the effect of subsection (2).

(2)

Despite anything in this Ordinance and subject to subsection (3)—

(a)

if an investigator requires a person to give an answer to a question or to give an explanation or further particulars under this Division; and

(b)

the answer, or the explanation or further particulars, might tend to incriminate the person and the person so claims before giving the answer or giving the explanation or further particulars,

the requirement and the question and answer, or the explanation or further particulars, are not admissible in evidence against the person in criminal proceedings in a court of law.

(3)

Subsection (2) does not apply to criminal proceedings in which the person is, in relation to the answer, or the explanation or further particulars, charged with—

(a)

an offence under section 64ZZL(1), (2), (3), (4) or (5), or under Part V of the Crimes Ordinance (Cap. 200); or

(b)

perjury.

64ZZN.

Offences in relation to destruction of records and documents

(1)

A person commits an offence if—

(a)

the person destroys, falsifies, conceals or otherwise disposes of, or causes or permits the destruction, falsification, concealment or disposal of, a record or document that the person is required by an inspector or investigator to produce under section 64ZZF or 64ZZH; and

(b)

the person does so with intent to conceal, from the inspector or investigator, facts or matters capable of being disclosed by the record or document.

(2)

A person who commits an offence under subsection (1) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

64ZZO.

Order to pay costs of investigation

(1)

If a person is convicted by a court on a prosecution instituted as a result of the findings of an investigation under section 64ZZH—

(a)

the court may order the person to pay to the Authority the whole or a part of the costs and expenses of the investigation; and

(b)

the Authority may recover the whole or that part of the costs and expenses as a civil debt due to it.

(2)

Subsection (3) applies if—

(a)

the Authority receives an amount under an order made under subsection (1) in respect of any of the costs and expenses of an investigation; and

(b)

all or any of the costs and expenses have already been paid out of moneys provided by the Legislative Council.

(3)

The Authority must pay to the Financial Secretary the amount received under the order to the extent to which it has already been paid out of moneys provided by the Legislative Council.

Subdivision 2

Magistrate’s Warrants

64ZZP.

Magistrate’s warrants to enter premises, etc.

(1)

This section applies if a magistrate is satisfied on information on oath laid by a person specified in subsection (3) that there are reasonable grounds to suspect that there is, or is likely to be, on premises specified in the information a record or document that may be required to be produced under section 64ZZF or 64ZZH.

(2)

If this section applies, the magistrate may issue a warrant authorizing a person mentioned in the warrant, and other persons who may be necessary to assist in the execution of the warrant—

(a)

to enter the premises, if necessary by force, at any time within the period of 7 days beginning on the date of the warrant; and

(b)

to search for, seize and remove a record or document that the person mentioned in the warrant has reasonable cause to believe may be required to be produced under section 64ZZF or 64ZZH.

(3)

The person specified for subsection (1) is—

(a)

in relation to a record or document that may be required to be produced under section 64ZZF—an inspector; or

(b)

in relation to a record or document that may be required to be produced under section 64ZZH—an investigator.

(4)

If an authorized person has reasonable cause to believe that a person found on the premises is employed, or engaged to provide a service, in connection with a business that is or has been conducted on the premises, the authorized person may require that person to produce for examination a record or document that—

(a)

is in the possession of that person; and

(b)

the authorized person has reasonable cause to believe may be required to be produced under section 64ZZF or 64ZZH.

(5)

An authorized person may, in relation to a record or document required to be produced under subsection (4)—

(a)

prohibit a person found on the premises from—

(i)

removing the record or document from the premises;

(ii)

erasing anything from, adding anything to, or otherwise altering anything in, the record or document; or

(iii)

otherwise interfering in any way with, or causing or permitting any other person to interfere with, the record or document; or

(b)

take any other step that appears to the authorized person to be necessary for—

(i)

preserving the record or document; or

(ii)

preventing interference with the record or document.

(6)

An authorized person who enters any premises under this section must, if required, produce the warrant for inspection.

(7)

Section 102 of the Criminal Procedure Ordinance (Cap. 221) applies to any property that has, because of this section, come into the possession of the Authority, as it applies to property that has come into the possession of the police.

(8)

A person commits an offence if the person—

(a)

without reasonable excuse, fails to comply with a requirement or prohibition imposed on the person under subsection (4) or (5); or

(b)

obstructs an authorized person exercising a power conferred by subsection (4) or (5).

(9)

A person who commits an offence under subsection (8) is liable—

(a)

on conviction on indictment to a fine of $1,000,000 and to imprisonment for 2 years; or

(b)

on summary conviction to a fine at level 6 and to imprisonment for 6 months.

(10)

In this section—

authorized person

(

獲授權人

) means a person mentioned in, and authorized by, a warrant issued under subsection (2) to carry out the acts set out in paragraphs (a) and (b) of that subsection.

64ZZQ.

Removal of records and documents under section 64ZZP

(1)

A record or document removed under section 64ZZP(2) may be retained—

(a)

for a period not exceeding 6 months beginning on the day of its removal; or

(b)

for a longer period that may be required because of any criminal proceedings, or any proceedings under this Ordinance.

(2)

If an authorized person removes a record or document under section 64ZZP(2), the authorized person must, as soon as practicable after the removal, give a receipt for the record or document.

Subdivision 3

Miscellaneous

64ZZR.

Lien claimed on records or documents

If the person in possession of a record or document required to be produced under section 64ZZF or 64ZZH claims a lien on the record or document—

(a)

the requirement to produce the record or document is not affected by the lien;

(b)

no fee is payable for the production; and

(c)

the production is without prejudice to the lien.

64ZZS.

Production of information in information systems, etc.

If any information or matter contained in a record or document required to be produced under section 64ZZF or 64ZZH is recorded otherwise than in a legible form, a power to require the production of the record or document includes the power to require the production of a reproduction of the recording of the information or matter or of the relevant part of it—

(a)

if the recording enables the information or matter to be reproduced in a legible form—in a legible form; and

(b)

if the information or matter is recorded in an information system—in a form which enables the information or matter to be reproduced in a legible form.

64ZZT.

Inspection of records or documents seized, etc.

(1)

If a specified person has taken possession of a record or document under this Division, the specified person must permit a person who would be entitled to inspect the record or document had the specified person not taken possession of it, to inspect it and to make copies or otherwise record details of it at all reasonable times.

(2)

The permission is subject to any reasonable conditions the specified person imposes.

(3)

In this section—

specified person

(

指明人士

) means—

(a)

an authorized person within the meaning of section 64ZZP; or

(b)

an investigator.

Insurance Ordinance

Sections

Schedules