20 September 2021
An exposure draft was issued by the Central Bank of Malaysia on the policy document of Bancassurance/Bancatakaful for public’s feedback by 30 September 2021.
The exposure draft sets out the proposed requirements on a bancassurance/bancatakaful arrangements whilst facilitating the sustainable development of bancassurance/bancatakaful as an effective channel for needs-based sales of insurance and takaful products in Malaysia.
The exposure draft sets out, among others:
• it will apply to persons licensed under the Financial Services Act 2013 and Islamic Financial Services Act 2013 as well as prescribed institutions under the Development Financial Institutions Act 2002 (collectively, Financial Service Providers).
• the requirements therein will apply to existing and new bancassurance/bancatakaful arrangements, including the renewals, unless specified otherwise.
• the Financial Service Providers must ensure governance arrangements that the management of its bancassurance/bancatakaful business are consistent with the requirements set out in the policy documents such as Corporate Governance and Fair Treatment of Financial Consumers.
• the Financial Service Providers shall ensure each bancassurance/bancatakaful agreement clearly sets out the accountabilities of insurer/takaful operators and its bancassurance/bancatakaful partners.
• it will supersede the (i) Guidelines on Bancassurance; (ii) Guidelines on Bancatakaful, each issued on 17 June 2010; and (iii) Circular on Marketing of Bancassurance/ Bancatakaful Products issued on 24 December 2008.
For further information, please contact:
Christina S.C. Kow, Partner, Shearn Delamore & Co
christina@shearndelamore.com
