Insurance Authority (IA) 保險業監管局
The Insurance Authority (IA) was established on 7 December 2015 under the Insurance Companies (Amendment) Ordinance 2015. Its establishment aimed to update Hong Kong’s insurance regulatory framework, support stable industry development and strengthen policyholder protection. It also addressed the International Association of Insurance Supervisors’ requirement for financial and operational independence from government and industry. [IA history](https://www.ia.org.hk/en/aboutus/role/history.html)
Distinguish three stages: establishment on 7 December 2015; taking over from the government’s Office of the Commissioner of Insurance to supervise authorized insurers on 26 June 2017; and taking over insurance intermediary regulation on 23 September 2019. The three former intermediary self-regulatory organisations were the Insurance Agents Registration Board under The Hong Kong Federation of Insurers, The Hong Kong Confederation of Insurance Brokers and Professional Insurance Brokers Association. [IA history](https://www.ia.org.hk/en/aboutus/role/history.html)
Under the Insurance Ordinance (Cap. 41), the IA’s work centres on industry stability and protecting existing and potential policyholders. It supervises compliance by authorized insurers and licensed insurance intermediaries, regulates intermediary conduct through licensing, and promotes prudent insurer management and proper conduct. It also reviews insurance law and regulatory arrangements, proposes reforms, studies industry issues and improves public understanding of insurance. [IA statutory functions](https://www.ia.org.hk/en/aboutus/role/statutory_functions.html)
The IA also develops regulatory strategies, supports sustainable market development and international competitiveness, and helps the Financial Secretary maintain Hong Kong’s financial stability through insurance-related measures. Within the Ordinance’s limits, it cooperates with local and overseas financial regulators, helps determine group supervisors for insurance groups and supervises groups for which it is appointed group supervisor. [IA statutory functions](https://www.ia.org.hk/en/aboutus/role/statutory_functions.html)
The Securities and Futures Commission (SFC) 證券及期貨事務監察委員會
The Securities and Futures Commission (SFC) is an independent statutory body established in 1989 to regulate Hong Kong’s securities and futures markets. Its investigative, remedial and disciplinary powers come from the Securities and Futures Ordinance (SFO), Cap. 571, and subsidiary legislation; the SFO commenced on 1 April 2003. Its objectives cover fair, efficient, competitive, transparent and orderly markets, investor protection, public education, less crime and misconduct, lower systemic risk and financial stability. [SFC role](https://www.sfc.hk/EN/about-the-sfc/our-role/), [SFO commencement record](https://apps.sfc.hk/edistributionWeb/api/news/list-content?lang=EN&refNo=04PR64), [regulatory objectives](https://www.sfc.hk/en/About-the-SFC/Our-role/Regulatory-objectives)
Schedule 5 to the SFO classifies activities by their nature, including: Type 1 dealing in securities; Type 2 dealing in futures contracts; Type 3 leveraged foreign exchange trading; Type 4 advising on securities; Type 5 advising on futures contracts; Type 6 advising on corporate finance; Type 7 providing automated trading services; Type 8 securities margin financing; Type 9 asset management; Type 10 providing credit rating services; Type 11 dealing in OTC derivative products or advising on OTC derivative products; and Type 12 providing client clearing services for OTC derivatives transactions. [Regulated activity categories](https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Do-you-need-a-licence-or-registration)
The SFC assesses whether practitioners are fit and proper through licensing standards, maintains a public register and sets conduct expectations through codes and guidelines. It monitors licensees’ financial soundness and compliance, and may investigate misconduct complaints and take appropriate action. Investment-linked long term insurance policies are collective investment schemes under the SFO, so product and offering-document regulation remains relevant; the SFC’s work includes authorising investment products and offering documents before distribution to retail investors. [Who the SFC regulates](https://www.sfc.hk/en/About-the-SFC/Our-role/Who-we-regulate), [ILAS licensing circular](https://apps.sfc.hk/edistributionWeb/api/circular/openFile?lang=EN&refNo=H557)
An investment-linked insurance policy is not itself a security under the SFO. A licensed insurance intermediary generally does not need an SFC licence for dealing in securities or advising on securities solely because they promote, offer or sell these policies, or advise on their underlying fund choices. However, additional functions forming an integral part of a securities dealing or advisory business may require SFC licensing and compliance with applicable SFO provisions and SFC requirements; an insurance intermediary licence does not cover every securities business. [ILAS licensing circular](https://apps.sfc.hk/edistributionWeb/api/circular/openFile?lang=EN&refNo=H557), [SFC licensing guidance](https://www.sfc.hk/en/Regulatory-functions/Intermediaries/Licensing/Do-you-need-a-licence-or-registration)
Practice
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