In exercise of the powers conferred by sub section 1 of Section 28 read with Section 12 and 13 of the International Financial Services Centres Authority Act

## Report on the International Financial Services Centres Authority Registration of Insurance Business Amendment Regulations, 2021 **1. Executive Summary:** This report analyzes the International Financial Services Centres Authority (IFSCA) Registration of Insurance Business Amendment Regulations, 2021, as published in the Gazette of India on January 5, 2022. This amendment modifies the International Financial Services Centres Authority Registration of Insurance Business Regulations, 2021, by altering the certification requirements for insurance business registration. The key change involves expanding the list of qualified professionals who can provide certificates of compliance. This report details the specific changes, their likely rationale, and potential impact on applicants seeking registration in International Financial Services Centres. **2. Introduction:** The purpose of this report is to provide a comprehensive overview of the International Financial Services Centres Authority Registration of Insurance Business Amendment Regulations, 2021, based solely on the information provided in the official gazette notification. This report aims to inform stakeholders about the specific changes introduced by this amendment and their potential implications. **3. Policy Overview:** * **Amendment to:** International Financial Services Centres Authority Registration of Insurance Business Regulations, 2021 (published October 20, 2021, vide notification No. IFSCA202122GNREG016). * **Core Objective(s):** The primary objective of the amendment, as inferred from the text, is to clarify and potentially broaden the scope of qualified professionals who can certify compliance for insurance business registration within International Financial Services Centres. This appears to be done to streamline the registration process. **4. Background and Rationale:** This amendment seems designed to address a potential constraint in the original regulations regarding who could provide the necessary certification for compliance. The change suggests a desire to provide applicants with a wider pool of qualified professionals to choose from, potentially reducing bottlenecks and facilitating smoother registration processes. The amendment might stem from feedback indicating a need for greater flexibility in certification options. **5. Key Provisions / Changes:** This amendment specifically alters the certification requirements within the registration process. * **Specific Part Changed:** The amendment modifies Serial number 12, column 2 of FORM B and Serial number 14, column 2 of FORMC of FIRST SCHEDULE in the Principal Regulations. * **New Rule/Provision:** The new provisions in both instances now read: "Certificate from CACSCMA, etc.: Provide a certificate from a practicing Chartered Accountant in India, a practicing Company Secretary in India, a practicing Cost Accountant in India or any other person with appropriate qualification, as specified by the Authority, certifying that all the requirements of the Act read with IFSCA Registration of Insurance Business Regulations, 2021 and notifications issued under section 2CA of the Act have been complied with by the Applicant." * **Difference/Effect of Change:** The change clarifies and expands the scope of eligible professionals to include "any other person with appropriate qualification, as specified by the Authority," in addition to practicing Chartered Accountants, Company Secretaries, and Cost Accountants in India. This provides IFSCA with the flexibility to recognize additional qualified individuals who can certify compliance. This could potentially broaden the pool of eligible certifiers and ensure that the applicant has a wider range of options to choose from. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this amendment are: * Insurance companies seeking registration to conduct business within International Financial Services Centres. * Practicing Chartered Accountants, Company Secretaries, and Cost Accountants in India. * Other professionals with qualifications deemed appropriate by the IFSCA for certification purposes. * The International Financial Services Centres Authority itself. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The International Financial Services Centres Authority (IFSCA) is responsible for implementing and overseeing the regulations. * **Timelines/Procedures:** The amendment came into force on the date of its publication in the Official Gazette (January 5, 2022). The specific procedures for determining "appropriate qualification" for other professionals are not detailed in this text and would likely be determined by IFSCA. * **Specific Changes to Implementation:** The implementation change relates specifically to the acceptance of certificates from a broader range of qualified professionals. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these specific changes include: * A potentially streamlined registration process for insurance companies due to a larger pool of eligible certifiers. * Increased flexibility for IFSCA to recognize and utilize professionals with diverse qualifications for compliance certification. * Potentially reduced costs for applicants if the increased competition among certifiers leads to lower fees. * Greater clarity for applicants regarding the acceptable qualifications for compliance certification. **9. Conclusion:** The International Financial Services Centres Authority Registration of Insurance Business Amendment Regulations, 2021, represents a refinement of the existing regulatory framework. By broadening the scope of qualified professionals eligible to provide compliance certifications, the amendment seeks to enhance the efficiency and accessibility of the insurance business registration process within International Financial Services Centres. The change provides IFSCA with the necessary flexibility to adapt to evolving industry needs and ensure a robust yet streamlined regulatory environment. This amendment should be viewed as a positive step towards facilitating greater participation and innovation within the insurance sector in these specialized financial zones.

Key Entities Referenced