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 Insurance Intermediary Amendment Regulations, 2021 **1. Executive Summary:** This report analyzes the International Financial Services Centres Authority (IFSCA) Insurance Intermediary Amendment Regulations, 2021. This amendment modifies the existing International Financial Services Centres Authority Insurance Intermediary Regulations, 2021. The key change involves specifying the qualifications for individuals who can provide certificates of paid-up capital, net worth, and regulatory compliance for Insurance Intermediaries operating within the International Financial Services Centres (IFSC). The amendments aim to ensure qualified professionals oversee compliance and financial reporting by IIIOs. **2. Introduction:** This report provides an overview and analysis of the International Financial Services Centres Authority Insurance Intermediary Amendment Regulations, 2021, based solely on the provided policy text. It aims to inform stakeholders, particularly those operating within or interacting with the IFSC, about the changes and their potential implications. **3. Policy Overview:** * **Amendment To:** International Financial Services Centres Authority Insurance Intermediary Regulations, 2021 * **Core Objective(s):** To ensure the financial soundness and regulatory compliance of Insurance Intermediaries operating within the International Financial Services Centres by specifying and broadening the range of qualified professionals who can certify paid-up capital, net worth, and compliance with regulations. **4. Background and Rationale:** The amendment seems designed to address a potential gap in the original regulations regarding the qualifications of individuals certifying financial and regulatory compliance for Insurance Intermediaries. By explicitly stating acceptable qualifications (Chartered Accountant, Company Secretary, Cost Accountant, or other qualified person specified by the Authority), the amendment likely aims to strengthen the oversight and accountability within the IFSC's insurance sector. **5. Key Provisions / Changes:** The International Financial Services Centres Authority Insurance Intermediary Amendment Regulations, 2021 introduce the following specific changes: * **Change 1:** Sub-regulation 6 of regulation 13 of the Principal Regulations is amended. * **Original Rule:** The original rule is not provided in the text, only the substitute is. * **New Rule:** "The IIIO shall submit to the Authority a paidup capital and networth certificate issued by its statutory auditor, 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, on half yearly basis." * **Effect of Change:** This change clarifies who is authorized to issue the paid-up capital and net worth certificate for IIIO. * **Change 2:** Sub-regulation 3 of regulation 22 in the Principal Regulations is amended. * **Original Rule:** The original rule is not provided in the text, only the substitute is. * **New Rule:** "An insurance intermediary shall, along with the audited accounts, furnish a certificate by 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, confirming compliance with these regulations." * **Effect of Change:** This change clarifies who is authorized to issue the compliance certificate that must accompany audited accounts. * **Change 3:** Serial No. 12, column 2 of FORM B of SCHEDULE VI in the Principal Regulations is amended. * **Original Rule:** The original rule is not provided in the text, only the substitute is. * **New Rule:** "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, confirming that all applicable regulatory requirements have been complied with by the Applicant." * **Effect of Change:** This change clarifies who is authorized to issue the compliance certificate required in FORM B of SCHEDULE VI. **6. Target Audience and Stakeholders:** Based on the provided text, the target audience and stakeholders directly affected by these amendments include: * International Insurance Offices (IIIOs) operating within the International Financial Services Centres. * Practicing Chartered Accountants in India. * Practicing Company Secretaries in India. * Practicing Cost Accountants in India. * Other persons with appropriate qualifications, as specified by the Authority. * The International Financial Services Centres Authority (IFSCA). **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The International Financial Services Centres Authority (IFSCA) is responsible for implementing and enforcing these regulations. * **Timelines or procedures:** The amended regulations regarding paid-up capital and net worth certification require the submission of certificates on a half-yearly basis. * **Specifically related to changes:** The changes require Insurance Intermediaries to engage with qualified professionals (Chartered Accountants, Company Secretaries, Cost Accountants, or others specified by the Authority) to obtain necessary certifications. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these amendments is to strengthen the regulatory framework governing Insurance Intermediaries within the IFSC. The changes are likely to: * Enhance the credibility and reliability of financial reporting by Insurance Intermediaries. * Improve regulatory compliance within the IFSC's insurance sector. * Provide greater assurance to stakeholders regarding the financial stability and operational integrity of IIIOs. * Increase accountability by specifying authorized professional qualifications for regulatory certifications. **9. Conclusion:** The International Financial Services Centres Authority Insurance Intermediary Amendment Regulations, 2021 represent a refinement of the existing regulatory framework. By specifying the qualifications of professionals who can certify financial and regulatory compliance, the amendment aims to enhance the oversight and stability of the insurance sector operating within the International Financial Services Centres. These changes are significant for Insurance Intermediaries, relevant professional bodies, and the IFSCA itself, contributing to a more robust and transparent financial ecosystem within the IFSC.

Key Entities Referenced