Hong Kong Ordinances

INSURANCE COMPANIES ORDINANCE - SECT 70

Approval of bodies of insurance brokers

(1) The Insurance Authority has the power to approve a body of
insurance brokers that complies with this section and pays the prescribed fee
for approval or renewal of approval.

(2) Before the Insurance Authority approves a body of insurance  brokers, he
is required to satisfy himself that the body has adequate provision in its
regulations for members to comply with the minimum requirements specified by
the Insurance Authority for-

   (a)  qualifications and experience;

   (b)  capital and net assets;

   (c)  professional indemnity insurance;

   (d)  keeping of separate client accounts;

   (e)  keeping proper books and accounts, and to ensure that its constituent
        members are fit and proper persons to be insurance brokers.

(3) The Insurance Authority is required to be satisfied that the body of
insurance brokers seeking approval-

   (a)  is managed or supervised by persons who are fit and proper persons to
        manage or supervise a body of insurance brokers; and

   (b)  has an appropriate system of disciplinary procedures in place to deal
        with breaches of proper conduct by members of the body.

(4) An approved body of insurance brokers is required to maintain at its
registered office or principal place of business in Hong Kong a register of
its members in which it will record the information required by the
Insurance Authority for each member of the approved body and to keep the
register open to the public during normal office hours.

(5) The Insurance Authority is required to maintain a register of approved
bodies of insurance brokers approved by him under subsection (1), and to keep
the register open to the public during normal office hours on payment of the
prescribed fee.

(6) The Insurance Authority has the power by regulation-

   (a)  to prescribe the fees payable under this section; and

   (b)  to prescribe further requirements relating to the ability of an
        applicant or an authorized insurance broker to competently carry out
        his functions as an insurance broker.

(7) The Insurance Authority has the power to require a body of
insurance brokers and an insurance broker who is a member of a body of
insurance brokers approved under this section to supply information that
verifies the body's, or the insurance broker's, compliance with this section.

(8) The Insurance Authority has the power to impose conditions on the approval
of a body of insurance brokers to ensure that its members function properly
and that policy holders and potential policy holders are protected. (Part X
added 76 of 1994 s. 4)