While insurance companies and professional bodies support the idea of having a powerful new regulator supervising the industry, insurance agents and brokers oppose the reform, reports the South China Morning Post.
In July this year, Secretary for Financial Services and the Treasury Chan Ka-keung proposed an authority which would have the power to regulate insurance companies and agents.
The new authority, if approved by legislators, would have an annual budget of HK$240 million financed by licence fees paid by insurers and salespersons, together with a 0.1 per cent levy on insurance premiums paid by policyholders, says the Post.
Bank staff, who sell insurance, however, would continue to be regulated by the Hong Kong Monetary Authority, a proposal fully opposed by the industry.
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