The Financial Supervisory Commission promulgated the amendments to regulations “The Compliance Measures for Information Disclosure Requirements of Investment-Linked Insurance.”  Major changes and the implications on the industry include:

  1. Insurance companies are required to incorporate the compliance measures into their internal control system which also provides a solid ground for regulator to enforce the law effectively;
  2. Disclosure requirements for investment-linked product sales materials (other than brochures) are relaxed to avoid repeated disclosure;
  3. More stringent disclosure requirements for rebates in relation to structured products and mutual funds are put in place so as to be consistent with regulations applicable to distributors of similar products, which will however increase insurers’ compliance burden significantly.