On Feb. 3, 2025, DEN EM issued executive order amending executive order of Dec. 16, 2024 on competence and good reputation requirements for employees of insurance companies, reinsurance companies and employees of an insurance intermediary.
Order amended to add paragraph 9 on employees who, from Jan. 1, 2025 to Feb. 28, 2025 held a license as a financial adviser, and submitted application for authorization to carry out insurance distribution as an insurance intermediary before Feb. 28, 2025.
Where the employee has worked in one or more of the areas of work mentioned in section 4(1)-(4), for a period between Jan. 1, 2024 and Feb. 28, 2025 in a company licensed as a financial adviser, they may continue within the same areas of work.
Provided employee passes relevant periodic training examination before Jun. 1, 2026.
Executive order enters into force on Mar. 1, 2025.
DEN FSA issued a consultation on the executive order amending the executive order on competence and good reputation requirements for employees of insurance companies, reinsurance companies, and employees of insurance or reinsurance intermediary.
Follows DEN PRL Nov. issued bill to abolish financial adviser licenses, see #233490.
Consultation
On Nov. 5, 2024, DEN PRL proposed a bill to abolish the financial advisor license.
Section 17(5) of the proposed bill means that companies that are currently licensed as financial advisors and wish to continue to provide insurance distribution to private customers must apply for a license as an insurance intermediary by Feb. 28, 2025.
As per executive order 2021-06-02 no. 113, employees of insurance intermediaries must pass an exam before they are permitted to practice insurance distribution.
New paragraph of the amending executive order establishes a transitional arrangement that ensures that employees of a financial advisor who apply for authorization as an insurance intermediary before Feb. 28, 2025 have sufficient time to pass relevant test.
The amending executive order aims to ensure that financial advisers who are required to be licensed as insurance intermediaries can continue to engage in insurance distribution even if employees have not yet passed test demonstrating competence.
Employees will have the chance to pass a continuing education test by Jun. 1, 2026.
Financial advisors' employees will only be covered by the transitional scheme for competence requirements re insurance private customers, and not in any other areas.
Consultation
Feedback on draft amending executive order should be submitted by Jan. 10, 2025.
The final order is expected to come into force on Mar. 1, 2025.
In Dec. 2024, DEN EM issued order on staff competence requirements, #237946.
Feb. 2025 Executive Order
On Feb. 3, 2025, DEN EM issued executive order amending executive order of Dec. 16, 2024 on competence and good reputation requirements for employees of insurance companies, reinsurance companies and employees of an insurance intermediary.
Order amended to add paragraph 9 on employees who, from Jan. 1, 2025 to Feb. 28, 2025 held a license as a financial adviser, and submitted application for authorization to carry out insurance distribution as an insurance intermediary before Feb. 28, 2025.
Where the employee has worked in one or more of the areas of work mentioned in section 4(1)-(4), for a period between Jan. 1, 2024 and Feb. 28, 2025 in a company licensed as a financial adviser, they may continue within the same areas of work.
Provided employee passes relevant periodic training examination before Jun. 1, 2026.
Executive order enters into force on Mar. 1, 2025.
Regulators
DEN EM; DEN FSA
Entity Types
IB; Ins
Reference
OG, 2/4/2025; Ord 94, 2/3/2025; CP 24-017565, PR, 11/29/2024
