On Aug. 15, HKIA issued reminder on financial statements submission.
HKIA reminded responsible officers of licensed insurance broker firms re submission of audited financial statements and auditor’s report under the Insurance ordinance (IO).
Submission Reminder
Documents to be submitted include audited financial statements, auditor’s report on statements, and another report verifying compliance with the Insurance (financial and other requirements for licensed insurance broker companies) rules (Cap.41L).
Doing this demonstrates robust financial controls and processes through independent audits, enhances client confidence by meeting regulatory deadlines and requirements.
Non-compliance can result in weakened client trust due to perceived poor controls.
Failure to submit required documents within stipulated time frame is offense, leading to level 6 fine, if offense continues, additional fine of HKD 500 for each day of delay.
If delays are due to reasons beyond the broker company's control, they may apply to the HKIA for an extension under section 79 of the IO; must be done before deadline.
Process and timing for applying for a submission extension, including the need for submitting specific documents, application fee, are detailed in an annex to the letter.
Starting from Sep. 23, 2024, application fee will be required for processing submission extension requests; fees are adjusted to reflect actual cost of processing applications.
Applications for extensions submitted before Sep. 23, 2024 are not subject to fee.
Strict enforcement actions are planned against companies failing to meet submission deadline or obtain necessary extension, emphasizing critical nature of requirement.
Effectiveness
Special attention is advised for companies with a financial year ending on Mar. 31, 2024, with submission deadline for required documents set for Sep. 30, 2024.
