AMENDMENT TO THE GUIDELINES FOR BANKS, INSURANCE COMPANIES, INSURANCE AGENCIES OR INSURANCE BROKERS ENGAGING IN BANCASSURANCE BUSINESS

01/01/2010

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On 25 November 2009, the Financial Supervisory Commission (FSC) promulgated a new provision, Article 11-1 of the Guidelines for Banks, Insurance Companies, Insurance Agencies or Insurance Brokers Engaging in Bancassurance Business (Guidelines), to help customers better distinguish between the savings and insurance business and to protect their rights and interests. Listed below are the major points of the Guidelines:
Banks engaging in the bancassurance business must clearly define or label their business, clerks and services for the customers' comprehension and must adhere to the following:
l	The area for the bancassurance business must be in a specific place, clearly separate from banking and other businesses and should be marked with names of insurance companies, insurance agencies or insurance brokers in order to avoid misleading customers.
l	Clerks engaging in bancassurance, when providing services related to insurance products, must voluntarily present relevant qualifications or certificates to the customers to ensure that the customers comprehend that the clerks are engaged in the marketing of insurance products.
l	Clerks engaging in bancassurance must indicate the difference between the insurance products and the banking business and the allocation of liabilities for any disputes arising therefrom.
Considering that it takes time for banks to put up distinguishing signs for the savings and bancassurance counters, the FSC permits banks to put up all the signs no later than 1 February 2010.