4
Financial and Monetary Affairs
The IC(A)O will take effect in three stages to allow for a smooth transition from the existing regime to the IIA-administered regime. The Chairman and members of the IIA were appointed by the Chief Executive and took office in December. Pursuant to the ordinance, the IIA has been renamed the Provisional Insurance Authority (PIA). The PIA is vested with administrative powers to undertake essential preparatory work for the IIA to take over the functions of the Office of the Commissioner of Insurance and the three existing Self-regulatory Organisations during the next stages.
Risk-based Capital Framework for Insurance Industry
In September, the Insurance Authority (IA) released the conclusions of a consultation on a proposed Risk-based Capital (RBC) framework for the local insurance industry. The framework seeks to align Hong Kong's insurance regime with international standards and make capital requirements more sensitive to the level of risk that insurance companies are bearing. There is general industry support for the move towards an RBC framework. The IA will develop detailed rules and carry out quantitative impact studies before presenting more detailed proposals for further consultation.
Investor Education Centre
The Investor Education Centre, formed in 2012, seeks to raise financial literacy by providing comprehensive, credible and impartial financial information to better equip the public with the skills and knowledge to make informed financial decisions and to manage their money wisely. Its work is supported by Hong Kong's four financial regulators and the Education Bureau.
During the year, the centre held 158 community events reaching more than 21,500 people, and recorded over 550,0006 visitors to its website. It also launched the Hong Kong Financial Competency Framework to help establish behavioural standards for the public to emulate and for organisations to utilise when developing their initiatives. A research grant was set up to stimulate financial literacy research and promote robust partnerships between financial education practitioners and academics.
In November, the centre launched Hong Kong's inaugural financial literacy strategy, building on the results of a public consultation, feedback from a series of stakeholder workshops, international best practices and considerable community support. The Hong Kong Strategy for Financial Literacy focuses on raising awareness of the benefits of financial education, extending learning opportunities and enhancing co-ordination and collaboration among stakeholders. As of December 2015, 40 associations have signed up as supporting organisations to promote, together with 11 ambassadors, the benefits of financial education to the public.
Financial Dispute Resolution Centre
The Financial Dispute Resolution Centre administers in an independent and impartial manner a financial dispute resolution scheme to facilitate the resolution of monetary disputes between individual customers and financial institutions by 'mediation first, arbitration next. To raise public
5
6
The SFC, the HKMA, the Mandatory Provident Fund Schemes Authority and the OCI.
Aggregation of the monthly number of users who visited the IEC website at least once.
68