Bank Negara issued Exposure Draft for Adjusters
02 August 2022
- a person intending to carry on adjusting business1;
- a person who is registered to carry on adjusting business under section 18(1) of the Financial Services Act 2013 (‘registered adjuster’); and
- shareholders of a registered adjuster.
The draft of the Adjusters’ Policy Document sets out BNM’s proposed enhanced registration requirements for a person intending to carry on adjusting business and prudential and conduct requirements which registered adjusters are required to comply with.
Among others, the Adjusters’ Policy Document sets out:
- the application procedures for registration as a registered adjuster;
- enhanced fit and proper requirements relating to the shareholders and key responsible persons2 of a registered adjuster;
- roles and responsibilities of the board and senior management;
- requirements relating to conduct of business;
- notification requirements on prescribed matters;
- enhancements of requirements relating to adjusting employees.
The Adjusters’ Policy Document will come into effect on the date of its issuance and will supersede BNM’s Registration Procedure to Carry on Adjusting Business issued on 21 December 2018.
The deadline for submission of comments on the draft Adjusters’ Policy Document is 1 September 2022
Alert by Grace Teo (Senior Associate) of the Corporate Practice of Skrine
This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact email@example.com.
Section 2(1) of the Financial Services Act 2013 defines ‘adjusting business’ as the business of investigating the cause or circumstances of a loss and ascertaining the quantum of the loss in relation to insurance or takaful claims.
The draft Adjusters’ Policy Document defines ‘key responsible persons’ as a director and chief executive officer who are responsible for the management of a registered adjuster.