Bank Negara issues Policy Document on Adjusters
08 June 2023
- a person intending to carry on adjusting business1;
- a person who is registered under section 18(1) of the Financial Services Act 2013 (‘FSA’) to carry on adjusting business (‘registered adjuster’); and
- shareholders of a registered adjuster.
The Adjusters’ Policy Document came into effect on 1 June 2023 and supersedes BNM’s Registration Procedure to Carry on Adjusting Business issued on 21 December 2018.
The Adjusters’ Policy Document follows on from an exposure draft issued by BNM in July 2022 and sets out enhanced 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;
- enhanced requirements relating to adjusting employees3.
A set of revised
Frequently Asked Questions were issued by BNM on 1 June 2023 to provide clarification to applicants on the requirements for carrying on adjusting business under the FSA, including the standards and guidelines applicable for such business.
Alert by Grace Teo (Senior Associate) and Faith Chan (Associate) of the Corporate Practice of Skrine
1 Section 2(1) of the FSA defines ‘adjusting business’ as the business of investigating the cause and circumstances of a loss and ascertaining the quantum of the loss in relation to insurance or takaful claims.
2 The Adjusters’ Policy Document defines ‘key responsible persons’ as a director and chief executive officer who are responsible for the management of a registered adjuster.
3 The Adjusters’ Policy Document defines ‘adjusting employee’ as a person who is employed by a registered adjuster and meets the qualification criteria set by BNM to carry out adjusting work.
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 skrine@skrine.com.