29 September 2021
On 30 August 2021, Bank Negara Malaysia (“BNM”) issued an exposure draft which sets out BNM’s proposed requirements on bancassurance / bancatakaful arrangements (i.e. the distribution or marketing arrangements or agreements involving licensed persons (including conventional banks, Islamic banks, investment banks and prescribed institutions) on the sale or marketing of all types of insurance or takaful products).
The requirements in the exposure draft include:
- general governance principles of bancassurance / bancatakaful arrangements to be observed by licensed persons or bancassurance / bancatakaful partners;
- transparency and disclosure requirements when marketing insurance or Takaful products to consumers by licensed persons or bancassurance / bancatakaful partners;
- training requirements for staff of bancassurance / bancatakaful partners; and
- reporting requirements imposed on licensed persons or bancassurance / bancatakaful partners.The consultation period closed on 30 September 2021.