The response is one of four response documents posted yesterday and today on the Monetary Authority of Singapore’s website that relate to insurance industry topics in Singapore.
The Consultation Paper on Review of Requirements on Investment Activities of Insurers, as the first one is called, contains responses to proposals set out in January which related to what the MAS called “qualitative requirements on investment activities of insurers, and the implementation timeline”.
Explaining its bias in favour of local management being involved with insurers’ investment committees, the MAS says in its seven-page response document that it “is of the view that the [insurer’s] local management should be involved in the implementation of the board-approved investment policy…[and] therefore requires the establishment of a management investment committee at the Singapore entity level”.
This committee, it adds, “shall include the principal officer (PO) and chief investment officer, or an officer in a similar capacity responsible for the investment functions.
"For direct life insurers, the committee shall also include the appointed actuary.
“However, if the PO can carry out the function required of the investment committee and assumes concurrent responsibility as the officer responsible for the investment functions, and the nature, size and complexity of an insurer’s risks and investments permit…the ‘committee’ can just comprise the PO.”
Among the MAS’s other responses to comments contained in the consultation was the observation that a proposed implementation date of 1 Jan 2014 is “reasonable”, notwithstanding suggestions it be deferred to 31 Dec 2014 or 1 Jan 2015.
The other three insurance-related consultation response documents posted yesterday and today are:
- A response to feedback received on a consultation on proposed amendments to certain public disclosure requirements having to do with new capital disclosure requirements issued in 2012
- A response to feedback received on a consultation on Enterprise Risk Management for Insurers
- A response to feedback received on a consultation paper on Draft Corporate Governmance Regulations and Guidelines for Insurers, and Guidelines for Banks and Insurers
A fifth consultation, on Recommendations of the Financial Advisory Industry Review, is still open, and may be viewed and downloaded by clicking here.