QFC Regulatory Authority signs agreement with the International Association of Insurance

The Qatar Financial Centre (QFC) Regulatory Authority (QFCRA) recently announced that it is a signatory to the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU). The IAIS represents insurance regulators and supervisors from 190 jurisdictions and issues global insurance principles, standards and guidance papers for supervisors on insurance supervision. Becoming a signatory to the MMoU is a significant development for the QFCRA, as it will enable the QFCRA to exchange supervisory information globally with other insurance supervisors potentially strengthening its already considerable governance and enforcement structures.

Pursuant to the terms of the MMoU, the QFCRA will have a formal basis for cooperation and information exchange with other "Signatory Authorities" in relation to the supervision of insurance companies where cross-border issues arise (the term "Signatory Authorities" is defined as "any insurance industry supervisor who is an IAIS member or is represented by an IAIS member"). The scope of the MMoU extends to not only issues relating to the supervision of insurance companies (such as licensing, ongoing supervision, and winding-up procedures), but also includes the supervision of insurance intermediaries and AML / CFT matters.

Although the MMoU clarifies that it is not intended to create legally binding obligations or to modify or supersede any jurisdictional law, nor to affect any provisions under multilateral or bilateral agreements, the Signatory Authorities are expected to provide one another with the "fullest" assistance possible (consistent with their regulatory functions).

Confidentiality

One concern in respect of any information sharing arrangement is the way in which confidential information is handled. Any information shared between Signatory Authorities is subject to a strict confidentiality regime as set out in the MMoU. Where a "Requesting Authority" (a Signatory Authority requesting information from another Signatory Authority) requests information of a confidential nature, the Requested Authority (the Signatory Authority from whom the information is being sought) has the discretion to determine on a case-by-case basis whether to disclose such information.

Interestingly, Signatory Authorities may only make information requests where they have a legitimate interest in the information they are seeking. The implementation of confidentiality in respect of...

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