MACAU SAR, CHINA Law and Practice Contributed by: Carlos Eduardo Coelho, MdME
Proposed Implementation of a Risk-Based Capital Regime Discussions regarding a risk-based capital (RBC) regime are currently under way, with implementation expected in 2027. This RBC regime will establish a structured approach to capital requirements based on the risk levels associated with various insurance oper- ations. Its goals are to improve governance, enhance risk management practices and strengthen the overall stability of the financial system. Most importantly, it aims to bolster the industry’s resilience and enhance protection for policyholders.
lines aim to protect consumers and ensure transpar- ency. There are several key requirements: • clear separation between referral and marketing or regulated activities; • due diligence on referrers; • monitoring sales practices; and • prior submission of referral models for AMCM approval. Insurers must also maintain proper documentation, prevent conflicts of interest and provide post-sale confirmations to ensure that clients understand prod- uct features and risks.
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