PORTUGAL Law and Practice Contributed by: João G Gil Figueira, Rodrigue Devillet Lima and Catarina Andrade Miranda, GFDL Advogados
7.4 Regulation of Programmers and Programming
8.2 Treatment of Different Types of Insurance In Portugal, there are several types of insurance, some mandatory by law or contract. As examples of man - datory insurance in Portugal, one can point out the following:
The Portuguese legislation closely follows Commis - sion Delegated Regulation (EU) 2017/589, delineating the regulatory technical standards that are the organ - isational requisites for investment firms involved in algorithmic trading. As per these standards, an invest - ment firm must ensure it has an adequate workforce equipped with the requisite skills and technical profi - ciency to oversee: • the pertinent trading systems and algorithms; • the monitoring and testing of those systems and algorithms; • the trading strategies implemented through those The investment firm bears full responsibility for its regulatory obligations, even in outsourcing or procur - ing software or hardware utilised in algorithmic trad - ing activities. It is worth noting that these regulations do not directly apply to programmers responsible for developing or creating trading algorithms or other electronic trading tools. trading systems and algorithms; and • compliance with its legal obligations. The insurance industry uses several underwriting pro - cesses, which will significantly depend on the type of business model developed by the industry participant. It should be noted that insurance activity is regulated in Portugal under Law No 147/2015 of 9 September and that various types of authorisations are available under this legal framework depending on the intended business model. Most fintechs in insurtech operate brokerage mod - els where data collection is remitted to a regulated insurance company, which will then apply its internal risk analysis methodology depending on the type of policy requested by the client. Insurance intermedia - tion is also regulated in Portugal, governed by Law No 7/2019 of 16 January. 8. Insurtech 8.1 Underwriting Processes
• work hazard insurance; • service hazard insurance; • personal accident insurance; • assistance to third parties; • damage insurance; • sickness insurance; • fire hazard insurance; • bond/deposit insurance; • civil liability; • theft insurance; and • life insurance.
In some cases, the minimum coverage and condi - tions set by a type of insurance will be defined by ordinances issued by the ministerial department with jurisdiction over the sector in question. Authorised insurance companies can engage in insur - ance activities in both the life and non-life sectors but must adopt distinct management for each activity, ensuring that both sectors are kept separate. Distinct minimum capital requirements are set for direct insur - ers and reinsurers and for life and non-life policies. The promotion and sale of distinct types of insurance products are subject to specific requirements, notably with regard to information duties. Legacy players tend to specialise in either life or non- life insurance policies.
9. Regtech 9.1 Regulation of Regtech Providers
Regtech providers are not directly regulated as long as they do not render any service directly regulated as a subcontracted function or provide what could be considered as reserved advice for some professions. With the rise of new fintech solutions leading to the development of new regulatory frameworks, the com - pliance cost for all players, whether new or legacy
654 CHAMBERS.COM
Powered by FlippingBook