Accounting Alerts

IC Advisory No. RS2023-006 FAQs and Clarifications on IC CL No. 2021-65

This Accounting Alert is issued to circulate Insurance Commission (IC) Advisory No. RS2023-006 (the Advisory) dated March 13, 2023.

ln relation to the implementation of lC CL No. 2021-65 or the "Revised On-Site Examination and Off-site Verification Rules and Procedures" starting May 2023 submissions, IC issues an Advisory on frequently asked questions and clarifications during the lC's training sessions to assist the preparers of the documentary requirements and/or financial statements and their external auditors in the understanding of and compliance with the requirements of the revised CL.

Frequently Asked Questions (FAQs)

The Advisory contains FAQs in relation to compliance with the Fiduciary Requirement and Net Worth Requirement as stipulated in IC CL No. 2021-65 and some FAQs in relation to Documentary and Disclosure Requirement issues. Kindly see attached copy of the Advisory for the clarifications made on these FAQs.

Disclosure of Minimum Information

As stated in Annex A of IC CL No. 2021-65, the insurance and/or reinsurance broker has two options to disclose the following minimum information in its notes to the financial statements (Option A) or in a separate supplementary report (Option B):

  1. Segregation of Clients' Money Account;
  2. Net Worth Compliance;
  3. Fiduciary Ratio Computation; and,
  4. Offsetting Arrangements.

The Advisory contains illustration (see Annex A and B) on how to present the above minimum information using the said two options.

 

See attached IC Advisory No. RS2023-006 for further details.