Singapore and the UAE, alongside Argentina, South Africa, the EU and Qatar, Hong Kong and the UK are exempt by the Isle of Man from providing Key Information Documents (Kids) to clients that would fully disclose all fees and charges directly related to insurance contracts.
The Isle of Man’s Insurance (Conduct of Business) (Long Term Business) Code published last week creates two groups with different exemptions applying.
The first group is composed of Hong Kong, South Africa, the UK and the EU. All business conducted in those jurisdictions is exempt from providing key information documents for long term insurance products with an investment element, mandatory content of a Kid, issue of a Kid, policyholder acknowledgement of a Kid. These refer to paragraphs seven to 10 of the guidance note.
Singapore, Argentina, Qatar and the UAE make up the second group. These jurisdictions are exempt from all of the above and more. They are also exempt from providing summary information documents (Sid) for long term pure protection insurance products, mandatory content of a Sid, issue of the Sid, policyholder acknowledgement of a Sid. These refer to paragraphs seven to 14.
The full details of the long-awaited Isle of Man Financial Services Authority Conduct of Business (Long Term Business) Code that, among other factors, affects commission disclosure for financial advisers, can be read here.
The IoMFSA also provides a template text for intermediaries to give to clients since licensed and registered brokers in the UAE have to tell policyholders that they are not required to disclose commissions and fees.