The United Arab Emirates Insurance Authority (IA) is to delay the implementation of its game-changing BOD-49 by six months, International Investment has learned.
In a translated document shown to International Investment, it states that "The Director General of the Commission and the approval of the Board of Directors decided: Article 1 extends the period granted to avoid Rulers of the Insurance Authority Board of Directors Decision No. (49) of 2019 regarding life and family Takaful insurance instructions for an additional period of six months, starting from 16/4/20."
As reported the new regulation introduced last year by the UAE Insurance Authority (IA). The new rules, known as Circular 12, relate to life insurance and family takaful insurance will introduce a 4.5% commission cap on the sale of lump sum portfolio bonds or offshore bonds. However, today's announcement is set to delay implementation by six months up until at least October 16, 2020.
Some insurance companies operating in the UAE had privately voiced concerns that the initial six months period was too quick and that a longer period was necessary to effectively implement the IA's decision.
At time of publication the IA had not yet published details of its decision to delay the BOD-49 implementation on its website.