### Insurance Ordinance 《保險業條例》

95A. Interpretation of Part XIA
(1) In this Part—
associate (相聯者), in relation to a person—(a) means any of the following persons—
(i) the wife or husband, or a child or stepchild who is a minor, of the person;
(ii) a body corporate of which that person is a director;
(iii) a person who is an employee or partner of the person; and
(b) if the person is a body corporate, includes—
(i) a director of the body corporate;
(ii) a subsidiary of the body corporate; and
(iii) a director or employee of such a subsidiary;

chief executive (行政總裁), in relation to a designated insurance holding company, means a person (by whatever name called) who—(a) is in direct employment of, or is acting for or by arrangement with, the company; and
(b) is, whether alone or jointly with another person, responsible for the management, and the conduct of the business, of the company and its supervised group;

control function (管控職能), in relation to the supervised group of a designated insurance holding company, means any of the following functions that is likely to enable the individual responsible for the performance of the function to exercise a significant influence on the business of the group—(a) risk management function, which is a function to establish the strategies, policies and procedures to manage different types of key risks of the group;
(b) financial control function, which is a function to oversee all financial matters (including investments, accounting and financial reporting) of the group;
(c) compliance function, which is a function to establish and formulate the standards, policies and procedures to ensure the compliance with legal and regulatory requirements that are applicable to the group;
(d) internal audit function, which is a function to establish and implement an audit plan to examine and evaluate the adequacy and effectiveness of the controls to manage risks of the group;
(e) actuarial function, which is a function to evaluate and monitor—
(i) the technical provisions, premium and pricing strategies of any member of the group that carries on insurance business (insurer group member

### Insurance Ordinance 《保險業條例》

95B. Functions of Authority in relation to insurance groups
(1) For the purposes of this Part, the Authority has the following functions—
(a) to liaise and co-operate with any involved supervisor in any place outside Hong Kong in the determination of the group supervisors of insurance groups; and
(b) to regulate and supervise insurance groups of which the Authority is appointed as the group supervisor.
(2) Without limiting subsection (1)(b), for an insurance group to be regulated and supervised under that subsection, the Authority is to—
(a) lead and plan, and co-ordinate with other involved supervisors, the supervisory activities and measures in respect of the group;
(b) gather, and disseminate among other involved supervisors, information related to the supervision of the group;
(c) supervise the recovery and resolution planning of the group;
(d) establish arrangements with other involved supervisors for effective co-ordination and co-operation in emergency situations concerning the group;
(e) assess the financial situation, and the soundness of the business practices, of the group; and
(f) consider the appropriate measures to be taken by the Authority in relation to the group, including—
(i) designating an insurance holding company within the group to be regulated under this Part; and
(ii) supervising the designated insurance holding company’s compliance with this Part.

### Insurance Ordinance 《保險業條例》

95C. Designation by Authority
(1) The Authority may, by notice published in the Gazette, designate an insurance holding company within an insurance group as a designated insurance holding company if—
(a) the Authority is, in accordance with IAIS principles, appointed as the group supervisor of the group; and
(b) the Authority considers it appropriate for the company to be so designated.
(2) In determining whether it is appropriate for an insurance holding company within an insurance group to be designated, the Authority may, among other matters, take into account any of the following matters—
(a) the number of jurisdictions outside Hong Kong in or from which the insurance business of the group is carried on;
(b) the size of the insurance and other businesses of the group;
(c) any criteria promulgated by an international standards setting body (including the International Association of Insurance Supervisors) that the Authority considers relevant.
(3) Before designating an insurance holding company, the Authority must serve on the company a preliminary written notice stating—
(a) that the Authority is considering designating the company;
(b) the reasons why the Authority is considering doing so; and
(c) that the company may, within the period specified in the preliminary notice—
(i) make written representations to the Authority; and
(ii) if the company so requests, make oral representations to a person appointed for that purpose by the Authority.
(4) If representations are made under subsection (3), the Authority must take them into account before making the designation.
(5) If the Authority decides to designate an insurance holding company, the Authority must inform the company of the decision by a written notice.
(6) A designation—
(a) takes effect on the date specified in the notice under subsection (1); and
(b) has effect until it is withdrawn under section 95E(1) or (3).
(7) A notice under subsection (1) is not subsidiary legislation.

95D. Supervised group of designated insurance holding company
(1) Subject to subsection (2), the supervised group of a designated insurance holding company consists of the following entities (default members

### Insurance Ordinance 《保險業條例》

95E. Withdrawal of designation
(1) The Authority may, by notice published in the Gazette, withdraw the designation of a designated insurance holding company if the Authority considers it is no longer appropriate for the company to be designated.
(2) In determining whether it is no longer appropriate for a designated insurance holding company to be designated, the Authority may, among other matters, take into account any of the matters specified in section 95C(2).
(3) The Authority must, by notice published in the Gazette, withdraw the designation of a designated insurance holding company if the appointment of the Authority as the group supervisor of the insurance group to which the company belongs (as mentioned in section 95C(1)(a)) is no longer in effect.
(4) If the Authority decides to withdraw the designation of a designated insurance holding company under subsection (1) or (3), the Authority must inform the company of the decision by a written notice.
(5) A withdrawal under subsection (1) or (3) takes effect on the date specified in the notice under that subsection.
(6) A notice under subsection (1) or (3) is not subsidiary legislation.

95F. Payment of prescribed fees
(1) A designated insurance holding company must pay to the Authority each of the following prescribed fees no later than the payment due date prescribed for the fee—
(a) a designation fee payable on designation;
(b) fees payable at prescribed intervals.
(2) A designated insurance holding company must, within the period specified in a written notice served by the Authority on the company, deposit with the Authority a written return in the specified form for enabling the Authority to ascertain the amount of a fee payable under subsection (1) by the company.
(3) A designated insurance holding company that contravenes subsection (2) commits an offence and is liable on conviction—
(a) to a fine at level 4; and
(b) in the case of a continuing offence—to a further fine of $1,000 for every day during which the offence continues.
(4) In this section—
prescribed (訂明) means prescribed by a regulation made under section 128.