BNM has on 3 February 2023 issued a discussion paper on its proposed Financial Inclusion Framework 2023-2026 ("Framework") and inviting feedback by 31 March 2023.
The Framework is intended to serve as a four-year strategic roadmap to advance financial inclusion and meet the goals envisioned in the Financial Sector Blueprint 2022-2026. At the national level, advancing the financial inclusion agenda remains a key priority under the Twelfth Malaysia Plan 2021- 2025 (Rancangan Malaysia Kedua Belas, RMK12). The vision of the Framework is to provide a more expansive and holistic approach to achieve broader development outcomes and improve the financial well-being as well as the standard of living in Malaysia.
Bank Negara Malaysia issues Policy Document on Liquidity Facility to Licensed Insurers and Takaful Operators
Bank Negara Malaysia ("BNM") has on 10 February 2023 issued a policy document on Liquidity Facility to Licensed Insurers and Takaful Operators. This policy document comes into effect on 10 February 2023 and is applicable to all licensed persons.
Licensed person refers to:
- a licensed insurer including a professional reinsurer; and
- a licensed takaful operator including a professional retakaful operator.
BNM issues Policy Document on Investment-linked Business
BNM has on 13 February 2023 issued a policy document on Investment-linked Business. This policy document is applicable to:
- licensed insurers carrying on life business, which offer, market or sell investmentlinked policies; and
- licensed takaful operators carrying on family takaful business, which offer, market or sell investment-linked takaful certificates,
This policy document stipulates key changes in the following areas:
- implementation of Minimum Allocation Rates as per the LIFE Framework to protect the account value of policy owners/takaful participants;
- introduction of standards for sustainability tests to ensure proper management of long-term persistency of investment-linked policy/takaful certificates; and
- enhancements to the product illustration format.
BNM issues Policy Document on Universal Life Business
BNM has on 13 February 2023 issued a policy document on Universal Life Business. This policy document is applicable to licensed insurers carrying on life business, which offer, market or sell universal life policies ("universal life business").
This policy documents sets out the following:
- the roles and responsibilities of the board and senior management in the licensed insurer's management of universal life business;
- overall governance in the management of universal life business, including product design, imposition and revision of fees and charges, and management of expenses;
- investment, valuation and capital treatment of the universal life fund; and
- disclosure requirements to promote transparency to universal life policy owners.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.