Newsletter
CLARIFICATIONS ON INSUR-ANCE ACT ARTICLE 146 PARAGRAPH 4
In an interpretation dated 7 September 2004, the Financial Supervisory Commission (FSC) stated that the phrase "other insurance-related enter-prises recognized by the competent authority" in Article 146 Paragraph 4 of the Insurance Act refers to enterprises that merely provide finance- or investment-related management, advisory, or consultancy services to insurance-related enter-prises, from which they derive fee income (including commissions, service fees, and man-agement performance incentives). However, the operational personnel of such enterprise must still meet the eligibility conditions set by the competent authority for its economic sector.
In another interpretation dated 9 November 2004, the FSC stated that "insurance-related enter-prises" as referred to in Article 146 Paragraph 4 of the Insurance Act includes financial holding companies and real estate leasing enterprises (as defined in Article 4 Paragraph 1 Subparagraph 10 of the Real Estate Securitization Act).