The International Financial Services Centres Authority on 21st November 2022, notified the IFSCA (Preparation & Presentation of Financial Statements of IIOs) Draft Regulations, 2022 which shall be applicable for all Insurance contracts entered into by the IIOs.
These regulations aim to put in place the process of Preparation of Financial Statements of the International Financial Service Centre Insurance Offices (IIO).
The Regulations have three Schedules based on business category:
- Schedule A for IIOs carrying on Life insurance business or composite business comprising both Life, General or Health Insurance business.
- Schedule B for IIOs carrying on General Insurance business or Health Insurance business or composite of General and Health Insurance business or Reinsurance
- Additionally, Schedule C, for IIOs in an incorporated form in the IFSC.
The proposed IFSCA (Preparation & Presentation of Financial Statements of IIOs) Regulations, 2022 inter alia, include the following:
Principles for determining value of investments, especially in categories like Real Estate Investment Property, Debt securities, Listed and Unlisted equity securities, Loans etc.
For IIOs who is set up in an unincorporated form in an IFSC, financial statements shall be in accordance with the accounting standards applicable to its parent entity, as specified by its home country regulatory or supervisory authority. For others, i.e. those incorporated in the IFSC shall prepare it as specified in these Regulations.
IFSCA has requested general public and stakeholders to forward their comments / suggestions through e-mail to Insurance Dept. at insurance-dept@ifsca.gov.in with copy to Mrs. Riddhi Bhandari at riddhi.bhandari@ifsca.gov.in and Nitin Gupta at g.nitin@ifsca.gov.in by 12th December, 2022. It is further requested to provide comments in MS Word or MS Excel format only.
