The International Financial Services Centres Authority (IFSCA) has issued the International Financial Services Centres Authority (Investment by International Financial Service Centre Insurance Office) Regulations, 2022. The regulations aim to create a regulatory framework and formulate processes related to investment of assets by an International Financial Service Centre Insurance Office (IIO). These regulations were issued on 12th January, 2023 and come into force from that date.
The regulations provide for the following:
An International Financial Service Centre Insurance Office (IIO) incorporated in an International Financial Services Centre (IFSC) shall undertake investment of assets in accordance with the provisions of the notified regulations.
An IIO that is not incorporated in an IFSC can chose to follow norms related to investment of assets as applicable to its parent entity or as specified under these regulations.
Where an IIO registered with the Insurance Regulatory Development Authority of India (IRDAI) and forms a branch of foreign insurer or Lloyd’s India, it may either chose to follow norms related to investment of assets as applicable to its parent entity or as specified under the notified regulations.
