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Singapore, Germany to Cooperate on Banking and Insurance Regulation
(BestWire Services Via Acquire Media NewsEdge) The Monetary Authority of Singapore said it signed a memorandum of understanding with the Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin), the prudential regulator of financial institutions in Germany, for supervisory cooperation between the two authorities in banking and insurance.
According to the Singapore regulator, the agreement paves the way for ?mutual assistance and sharing of supervisory information between the two authorities to strengthen the supervision of cross-border operations of financial institutions under their purview.?
The memorandum was signed by the Singapre authority's deputy managing director, Teo Swee Lian, and BaFin?s president, Jochen Sanio.
In addition to Singapore, BaFin signed a memorandum with the Insurance Authority of Hong Kong in October 2008.
BaFin said the agreement allows for closer cooperation and establishes a formal basis for consultation, cooperation and coordination between both regulatory authorities. It also provides both parties a channel for information exchange regarding their supervisory and regulatory responsibilities.
?In view of the increasingly dynamic and challenging marketplace, international coordination in the area of supervision and surveillance is important, particularly in the current tide of financial turmoil,? said Clement Cheung, commissioner of insurance for the Insurance Authority of Hong Kong.
Cheung added the agreement could help both the Hong Kong and German insurance sectors to address common regulatory issues that arise in evolving insurance markets.
BaFin?s chief executive director of insurance and pension funds supervision, Thomas Steffen, said the agreement between regulators will ?help either party to obtain valuable information on the financial situation of a person or entity and assess it more quickly. It is also a tool for ?day-to-day supervision as well as in a special situation between the two parties."
BaFin, the federal financial supervisory authority in Germany, supervises banks, financial services institutions and insurance undertakings, as well as pension funds, investment funds and investment companies.
Under the German Insurance Supervision Act, BaFin administers the supervision of insurance undertakings operating in Germany, which are of material economic significance, as well as pension funds and domestic companies engaging in reinsurance business. The scope of supervision includes all aspects of prudent supervision and good business conduct.
Established in 2002, BaFin has continued the work of the Federal Insurance Supervisory Authority which started operations in 1901.
(By Rebecca Ng, Hong Kong news editor: Rebecca.Ng@ambest.com)
Copyright ? 2009 A.M. Best Company, Inc.
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