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Regulatory Update

Financial adviser bill nixed in Maryland and China issues guidelines for asset-liability management for insurers.
  • May 2019
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Financial Adviser Conduct: A Maryland legislative committee has dealt a serious setback to a bill that would have raised investment advice standards on financial professionals.

The senate Finance Committee rejected the Financial Consumer Protection Act without opposition.

The bill would have imposed tough standards on fee-based financial advice, defining agents, brokers and dealers as fiduciaries required to act in their clients' best interests without regard to their own financial gain.

Asset Management: The China Banking and Insurance Regulatory Commission has issued guidelines for an asset-liability management reporting requirement for insurers.

The new rule aims to strengthen the quantitative evaluation of insurance companies' asset-liability management capability, said the CBIRC. Insurance companies have to submit quantitative evaluation reports, related supporting documents and other information for the regulator on a quarterly basis.

Last year, the CBIRC introduced new asset-management rules and tests for a trial period. The new rules aim to prevent asset-liability mismatches for stronger risk management and internal control. A quantitative test system would be introduced for the insurers to assess their asset-liability management and risk controls. Insurers have to conduct this test and submit the results to the regulator.


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