The Financial Regulatory Authority (FRA) has set rules governing trainees in the field of insurance broking, said Mr Reda Abdel Moaty, economic adviser and FRA deputy chairman. The rules took effect last month.
The FRA is also laying down procedures for insurance brokers to register trainees, whether new or existing, with the Registry of Insurance Intermediaries, reported Aleqtisady.
Mr Moaty said the guidelines cover as well the contractual relationship between insurance brokers with trainees. For instance, the contract should stipulate the rights and obligations of the parties according to the law, as well as acts which trainees are prohibited from undertaking such as issuing insurance policies, offering insurance services or attempting to know the views of customers thereon, or to determine the level of insurance services required, and providing quotations or commitments to any discounts.
The rules also stipulate that the broking firm should draw up a training programme, with theoretical and practical modules, for a trainee, according to a clear time frame and methodology, and a clear definition of the criteria for granting rewards during the training period.
Insurers have to submit to the FRA a list of new and current trainees, their personal data and quarterly or monthly assessments of the trainees, as well as the number of vacant or required positions in the company’s sales department at the beginning of each financial year.
IFE to draft code of conduct for members
Separately, the Insurance Federation of Egypt (IFE) is preparing a code of professional conduct for member insurance companies – a serious step towards strengthening governance in the market.
To this end, the IFE has formed a committee that will develop governance guidelines and standardise concepts in the application of accounting standards, reported Al Mal News.
The code of professional conduct represents the minimum standards for corporate governance, said the IFE. It defines an insurer’s responsibilities to stakeholders and obliges management to comply with certain guidelines when exercising their authority both within and outside the company. Stakeholders are all parties who participate in the company’s operations.
The proposed code covers the appropriate identification of responsibilities, internal and external oversight, as well as the need to adhere to principles of transparency, disclosure and accountability. M