(Preparation and Presentation of Financial Statements of International Financial Service)

International Financial Services Centres Authority (IFSCA or Authority) vide Circular ref. no. IFSCA/2022-23/GN/REG033, dated January 12, 2023 (published on January 16, 2023) has issued “IFSCA (Preparation and Presentation of Financial Statements of International Financial Service Centre Insurance Offices) Regulations, 2022” [“Regulations”] which shall be applicable from the date of its publication in the Official Gazette

Objective – To put in place the process of preparation and presentation of financial statements of the International Financial Service Centre Insurance Offices (IIO).

Major highlights of the Regulations are as follows:

• An IIOs set up in an unincorporated form shall prepare its financial statements in accordance with the accounting standards applicable to its parent entity
• The Regulations have prescribed Schedules A & Schedule- B for preparation of financial statements by IIOs set up in an incorporated form:
• Schedule A for IIOs carrying on Life insurance business
• Schedule B for IIOs carrying on General Insurance business or Reinsurance.
• The financial statements shall include comparative information in respect of the preceding accounting year
• An IIO shall clearly disclose the Accounting Standards which have been followed in the preparation and presentation of the financial statements.
• All financial reporting to the Authority shall be in USD, unless otherwise specified by the Authority.
• Disclosures of all related party transactions shall be made in the audited financial statements.
• An IIO shall maintain separate accounts of Shareholders fund and Policyholders fund as specified by the Authority.
• Investment allocated to the Policyholders shall not be less than the value of Policyholders fund.
• An IIO shall maintain and preserve the documents/ records specified in the regulations in electronic retrieval form for a minimum period of seven years or as per other applicable legal requirements, whichever is later.
• The Authority has the right to inspect or investigate the affairs of the IIO including calling for any information from the IIO or its Parent Entity, so far as it relates to its activities as an IIO.
• The IIO shall make disclosures, in such form and manner as may be specified by the Authority.
• An IIO operating in the IFSC prior to the commencement of these regulations, shall comply with additional requirements stipulated in these regulations, within a period of six (6) months from the date of commencement of these regulations.

Source category: IFSC Insurance Office

Attachments

• /2023/143_IFSCA(~14.PDF