IIQE Paper 6 study guide
IIQE Paper 6 · Work through your exam, one topic at a time.
IIQE Paper 6 - Regulation of Insurance Intermediaries - is the Hong Kong qualifying examination paper that tests the regulatory and ethical knowledge expected of individuals who wish to be licensed as insurance intermediaries, and of those already licensed who must keep that knowledge current. It is taken by prospective insurance brokers and agents, by responsible officers and technical representatives supporting them, and by compliance and back-office staff who need to understand the conduct rules that govern the sale of insurance products in Hong Kong. The IIQE Paper 6 study guide has 7 sections and about 3,484 words.
01Regulatory framework and the Insurance Authority
Paper 6 asks who regulates insurance intermediaries in Hong Kong, under what statutory powers, and where the boundary lies between the Insurance Authority (IA) and other bodies. Questions typically target the IA's statutory functions, its constitutional status, and the three pillars of its work.
514 words, about 3 min02Licensing of insurance intermediaries: brokers, agencies, responsible officers and fit and proper criteria
A person may not carry on a regulated activity - advising on, or arranging, a contract of insurance - unless licensed by the IA, is an authorized insurer, or is a bank acting as a registered institution. Introducing a client to an insurer for a fee, or "just passing the application along", is arranging and requires a licence.
532 words, about 3 min03Business conduct requirements: conduct of regulated activities, suitability, disclosure, remuneration and conflicts
The IA's conduct requirements for licensed intermediaries rest on a few principles tested by scenario questions: honesty and fairness, diligence, competence, know your client, disclosure, suitability, management of conflicts, responsible remuneration and proper records. The benchmark is what a reasonably prudent intermediary would do - not merely what the contract permits.
469 words, about 2 min04Sales process and advice: financial needs analysis, risk profiling, product presentation and record keeping
A defensible sale follows a sequence: fact-find and financial needs analysis (FNA); risk profiling where relevant; product selection and comparison; clear presentation of features, charges and risks; application and signatures; post-sale delivery with cooling-off rights; and a complete record. For long-term insurance, including investment-linked and retirement products, the FNA is mandatory.
480 words, about 2 min05Anti-money laundering and counter-terrorist financing: risk-based approach, CDD, monitoring and STRs
Hong Kong's AML/CTF regime for insurers and intermediaries rests on the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), the Drug Trafficking (Recovery of Proceeds) Ordinance, the Organized and Serious Crimes Ordinance and the United Nations (Anti-Terrorism Measures) Ordinance, together with the IA's AML/CTF guideline.
505 words, about 3 min06Complaints handling, disciplinary powers and enforcement: investigation, sanctions, appeals and the ICB
Every licensee needs a written complaints procedure: log the complaint, acknowledge it promptly (commonly within seven days), investigate independently of the salesperson involved, respond in writing with reasons, and offer escalation. Serious matters - forgery, misappropriation, systematic mis-selling - must be escalated to senior management, the insurer and, where required, the IA.
488 words, about 2 min07Professional ethics and integrity: honesty, fair dealing, confidentiality, competence and CPD
Ethics questions test whether you can recognise a conflict between commercial pressure and the client's interest, and whether you know the concrete rules - confidentiality, competence, CPD - that turn values into obligations. Honesty and integrity: no misrepresentation, no forged signatures, no backdating, no withholding adverse information.
496 words, about 2 min