Insurance regulator IRDA has set up a nine-member committee to review the 14 non-legislative recommendations made by the Financial Sector Legislative Reforms Commission (FSLRC). The committee will also examine the extant legislative and regulatory framework in compliance 14 non-legislative recommendations (NLRs), IRDA said in an order.
The non-legislative recommendations are related with consumer protection, transparency and capacity building, among others. The Insurance Regulatory and Development Authority (IRDA) said the committee will submit its report by April-end.
The committee members include C R Muralidharan, G Prabhakara, and Mathew Varghese, all ex-Members, IRDA and M S Sahoo, ex-Member, SEBI. The committee will identify the gaps and possible improvements in the extant framework vis-a-vis the 14 NLR.
The panel will also suggest changes or modifications to the extant framework in compliance with the 14 NLR. While not much progress has been made towards implementing the recommendations made in FSLRC report, which was submitted to the government in March last year, the Finance Ministry has called for early implementation of the non-legislative proposals contained therein.
The finance ministry recently asked regulators to voluntarily implement the non-legislative recommendations of FSLRC, while issuing a ‘guidance handbook’ on this matter.
According to the guidance handbook, there are a number of recommendations in the FSLRC report which are in the nature of governance enhancing and do not require legislative changes. The implementation of the NLR made by the FSLRC was discussed by the Financial Stability Development Council (FSDC).
In its report, the FSLRC has recommended sweeping changes to the way financial sector is regulated in the country, including in areas ranging from banking and insurance to capital markets, among others.
Source: The Economic Times
Date: 3rd February 2014