Syllabus Section: Economy
Why in News?
The International Financial Services Centres Authority (IFSCA) obtained membership of International Association of Insurance Supervisors (IAIS).
• It is a voluntary membership organization of insurance supervisors and regulators from more than 200 jurisdictions, constituting 97% of the world's insurance premiums.
• It is the international standard-setting body responsible for developing and assisting in the implementation of principles, standards and other supporting material for the supervision of the insurance sector.
• In recognition of its collective expertise, the IAIS is routinely called upon by the G20 leaders and other international standard setting bodies.
• Established in 1994, the IAIS headquartered in Switzerlandis.
Significance of the Membership
• IFSCA would have access to IAIS’s global network and would be able to exchange ideas and information with other global regulators.
• This would help in developing a vibrant global Insurance hub in IFSC at GIFT City.
• Currently, 17 leading Insurance entities are operating from GIFT.
• This membership would go a long way in connecting IFSC with global insurance institutions and would facilitate IFSCA in joint development of global insurance business with other global centres.
• The central government has established International Financial Services Centres Authority to regulate all financial services in International Financial Services Centres (IFSCs)
• Headquarters in Gandhinagar (Gujarat)
• The IFSCA will consist of nine members, appointed by the central government.
Include Chairperson, a member each from the RBI, SEBI, the Insurance Regulatory and Development Authority of India (IRDAI), and the Pension Fund Regulatory and Development Authority (PFRDA)
Two members from the Ministry of Finance.
Two other members will be appointed on the recommendation of a Selection Committee.
Term: All members of the IFSC Authority will have a term of three years, subject to reappointment.
• The authority will regulate financial products such as securities, deposits or contracts of insurance, financial services, and financial institutions which have been previously approved by any appropriate regulator such as Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI) etc., in an IFSC.