The Capital Market Authority’s Board of Directors has issued instructions No. (2) of 2022 regarding the licensing of electronic platforms for the sale or provision of aggregation and comparison services for non-banking financial services.
The issuance of these instructions for licensing electronic platforms for selling non-banking financial services in the insurance, leasing, and securities sectors, as well as providing aggregation and comparison services for non-banking financial products, is in line with the PCMA’s strategy for the years 2021-2025. This strategy is part of a program to promote the use of financial technology in non-banking financial sectors and provide a conducive environment for them.
The instructions aim to develop the regulatory environment to create new electronic distribution channels based on financial technology through electronic platforms that provide electronic financial product or service sales to consumers electronically. Additionally, they aim to provide a service for aggregating and comparing non-banking financial products and services issued by non-banking financial institutions contracted with, making it easier for citizens and consumers to choose and compare available financial products through the platform.
These instructions seek to license electronic platforms to create a supervisory and regulatory environment for carrying out the activities of electronic platforms in non-banking financial sectors subject to the PCMA’s supervision and oversight in Palestine. They enable the PCMA to oversee and regulate financial technology-based solutions and applications through electronic platforms, keep pace with the rapid technological changes imposed by digitization, establish controls for creating, operating, managing, and licensing these platforms, and serve the beneficiaries while ensuring their rights and information security.
It is worth noting that the authority issued Decision No. (1) of 2022 regarding technological controls and rules for securing and protecting information related to providing non-banking financial services through electronic platforms.
You can access the instructions by clicking here.