Separate reporting and disclosure apply to contracts falling outside the defined scope of an insurance contract. Such non-insurance contracts require distinct presentation and disclosure in financial statement reporting, with classification depending on whether the contract satisfies the prescribed insurance contract definition.

Every International Financial Service Centre Insurance Office (IIO) must disclose all related party transactions in its audited financial statements. The requirement forms part of the framework for preparation and presentation of IIO financial statements under the International Financial Services Centres Authority Regulations, 2022, applying to all related party transactions of the IIO for financial reporting purposes.

An incorporated International Financial Service Centre Insurance Office must submit its Annual Report to the Authority within ninety days after the end of each financial year. Required contents include reports on the board, management discussion and analysis, risk management and corporate governance, together with audited financial statements, Notes to Accounts, and certified external auditor and actuarial reports.

Financial reporting by an International Financial Service Centre Insurance Office to the Authority must be in United States dollars. USD is the default currency for all such reporting, unless the Authority specifies otherwise. A different reporting currency may apply only where the Authority gives a contrary specification.

Under the financial-statement preparation and presentation framework for International Financial Service Centre Insurance Offices, an IIO must disclose every adopted change in an accounting standard or accounting policy. The financial statements must specify the resulting financial impact under each relevant head, separately identifying the head-wise effect of each adopted change.

Financial statements prepared and presented by IIOs must include a detailed statement of accounting policies applied to each aspect of those financial statements. Accounting-policy information is therefore an integral part of financial-statement preparation and presentation, requiring detailed identification of policies applied across every relevant aspect for inclusion in the statements.

International Financial Service Centre Insurance Offices must clearly disclose the Accounting Standards followed in preparing and presenting their financial statements. The obligation concerns identification of the Accounting Standards actually followed and requires disclosure of the accounting basis used for those statements.

Financial statement presentation by IIOs must follow the form and manner specified by the Authority. Financial statements must additionally contain comparative information for the preceding accounting year, governing the prescribed format of presentation and year-on-year comparative disclosure in IIO financial reporting.

Incorporated International Financial Service Centre Insurance Offices must prepare financial statements under business-specific accounting, disclosure and related requirements. Life insurance business is governed by Schedule A, while general insurance and reinsurance business are governed by Schedule B. The applicable financial reporting framework depends on the nature of insurance business undertaken.

Unincorporated International Financial Service Centre Insurance Offices must prepare financial statements under accounting standards applicable to their parent entity. Incorporated offices must follow accounting standards issued by the Institute of Chartered Accountants of India, with cash flow statements prepared only through the Direct Method, segment reporting under Accounting Standard 17 irrespective of listing or turnover conditions, and no application of Accounting Standard 13 on investments. The Authority may require transition to IFRS or another accounting standard.

An accounting year for an unincorporated Insurance Office follows its parent entity's financial year, while an incorporated Insurance Office follows a period ending on 31 March each year. The Policyholders' Fund includes estimated outstanding-claim liabilities, insurance reserves, other liabilities, and other assets on a net basis. Shareholders' Funds comprise share capital, reserves and surplus after specified exclusions and deductions; an unincorporated Insurance Office uses assigned capital instead of share capital.

Regulation 3 sets the objective of the International Financial Services Centres Authority framework for International Financial Service Centre Insurance Offices: establishing a process for the preparation and presentation of their financial statements. The framework concerns the manner in which IIO financial statements are to be prepared and presented, applying specifically to those offices within the International Financial Service Centre.

Applicability of the financial-statement preparation and presentation framework is confined to International Financial Service Centre Insurance Offices registered with the Authority under the International Financial Services Centres Authority (Registration of Insurance Business) Regulations, 2021. Registration under that insurance-business framework is the specified condition for such offices to fall within the regulatory scope.

International Financial Services Centres Authority (Preparation and Presentation of Financial Statements of International Financial Service Centre Insurance Offices) Regulations, 2022 establish the title and commencement framework for financial-statement requirements applicable to International Financial Service Centre insurance offices. Made under the International Financial Services Centres Authority Act, 2019 and the Insurance Act, 1938, they take effect upon Official Gazette publication.

Fit and proper eligibility requires fairness and integrity, including financial integrity, good reputation and character, and honesty. Disqualifications include relevant criminal convictions, pending recovery proceedings, winding-up for malfeasance, undischarged insolvency, unsoundness of mind, financial unsoundness, wilful-defaulter categorisation, and fugitive economic offender status. Regulatory restraints concerning financial products or services, and other regulatory orders, preclude eligibility for prescribed three-year periods.

Eligible jurisdictions for electronic trading platforms include Singapore, India, the United States of America, the United Kingdom, the European Union and the Dubai International Financial Centre. Eligibility depends on holding the prescribed local status, including recognition as a market operator, ETP Operator status, alternative trading system approval, Multilateral Trading Facility authorisation, or Authorised Market Institution status.

Implementation and regulatory facilitation of Electronic Trading Platforms may be supported by the Authority through subsidiary instructions and clarifications. The Authority may prescribe norms, procedures, processes, methods, additional requirements and guidelines, or grant relaxations, for implementing the regulatory framework and facilitating and regulating Electronic Trading Platform activities.

Regulation 27 permits relaxation of strict enforcement of requirements governing electronic trading platforms where it serves development of the financial services market in the International Financial Services Centre. Reasons for relaxation must be recorded in writing. An applicant must submit details and grounds for the requested relaxation and pay a prescribed non-refundable filing fee.

The Authority may issue directions through subsidiary instructions to resolve difficulties in interpreting or applying provisions governing electronic trading platforms. The power facilitates clarification and practical implementation of regulatory requirements.

The Authority may recover from an Electronic Trading Platform Operator expenses incurred in inspecting or investigating its books of account, records, documents, infrastructure, systems or procedures. Recoverable expenses include fees paid to auditors for conducting those inspection or investigation activities.