Model Memorandum of Understanding
MoUs are designed to facilitate co-operation and the exchange of information between regulatory bodies. As such they are statements of intent which do not impose legally binding obligations on signatories or override domestic laws or regulations. Nor do they affect other channels of co-operation, such as arrangements which may exist covering mutual assistance in criminal matters. The strengths of MoU are seen to be in their ability to accommodate the differences between regulators, and in the flexibility they provide in responding to changing legal and regulatory environments.
Whilst the MoU may for some be a serviceable model on which to negotiate, there is no suggestion that IAIS members should be able to implement all the provisions in this document. It is for individual members - in the light of their own laws, regulations and requirements - to decide whether they wish to use the text in its entirety or in part in seeking to agree a MoU with another jurisdiction. Alternatively, IAIS members may simply wish to use the draft as an aide memoire as to some of the elements that an optimal MoU might include, and develop their own text reflecting the particular circumstances within their jurisdiction. One of the key aspects of a successful MoU is the opportunity it provides to develop the relationship between the Authorities concerned. With this in mind, supervisors are encouraged to have regular contacts or meetings with each other to exchange information on developments affecting individual insurers or other general insurance developments.