[Hong Kong Insurance Authority Responds to Cross-Border Insurance Purchases: Continues to Crack Down on Market Misconduct, Maintains Communication with Mainland Authorities] According to a report by Yicai, in response to the compliance issues surrounding mainland residents purchasing Hong Kong insurance policies, the Hong Kong Insurance Authority (IA) stated today that it has maintained close communication with relevant mainland authorities on regulatory topics, including the illegal cross-border sale of insurance products. Under current regulations, the entire sales process for Hong Kong life insurance must take place within Hong Kong, and licensed insurance intermediaries in Hong Kong are prohibited from soliciting insurance business in the mainland. Principals (i.e., insurance companies, insurance brokerage firms, or insurance agencies) are responsible for establishing and implementing effective internal control procedures to ensure that intermediaries conduct regulated activities in a lawful and compliant manner.