Enforcement Action taken against former representative of insurance broker for dishonest conduct

POSTED ON: Tuesday 23 Mar 2021 BY: rhtgoc

The Monetary Authority of Singapore (MAS) issued a four-year prohibition orders (POs) against Mr Lau Man Chun, a former representative of an insurance broker, for dishonest conduct relating to the sale of personal accident (PA) policies that took effect from 22 February 2021.

 

Mr Lau was a representative of Financial Alliance Pte Ltd (FAPL) between November 2014 to March 2018. FAPL is an insurance broker which distributes PA policies of Liberty Insurance Pte Ltd (Liberty) on an exclusive basis. Between April 2018 to July 2019, Mr Lau was with Manulife Financial Advisers Pte Ltd (Manulife) and was authorised only to advise and sell life policies.

 

In December 2018, Mr Lau met three persons and sold Liberty’s PA policies despite not being authorised to advise on or sell general insurance policies. He obtained their signatures on blank policy proposal forms and collected $100 cash from each person to pay the policy premiums. In January 2019, Mr Lau sent falsified policy schedules to the clients when they requested an update of their policy status to give them the wrong impression that their policies had already been effected. The impact of Mr Lau’s actions on these persons was significant as they would not have succeeded in making a claim if the need arose.

Mr Lau is prohibited from providing any financial advisory service or taking part in the management of, acting as a director of, or becoming a substantial shareholder of any financial advisory firm. He is also prohibited in carrying on business as, or taking part in the management of, any insurance intermediary.

 

For a full copy of the enforcement action, please click here.

 

 

Conclusion
Financial Institutions (FIs) should ensure that all their appointed representatives and broking staff only conduct authorised regulated activities. FIs should confirm that individuals meet the MAS minimum entry and examination requirements before any appointment and assess their fitness and propriety.

 

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