MAS bans 4 former insurance advisers for unlawful sub-agency activities

The ban includes one other individual, barring the five insurers for 3 to 5 years.

The Monetary Authority of Singapore (MAS) has prohibited four former advisers from insurers AXA and Aviva, and one other individual for unlawful sub-agency activities with unlicensed individuals for performing advisory services in place of them.

In a statement, MAS said the ban varies between 3 to 5 years, barring the individuals from any financial advisory service, including taking part in management-related activities, acting as directors on their firms, or serving as a shareholder of any financial advisory firm, as part of the Financial Advisers Act.

The investigation found that Tong Hui Zhi sold unauthorised insurance policies; Jeremy Tan Hongxiang and Phua Shu Rong processed Tong’s unsanctioned sales and its corresponding commissions; Tan, Tong and Phua deceived policyholders into believing the policy from AXA as authorised; and AXA was misinformed about the policies sold.

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Additionally, Tan and Wu were involved in a separate case for the recruitment of an individual not authorised to provide financial advisory services, as well as using AFA-issued paraphernalia and documentation.

“MAS’ licensing requirements for financial advisory representatives are put in place to protect members of the public. These requirements aim to ensure that such services are only provided by fit and proper and adequately qualified persons, who are subject to supervision by licensed firms. Unlawful sub-agency arrangements circumvent these requirements, and MAS will take firm action against individuals who engage in them,” Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime) of MAS, said.