The Monetary Authority of Singapore (MAS) has issued prohibition orders (POs) against five individuals for engaging in unlawful sub-agency activities. The activities involved appointed representatives making arrangements with unlicensed individuals to perform financial advisory services on their behalf.
Of the five, four of them were former representatives with AXA Insurance and Aviva Financial Advisers.
Tong Hui Zhi, who was neither an appointed representative nor authorised to provide financial advisory services, was found to have sold 13 insurance policies to four customers. Her sales were processed by former AXA representatives, Tan Hongxiang Jeremy and Phua Shu Rong. Phua informed AXA that she had made the sales and Jeremy Tan was her supervisor.
Phua then transferred the commissions for the policies sold to Jeremy Tan and eventually to Tong.
“In this manner, Jeremy Tan, Tong and Phua had deceived the four policyholders into thinking that they were advised by a licensed representative of AXA when they were not. Further, AXA was also misled into believing that the policies were sold by Phua when the policies were sold by Tong,” says the MAS.
Jeremy Tan and Tong received five-year POs while Phua was given a four-year PO. All the POs were effective from Oct 18.
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Separately, Tan Yaosheng Kelvin and Wu Zhao Heng Victor were issued three-year POs after both representatives, formerly from Aviva Financial Advisers, recruited an individual who was not an appointed representative to provide financial advisory services.
Kelvin Tan was said to have given his personal AFA-issued iPad and log-in credentials to the individual, to document client information, and to submit policy proposals to AFA in his name.
Wu, who was Kelvin Tan’s supervisor, provided guidance and, or updates regarding the clients’ policy documentation as well as the status of the policies, to the individual, despite being aware of the unlawful arrangement.
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Kelvin Tan and Wu’s POs took effect from June 22.
“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,” says Loo Siew Yee, assistant managing director (policy, payments and financial crime) at MAS.
