MAS issues four-year prohibition orders against former Great Eastern representative

The prohibition orders against Ms Chan Seet Fun, which came into effect on July 24, 2018, were issued by MAS under section 35V of the Insurance Act and section 59 of the Financial Advisers Act.
The prohibition orders against Ms Chan Seet Fun, which came into effect on July 24, 2018, were issued by MAS under section 35V of the Insurance Act and section 59 of the Financial Advisers Act.PHOTO: REUTERS

SINGAPORE - The Monetary Authority of Singapore (MAS) has issued four-year prohibition orders against a former representative of The Great Eastern Life Assurance Company Limited (GE).

The orders prohibit Ms Chan Seet Fun from providing any financial advisory service and taking part in the management, acting as a director, or becoming a substantial shareholder of any financial advisory firm, the MAS said in a statement on Tuesday (July 24).

Ms Chan is also prohibited from carrying on business as, or taking part in the management of, any insurance intermediary.

While she was a GE representative, Ms Chan misappropriated $12,900 between August 2003 and December 2003 meant to pay for a client's premiums and interest charges.

She instead used the money to settle personal debts.

After finding out about outstanding charges in 2015, the client filed a complaint with GE in 2016. The firm subsequently conducted investigations and made a police report.

Ms Chan was convicted and fined $6,000 for criminal breach of trust on Nov 29, 2017, under section 406 of the Penal Code.

The prohibition orders against Ms Chan, which came into effect on Tuesday, were issued by MAS under section 35V of the Insurance Act and section 59 of the Financial Advisers Act.

Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets) at MAS, said that the financial advisory industry must be "built on a bedrock of trust", with representatives acting in the best interest of their clients.

"Where warranted, MAS will not hesitate to bar from the industry representatives who betray the trust of their clients," he added.

Under section 406 of the Penal Code, those who are found guilty of criminal breach of trust can be fined, or imprisoned for up to three years, or both.