SINGAPORE – Four former representatives from insurers Aviva and AXA, and one other person, have been banned by the Monetary Authority of Singapore (MAS) for several years over the illegal recruitment of unlicensed individuals to perform financial advisory services.
The five were barred from providing any financial advisory services and from taking part in management, acting as a director, or becoming a substantial shareholder of any financial advisory firm.
Mr Kelvin Tan Yaosheng and Mr Victor Wu Zhao Heng, both former Aviva representatives, received three-year bans that took effect on June 22, 2023, said MAS on Thursday.
Additionally, Mr Tan and Mr Wu were banned from carrying on business as an insurance intermediary and from taking part in the management of any insurance intermediary.
Former AXA representative Jeremy Tan Hongxiang and Ms Tong Hui Zhi were banned for five years, while former AXA representative Phua Shu Rong received a four-year ban. These took effect on Wednesday.
MAS said its investigations found that Ms Tong, who was neither an appointed representative nor authorised to provide financial advisory services, had sold 13 insurance policies to four customers.
Ms Tong’s sales were processed by Ms Phua and her supervisor Jeremy Tan.
Ms Phua informed AXA that she had made the sales, and these were reviewed by Mr Jeremy Tan.
Ms Phua then transferred the commissions for the policies sold to Mr Jeremy Tan and Ms Tong.
MAS said: “In this manner, Mr Jeremy Tan, Ms Tong and Ms Phua had deceived the four policyholders into thinking that they were advised by a licensed representative of AXA when they were not.”
AXA was also misled into believing that the policies were sold by Ms Phua when the policies were sold by Ms Tong, MAS added.
Separately, Mr Kelvin Tan and Mr Wu had recruited an individual who was not an appointed representative to provide financial advisory services, MAS said.
Mr Kelvin Tan gave his personal Aviva-issued iPad and login credentials to the person to document client information and submit policy proposals to Aviva in his name.
Mr Wu, who was Mr Kelvin Tan’s supervisor, provided guidance and updates regarding the clients’ policy documentation, as well as the status of the policies to the person, despite being aware of the unlawful arrangement.
Ms Loo Siew Yee, assistant managing director for policy, payments and financial crime at MAS, said the authority’s licensing requirements for financial advisory representatives are put in place to protect the public.
She added: “These requirements aim to ensure that such services are provided only 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.”
