MAS Withdraws Exemption of Three Insurance Brokers
Under the Financial Advisors Act (FAA), registered insurance brokers who conduct direct insurance broking business relating to general insurance under the Insurance Act are exempted from the requirement to hold a financial adviser’s licence when they provide financial advisory services.
Yesterday, MAS announced that they have withdrawn this exemption for three insurance brokers, namely:
- Acclaim Insurance Brokers Pte Ltd (AIB);
- Leadenhall Insurance Brokers Pte Ltd (LIB); and
- Magnetron Insurance & Financial Services Pte Ltd (MIFS)
Inspections conducted by MAS in 2008 have shown that these three companies have violated parts of the FAA. The management has been found wanting in their control procedures as well as monitoring of the conduct of their representatives and introducers.
MAS didn’t really spelt out the exact misdeeds that these three companies did. I suspect that one of the possible reasons could be churning. Churning is a subject that I had talked about in the past.
I would like to repeat my call again for individuals to be vigilant about their own investments and not be taken for a ride by anyone.
Update: Found some news written about Acclaim and Leadenhall about a year ago.