Insurance Authority bans To Kong until 14 July 2024
8 March 2022
The Insurance Authority (“IA”) has taken disciplinary action against former technical representative (broker) Mr To Kong, prohibiting him from applying to be licensed until 14 July 2024, on grounds of him not being fit and proper1.
The disciplinary action arose from a decision by the Mandatory Provident Fund Schemes Authority (“MPFA”) to suspend Mr To’s registration for 40 months for contravening the conduct requirements under the Mandatory Provident Fund Schemes Ordinance (Cap. 485) (“MPFSO”). The MPFA found that Mr To had made transfers without a scheme member’s authorization, misused the scheme member’s personal information, forged the member’s signature on certain forms, and impersonated the scheme member in calling a Mandatory Provident Fund trustee to obtain account information.
Section 64ZZA(1) of the Insurance Ordinance (Cap. 41) (the “Ordinance”) outlines the criteria that the IA must take into account in determining whether a person is fit and proper to be or to remain a licensed insurance intermediary. These criteria include, among other matters, the person’s ability to carry on a regulated activity competently, honestly and fairly, the reputation and integrity of the person, and any disciplinary action taken against the person by, inter alia, the MPFA.
The conduct of Mr To which gave rise to the MPFA’s decision involved his handling of client information, completion and submission of forms, and carrying on telephone calls with a financial services provider, being the same type of activities that a licensed insurance intermediary undertakes when carrying on regulated activities under the Ordinance. As such, the lack of integrity he demonstrated in his conduct as a subsidiary intermediary under the MPFSO also renders him not fit and proper to serve as a licensed insurance intermediary under the Ordinance, hence the prohibition.
Policy holders and potential policy holders must be able to trust the licensed insurance intermediaries on whom they rely for their insurance services. For this reason, licensed insurance intermediaries must be persons of integrity. Conduct which displays a lack of integrity, particularly where the conduct involves actions similar to those which a licensed insurance intermediary carries on when serving policy holders or potential policy holders, may render the person no longer fit and proper to be licensed. In these circumstances, the IA will have no hesitation in taking disciplinary action to ensure policy holders and potential policy holders are protected and the reputation of the insurance industry is maintained.
Ends
Note:
1 As defined under section 81(1) of the Insurance Ordinance (Cap. 41).