The Monetary Authority of Singapore (MAS) has reprimanded AIA Financial Advisers (AIA FA), Prudential Assurance Company Singapore (Prudential), Aviva (Aviva) and Aviva Financial Advisers (Aviva FA) for breaches of requirements relating to risk management arrangements and the remuneration of supervisors.
MAS also reprimanded Peter Tan Shou Yi, a consultant engaged by Aviva, for accepting remuneration in breach of regulatory requirements, and Aviva FA CEO and director Chee Boon Chai Lionel, for his failure to discharge the duties of his office.
According to MAS’s investigations, there were numerous instances where remuneration was paid to supervisors in contravention of requirements under the Financial Advisers Act (FAA). These related to the Balanced Scorecard requirements (BSC) for the sale of investment products, and the Spreading and Capping of Commissions requirements (SCC) for the sale of regular premium life policies.
In a statement, MAS deputy managing director (Financial Supervision) Ho Hern Shin said, “MAS expects financial institutions to have robust arrangements to ensure that their representatives place their customers’ interests first.
“Our requirements on remuneration practices relating to the sale of investment and life insurance products aim to promote good sales conduct in the financial advisory industry. We have dealt firmly with these financial institutions and individuals who have breached our regulations, to send a clear message to the industry on the importance of upholding high ethical standards.”
Further details for each case can be found here.