Application of this Division
s 40
40. This Division applies to licensed financial advisers who provide any financial advisory service in respect of life policies.[31 [1/2009]
Financial Advisers Act 2001 Division 2 — Life Insurance
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗
Insurance broking premium accounts
s 41
41.—(1) Every licensed financial adviser which receives any money —(a) from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or a proposed contract of insurance; or (b) from or on behalf of an insurer for or on account of an insured or intending insured, must, for the purposes of this section, establish and maintain a separate account with a bank licensed under the Banking Act 1970. [15/2003] (2) The Authority may prescribe, in relation to an account established under subsection (1) —(a) the types of moneys that must be paid into or withdrawn from such account; (b) the manner in which moneys should be paid into or withdrawn from such account; (c) the manner in which moneys held in such account are to be invested; (d) the manner in which the proceeds from the investment of moneys held in such account are to be distributed; (e) the rights and obligations of any party in relation to moneys held in such account; and (f) any other matter which the Authority considers to be incidental to or necessary for this section. (3) A lien or claim on the moneys in any account established by any licensed financial adviser under subsection (1) is void unless the moneys in the account are for fees due and owing to the licensed financial adviser. (4) A charge or mortgage on the moneys in any account established by any licensed financial adviser under subsection (1) is void. (5) In this section, “moneys” means any sum received by a licensed financial adviser as agent for an insured or intending insured, including policy moneys, premiums and claims payments. (6) Any licensed financial adviser who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.[32
Negotiation and placement of risk with unlicensed insurer
s 42
42.—(1) Subject to subsection (4), a licensed financial adviser must not, in the course of the licensed financial adviser’s business as such, negotiate any contract of insurance with an insurer (directly or indirectly) except with a licensed insurer acting in the course of his business as such.[1/2009; 11/2013] (2) The reference in subsection (1) to a contract of insurance does not apply to —(a) reinsurance; (b) business relating to risks outside Singapore; or (c) such other risks as may be prescribed. (3) In subsection (2)(b), “risks outside Singapore” means any risk which would be classified as an offshore policy as defined in the First Schedule to the Insurance Act 1966 had the risk been underwritten by a licensed insurer in Singapore.[11/2013] (4) Where in any particular case the Authority is satisfied that, by reason of the exceptional nature of the risk or other exceptional circumstances, it is not reasonably practicable to comply with subsection (1), the Authority may permit any licensed financial adviser —(a) to negotiate the contract of insurance with such insurer as the licensed financial adviser sees fit; and (b) if in the opinion of the Authority the case requires it, to effect the contract of insurance and receive the premium in Singapore on behalf of such insurer.[1/2009] (5) Any person who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 3 years or to both.[33
Representations by licensed financial advisers
s 43
43.—(1) A licensed financial adviser must not, with intent to deceive, in relation to a proposed contract of insurance —(a) write on a form, being a form that is given or sent to an insurer, any matter that is material to the contract and is false or misleading in a material particular; (b) omit to disclose to the insurer any matter that is material to the proposed contract; (c) advise or induce the intending insured to write on a form, being a form that is given or sent to the insurer, any matter that is false or misleading in a material particular; or (d) advise or induce the intending insured to omit to disclose to the insurer any matter that is material to the proposed contract.[1/2009] (2) A licensed financial adviser must not, with intent to deceive, in relation to a claim under a contract of insurance —(a) fill up, in whole or in part, a form, being a form that is given or sent to an insurer, in such a way that the form is false or misleading in a material particular; (b) omit to disclose to the insurer any matter that is material to the claim; (c) induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or (d) advise or induce the insured to omit to disclose to the insurer any matter that is material to the claim.[1/2009] (3) Any licensed financial adviser who contravenes this section shall, even if a contract of insurance does not come into being, be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 or to imprisonment for a term not exceeding 12 months or to both.[34 [1/2009]
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