RETURN, INSPECTION, INVESTIGATION
AND WINDING UP
AND WINDING UP
—(1) A registered insurance broker shall prepare such statements of accounts and other statements and in such form and manner as may be prescribed and lodge them with the Authority.
(2) A registered insurance broker shall cause —
to be kept in Singapore such books and records as will sufficiently explain the transactions and financial position of the insurance broker in Singapore and enable the insurance broker to comply with the requirements of this section; and
those books and records to be kept in such manner as to enable them to be conveniently and properly audited.
(3) A registered insurance broker shall have its accounts audited for each accounting period for which statements of accounts and other statements are prepared in accordance with regulations prescribed under subsection (1).
(4) No person shall act as an auditor for any registered insurance broker unless —
he has a place of business in Singapore;
he has the approval of the Authority.
(5) An auditor shall not be approved by the Authority as an auditor for registered insurance brokers unless he is able to comply with such conditions in relation to the discharge of his duties as may be determined by the Authority.
(6) The Authority may impose all or any of the following duties on an auditor:
a duty to submit such additional information in relation to his audit as the Authority considers necessary;
a duty to enlarge or extend the scope of his audit of the business and affairs of the registered insurance broker;
a duty to carry out any other examination or establish any procedure in any particular case; and
(7) The registered insurance broker shall remunerate the auditor in respect of the discharge by him of all or any of the duties referred to in subsection (6).
(8) An auditor’s report made under subsection (6)(d) shall be lodged with the Authority together with the statements of accounts and other statements lodged by the registered insurance broker under subsection (1).
(9) If an auditor, in the course of the performance of his duties as an auditor of a registered insurance broker, is satisfied that —
there has been a serious breach or non-observance of any provision of this Act or that a criminal offence involving fraud or dishonesty has been committed;
serious irregularities have occurred, including irregularities that jeopardise the interests of policy owners; or
the insurance broker is unable to meet its obligations,
he shall immediately report the matter to the Authority.
—(1) If it appears to the Authority that any document lodged in accordance with section 28 is in any particular unsatisfactory, incomplete, inaccurate or misleading or that it does not comply with the requirements of this Act, the Authority may, by notice in writing, require such explanations as it may consider necessary to be made by or on behalf of the registered insurance broker within such time (not being less than 14 days) as is specified in the notice.
(2) The Authority may, after considering the explanations referred to in subsection (1), or if such explanations have not been given by or on behalf of the registered insurance broker within the time specified in that subsection, reject the document or give such directions as it may think necessary for its variation within such time (not being less than one month) as is specified in the directions.
(3) Directions given under subsection (2) with respect to any document may require such consequential variations of any other document lodged by the registered insurance broker under section 28 as may be specified in the directions.
(4) Where directions are given under subsection (2), any document to which the directions relate shall be deemed not to have been lodged until the document is re-submitted with the variations required by the directions.
(5) A registered insurance broker shall be deemed to have submitted the document within the time limited by regulations prescribed under section 28(1) if it is re-submitted with the required variations within the time limited by the directions.
—(1) The Authority may, for the purpose of performing its functions under this Act —
inspect the books, accounts, records and other documents of any insurance intermediary;
institute an investigation into the whole or any part of the business carried on in Singapore by the insurance intermediary; and
enter any premises of the insurance intermediary at all reasonable times.
(2) In making an inspection or investigation under this section, the Authority may, by notice in writing, require —
the insurance intermediary, or any person having the custody thereof on behalf of the insurance intermediary;
any person who is or has at any time been or acted as a director, an auditor, an officer or a servant of the insurance intermediary; or
any past or present member of the insurance intermediary,
to produce for its inspection, and allow it to copy the whole or any part of any book, account, record or other document of the insurance intermediary, whether kept in Singapore or elsewhere.
(3) Any person who contravenes or fails to comply with subsection (2) to produce any book, account, record or other document in his custody shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day or part thereof during which the offence continues after conviction.
—(1) The Authority may, by order, prohibit any person from carrying on business as an insurance intermediary or from taking part, directly or indirectly, in the management of any insurance intermediary where the person has been convicted of an offence involving fraud, dishonesty or moral turpitude or the Authority is satisfied that the person has —
forged policyholders’ signatures;
misappropriated policyholders’ premiums;
contravened any provision of the Insurance Act (Cap. 142) or this Act or any regulations made under those Acts;
given false, misleading or inaccurate information in its application to the insurer;
wilfully misled any policyholder when assisting him to fill up the proposal form;
used dishonest means to meet the requirements set up by the insurer; or
been involved in any activity prejudicial to the public interest.
(2) No registered insurer shall deal with any person who has been issued an order under subsection (1) as an insurance intermediary.
(3) Any person who fails to comply with an order of the Authority made under subsection (1) or who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day or part thereof during which the offence continues after conviction.
—(1) Where the Authority is satisfied that the affairs of any insurance intermediary are being conducted in a manner likely to be detrimental to the public interest or the interest of the policy owners or prejudicial to the interest of the insurance intermediary, the Authority may issue such directions to the insurance intermediary as it may consider necessary and, in particular, may require the insurance intermediary —
to take such action or recruit such management personnel as may be necessary to enable it to conduct its business in accordance with sound insurance principles;
to remove any of its directors or any person whom the Authority considers unfit to be associated with it;
to take action as to the disposition or recovery of its assets;
to take any available steps for the recovery by the insurance intermediary of sums appearing to the Authority to have been illegally or improperly paid; or
(2) The Authority may, upon representation being made to it, or on its own motion, modify or cancel any direction issued under subsection (1) and, in so doing, may impose such conditions as it may think fit.
(3) Any insurance intermediary who fails to comply with any direction made under subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 or to imprisonment for a term not exceeding 6 months or to both and, in the case of a continuing offence, to a further fine not exceeding $1,000 for every day or part thereof during which the offence continues after conviction.
—(1) The persons who may petition under the Companies Act (Cap. 50) for the winding up of the affairs of a registered insurance broker or for the continuance of the winding up of the affairs of a registered insurance broker subject to the supervision of the court shall include the Authority.
(2) The Authority may, in accordance with the provisions of the Companies Act, present a petition for the winding up of a registered insurance broker if the registered insurance broker has contravened or failed to comply with any provision of this Act.
(3) The Authority shall be a party to any proceedings under the Companies Act relating to the winding up of the affairs of a registered insurance broker.
(4) The liquidator in such a winding up shall give such information as the Authority may, from time to time, require about the affairs of the registered insurance broker.