The Insurance Authority (IA) has taken its first disciplinary actions against two licensed insurance broker companies for failure to submit their audited financial statements and auditor’s reports within required timeframes. One of the broker companies has had its licence suspended, and both companies have been fined. The enforcement actions are the first of its kind since the IA took over the direct regulation of insurance intermediaries on 23 September 2019 (click here to read our previous blog).
While the contraventions of the two broker companies relate to periods prior to 23 September 2019, the transitional arrangements under the Insurance Ordinance empower the IA to handle non-compliance cases unresolved by the previous self-regulatory organizations and to impose disciplinary sanctions where appropriate.
The IA has reiterated the importance of filing financial reports on time as contraventions may be prosecuted as an offence and adversely impact the fitness and properness of the broker to remain licensed.
A copy of the press release can be accessed here.