The Monetary Authority of Singapore (MAS) has imposed a two-year prohibition order against, Mr Lim Chew Keat, a former insurance agent of Synergy Financial Advisers Pte Ltd (Synergy FA) for making false and misleading statements to his clients. The prohibition order against the financial adviser was issued under section 59(1)(bc) read with section 23J(1)(h)(ii)(B), and section 59(c)(i) read with sections 26(1)(c)(ii) and 37(1) of the Financial Advisers Act.

Following MAS investigations, it was noted that the financial adviser had made various false and misleading statements about features of a regular premium investment-linked policy (IPL) to his client. The financial adviser had falsely notified a client that the issuer of the ILP would top-up an amount equivalent to the first annual premium of the ILP invested when, in fact, the ILP issuer would top up only half the amount invested. The financial adviser also falsely notified the client that she could stop paying premiums and withdraw premiums paid in full after two years when, in fact, the client was required to pay premiums for the whole policy term and would not be able to withdraw the premiums paid in full after two years.

Under section 26(1)(c)(ii) of the Financial Advisers Act, a licensed financial adviser, shall not make false or misleading statements in connection with the provision of financial advisory service, when he makes statements, he knows or ought reasonably to have known that the statement is false or misleading. Under section 59(1)(bc) of the Financial Advisers Act, MAS may make a prohibition order against a financial adviser if MAS has reason to believe that underlying circumstances exist to revoke his or her status as an appointed or provisional representative.

Please click here for more details on the prohibition order.


Pin It on Pinterest

Contact us
close slider
Contact us

Fill up the form below to get in touch with us!