MAS issues Prohibition Orders against Chan Seet Fun for misappropriation of client monies

Singapore, 24 July 2018… The Monetary Authority of Singapore (MAS) has issued 4-year prohibition orders against Ms Chan Seet Fun for the misappropriation of client monies.

2   The orders prohibit Ms Chan from providing any financial advisory service and taking part in the management, acting as a director, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act. Ms Chan is also prohibited from carrying on business as, and taking part in the management of, any insurance intermediary under the Insurance Act.

3   Mr Lee Boon Ngiap, Assistant Managing Director (Capital Markets), MAS, said: “The financial advisory industry must be built on a bedrock of trust and representatives must always act in the best interest of their clients. Where warranted, MAS will not hesitate to bar from the industry representatives who betray the trust of their clients.” 

Background of the case

4   Ms Chan was a former representative of The Great Eastern Life Assurance Company Limited (GE). Between August and December 2003, whilst a representative of GE, she misappropriated S$12,900 that were entrusted to her by a client as payment to GE for his premiums and interest charges. Ms Chan used the monies to repay her personal debts instead.

5   In 2015, the client was made aware of the premiums and interest charges he owed to GE. He filed a complaint with GE in 2016. GE subsequently conducted investigations and reported the matter to the Police.

6   On 29 November 2017, Ms Chan was convicted and fined $6,000 for criminal breach of trust under section 406 of the Penal Code (Cap. 224).

7   The prohibition orders against Ms Chan were issued by MAS pursuant to section 35V of the Insurance Act and section 59 of the Financial Advisers Act and took effect from 24 July 2018.

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Additional information

Section 406 of the Penal Code (Cap. 224, Rev Ed 1985)
Whoever commits criminal breach of trust shall be punished with imprisonment for a term which may extend to 3 years, or with fine, or with both.

Last Modified on 24/07/2018