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OUR MISSION
OUR OBJECTIVES
 
Supervision
Inspections and
Supervisory Reviews
New Legislation
Enhancing Regulatory Frameworks
Market and Business Conduct
Risk Management
B THE FINANCIAL SECTOR: KEY SUPERVISORY
AND REGULATORY INITIATIVES
 
  Market and Business Conduct 51
 
Enhancing Market Discipline  
51
 
Survey on Establishment and Maintenance of
 
the Insurance Broking Premium Account  
51
 
 
Box 11 – MoneySENSE  
52
 
Enhancing Consumer Recourse  
54
 
Financial Industry Disputes Resolution Centre Launched  
54
 
Box 12 – Investigating Across Borders  
55
 
  MARKET AND BUSINESS CONDUCT

Survey on Establishment and Maintenance of the
Insurance Broking Premium Account
 

The IA and FAA require insurance brokers and financial advisers who receive any money from or on behalf of policyholders and insurers in connection with an insurance policy to deposit such moneys into an Insurance Broking Premium Account (IBPA). The legislation also stipulates that no moneys may be withdrawn from the IBPA without the prior written approval of MAS except for the types of withdrawal specified in the legislation.

In the third quarter of 2005, MAS requested all insurance brokers and financial advisers to conduct a special review of the adequacy and effectiveness of their internal systems and controls to ascertain whether their IBPA moneys are handled, and their IBPA are maintained and managed, in full compliance with the relevant legislation. We also asked them to provide details of their internal systems and controls for the establishment and maintenance of the IBPA. A total of 61 insurance brokers and 41 financial advisers were covered in the survey.

Based on the survey, we found that most companies have generally put in place procedures and controls for the handling of the IBPA moneys. However, several companies failed to properly segregate the IBPA moneys handled for general insurance policies and life insurance policies in accordance with the IA and FAA requirements. MAS will be following up in relation to these instances of non-compliance.