MAS IMPOSES COMPOSITION AMOUNT OF $10,000 ON TARGET INSURANCE BROKERS PTE LTD FOR FAILURE TO COMPLY WITH WRITTEN DIRECTIONS ISSUED

1 On 2 June 2010, Target Insurance Brokers Pte Ltd (“TIBPL”) paid a composition amount of S$10,000 for contravention of written directions issued under section 58 of the Financial Advisers Act (“FAA”).

2 The written directions issued by MAS on 15 October 2008 (“the Directions”) required TIBPL to ensure that supervisors of its financial advisers representatives maintain a log of all transactions (“Full Transaction Log”) by the representatives under their direct supervision. The Directions also required TIBPL to ensure that its compliance officer maintain a log of all switching transactions (“the Switching Log”) occurring within three months from the date of each client’s preceding transaction. The Directions set out the details to be documented and maintained in the Full Transaction Log and the Switching Log.

3 MAS noted from the records submitted by TIBPL for the period of 17 November 2008 to 28 November 2008 and for the month of April 2009 that TIBPL had failed to maintain the Full Transaction Log and the Switching Log as required by the Directions.

All insurance brokers exempted under section 23 of the FAA shall ensure full compliance with any written directions issued by MAS under section 58 of the FAA.

MAS expects insurance brokers to have in place effective policies and procedures to ensure compliance with all applicable laws and regulations, including directions issued by MAS.