Enforcement Actions
Published Date: 05 May 2021

MAS bans Lim Chew Keat for making false and misleading statements

 

Singapore, 5 May 2021… The Monetary Authority of Singapore (MAS) has issued a 2-year prohibition order (PO) 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 client.

 

2            Mr Lim is prohibited from providing any financial advisory service, or from taking part in the management, acting as a director or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act1. The order took effect from 4 May 2021.

 

3            The PO was issued against Mr Lim following MAS’ investigations into allegations that Mr Lim had made various false and misleading statements about the features of a regular premium investment-linked policy (ILP) to his client. The investigations revealed that Mr Lim had misinformed a client by telling her 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 issuer of the ILP would only top up approximately half of the amount; and
  • she could stop paying premiums and withdraw the premiums paid in full after 2 years, when in fact she would be required to pay annual premiums over the entire policy term and would not be able to withdraw the premiums paid in full after 2 years.

4          Synergy FA has since cancelled the policy and refunded the premiums paid by the client.  

 

 

Additional Information

 

Section 59(1)(bc) of the Financial Advisers Act (Cap. 110) (FAA)

Under this section, the Authority may make a prohibition order against a person who was a representative of a licensed financial adviser, if the Authority has reason to believe that circumstances exist under which there would exist a ground on which the Authority may revoke under section 23J of the FAA his status as an appointed or provisional representative.

 

Section 59(1)(c)(i) of the FAA

Under this section, the Authority may make a prohibition order against a person, if the Authority has reason to believe that the person is contravening, is likely to contravene or has contravened any provision of this Act.

 

Section 23J(1)(h)(ii)(B) of the FAA

Under this section, the Authority may revoke the status of an individual as an appointed or provisional representative if the Authority is not satisfied with his record of past performance or expertise, having regard to the nature of his duties as an appointed or provisional representative.

 

Section 26(1)(c)(ii) of the FAA

Under this section, a licensed financial adviser shall not make a false or misleading statement in connection with the provision of any financial advisory service, if, when he makes the statement he knows or ought reasonably to have known that the statement is false or misleading.

 

Section 37(1) of the FAA

Under this section, section 26 shall apply, with the necessary modifications, to an appointed or provisional representative in respect of his acting as such as if he were a licensed financial adviser.

 

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1 The PO against Mr Lim 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 FAA.