Singapore, 19 October 2023… The Monetary Authority of Singapore (MAS) has issued prohibition orders against five persons for engaging in unlawful sub-agency activities, where appointed representatives had arrangements with unlicensed individuals to perform financial advisory services on their behalf. 

Overview

2 These individuals are prohibited, for periods varying between 3 to 5 years, from providing any financial advisory service and from taking part in the management, acting as a director, or becoming a substantial shareholder of any financial advisory firm under the Financial Advisers Act. Mr Tan Yaosheng Kelvin and Mr Wu Zhao Heng Victor are additionally prohibited from carrying on business as an insurance intermediary, and from taking part in the management of any insurance intermediary under the Insurance Act. 

3 The five persons and the effective periods for the prohibition orders issued against them are as follows:

5-year prohibition orders issued against Mr Tan Hongxiang, Jeremy and Ms Tong Hui Zhi; and 4-year prohibition order issued against Ms Phua Shu Rong

4 MAS’ investigation found that:

a. Ms Tong, who was neither an appointed representative nor authorised to provide financial advisory services, had sold 13 insurance policies to 4 customers.

b. Ms Tong’s sales were processed by Mr Jeremy Tan and Ms Phua, who were appointed representatives of AXA. Ms Phua informed AXA that she had made the sales, and they were reviewed by Mr Jeremy Tan – her supervisor.

c. Ms Phua then transferred the commissions for the policies sold to Mr Jeremy Tan and eventually to Ms Tong.

d. In this manner, Mr Jeremy Tan, Ms Tong and Ms Phua had deceived the 4 policyholders into thinking that they were advised by a licensed representative of AXA when they were not.

e. Further, AXA was also misled into believing that the policies were sold by Ms Phua when the policies were sold by Ms Tong.

3-year prohibition orders issued against Mr Tan Yaosheng Kelvin and Mr Wu Zhao Heng Victor

5 In a separate case, Mr Kelvin Tan and Mr Wu had recruited an individual who was not an appointed representative to provide financial advisory services.

a. Mr Kelvin Tan gave his personal AFA-issued iPad and log-in credentials to the individual, to document client information, and to submit policy proposals to AFA in Mr Tan’s name.

b. Mr Wu, who was Mr Kelvin Tan’s supervisor, provided guidance and/or updates regarding the clients’ policy documentation as well as the status of the policies, to the individual, despite being aware of the unlawful arrangement.

MAS will take firm action to protect the public and preserve the integrity of the financial industry

6 Ms Loo Siew Yee, Assistant Managing Director (Policy, Payments & Financial Crime), MAS, said: “MAS’ licensing requirements for financial advisory representatives are put in place to protect members of the public. These requirements aim to ensure that such services are only provided by fit and proper and adequately qualified persons, who are subject to supervision by licensed firms. Unlawful sub-agency arrangements circumvent these requirements, and MAS will take firm action against individuals who engage in them.”

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