Insurance Authority cracks down on agents using fake academic credentials

Insurance Authority cracks down on agents using fake academic credentials | Insurance Business Asia

Insurance News

Insurance Authority cracks down on agents using fake academic credentials

Importance of regulatory compliance emphasised

Insurance News

By
Roxanne Libatique

The Insurance Authority (IA) of Hong Kong has sanctioned two former insurance agents for submitting false academic certificates to meet the minimum education requirements under the former self-regulatory system.

In the first incident, the former agent admitted to providing false information to the Insurance Agents Registration Board (IARB) twice – initially in 2013 when she first registered, and again in 2019 during her second renewal. The IA has imposed a 36-month ban to underscore the gravity of the misconduct.

In the second case, the former agent admitted to submitting false academic details to the IARB during the 2016 registration process. The IA has issued a 23-month ban, considering both the severity of the misconduct and the agent’s early admission and agreement to the disciplinary action.

IA emphasises importance of compliance

The IA said the actions of these individuals put policyholders at risk by potentially receiving advice from agents who did not meet the required educational standards and demonstrated compromised ethics by using false certificates.

“Both individuals are deserving of being prohibited from playing any part in the insurance market until such time as they are able to demonstrate such a complete reformation of character as to be trusted again, a process that must be underpinned with the acceptance and admission of the wrongdoing,” it said.

These incidents occurred before the IA assumed regulatory control of licensed insurance intermediaries on Sept. 23, 2019. They were managed according to the relevant requirements and disciplinary practices of the IARB.

Under the current regulatory framework, it is a criminal offense to provide false information to the IA during license applications or approvals under the Insurance Ordinance (Cap. 41). Offenders found guilty are subject to a fine at level 5 and six months of imprisonment.

IA reaffirms commitment to upholding regulatory compliance

The IA has affirmed its commitment to prosecuting any individual who submits false academic certificates under the current licensing regime.

“The IA will have no hesitation in prosecuting any individual who seeks to submit a false academic certificate to the IA as part of the licensing process under the current regime,” it said.

It also emphasised the responsibility of insurers and their intermediary management functions to perform thorough checks during recruitment and onboarding processes. This ensures the accuracy of the information submitted to the IA in licensing applications.

“Through its inspection of insurers and ongoing conduct supervision work, the IA will continue to assess the adequacy of insurers’ controls and processes on this issue and hold them accountable for this,” it said.