Hong Kong SFC fines Bermuda-registered life insurer over regulatory breaches

Hong Kong's Securities and Futures Commission (SFC) has reprimanded and fined FWD Life Insurance (Bermuda) HK$2.4 million ($306,142) for non-compliance with investment experience requirements.

FWD Life is a direct underwriter of long term life insurance and is registered in Bermuda, but is based in Hong Kong.

SFC found that the life insurer had failed to ensure it met key personnel requirements under the SFC Code on MPF Products (MPF Code) and the Fund Manager Code of Conduct (Notes 1, 2 & 3).

Specifically, FWD Life had failed to ensure there were at least two key personnel who met the minimum five-year investment experience requirement in managing retirement funds or public funds under the MPF Code at all times.

Between December 2012 to November 2016, the company only had one key personnel in place who met the minimum investment experience requirement.

FWD Life suggested it had only discovered it had insufficient key personnel following an enquiry by the Mandatory Provident Fund Schemes Authority made enquiries in January 2017.

Furthermore, SFC stated that FWD Life had failed to implement policies and procedures for the designation and monitoring of key personnel and to communicate to relevant staff members of their designation as key personnel.