MAS fines Mercer for unlicensed life insurance sales

September 7 2015 by InsuranceAsia News Staff

The Monetary Authority of Singapore (MAS) has imposed a fine of S$15,000 (US$10,600) on the Singapore-based arm of Mercer for arranging contracts for life insurance policies without the appropriate licences.

MAS revealed that Mercer’s Singapore-based arm violated the Financial Advisers Act (FAA) for allowing unlicensed representatives to give financial advice and arrange contracts for policies.

The FAA requires representatives of life insurance firms to be authorized before they are allowed to provide financial advice or arrange life policies.

The MAS added that Mercer also violated rules when it allowed employees to arrange insurance contracts even if they had not passed the Capital Markets and Financial Advisory Services exam.

A spokesperson for Mercer apologised for the violation.

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