The Hong Kong Insurance Authority (IA) reported that Yan Zhiyu has been fined HK$10,000 by the Eastern Magistrates’ Courts for failing to appear at an interview as part of an ongoing investigation.
The inquiry was related to the suspected misappropriation of premium payments from two policyholders.
According to the IA, Yan’s absence constituted a breach of section 64ZZL(1) of the Insurance Ordinance (Cap. 41), which mandates cooperation with regulatory investigations.
The IA clarified that individuals may be called upon to assist with investigations or attend interviews to support the Authority’s regulatory responsibilities.
Non-compliance with these requirements can lead to significant penalties, including fines up to HK$200,000 and imprisonment for up to one year if convicted on indictment.
For summary convictions, the maximum penalty is a HK$50,000 fine and six months’ imprisonment.
In a separate case, Tahoe Life Insurance Company Limited has been subject to disciplinary measures after the IA identified unauthorized related-party transactions between July 2019 and April 2020.
The insurer was fined HK$10 million, to be paid from its shareholders’ fund, and received a public reprimand.
The IA’s investigation found that Tahoe Life had entered into transactions with Tahoe Group Global (Co.) Limited without first obtaining the necessary regulatory approval.
During the period under review, directors Huang Qisen and Ge Yong were serving on Tahoe Life’s board.
Following the IA’s findings, both individuals are no longer considered suitable for senior management positions and have left the company.
As part of its response, the IA has implemented supervisory measures, including asset ring-fencing, enhanced internal controls, and new investment restrictions.
On July 26, 2024, the regulator appointed joint and several managers to oversee Tahoe Life’s operations, business, and property.
The IA stated that these actions are designed to protect policyholders, who will not see any changes to their coverage as a result of the enforcement.
The IA also announced enforcement actions against two insurance brokers for deficiencies in client fund management and professional indemnity insurance arrangements.
Century Investment Planning Limited, which no longer holds a license, was publicly reprimanded for failing to maintain client funds in separate designated accounts and for using client monies inappropriately.
The company also delayed premium payments to an insurer, violating both previous self-regulatory standards and the Insurance (Financial and Other Requirements for Licensed Insurance Broker Companies) Rules (Cap. 41L).
A second broker, whose identity was not disclosed, received a HK$12,000 fine for underestimating its professional indemnity insurance requirement under the prior regulatory framework, resulting in a coverage shortfall of about HK$11.8 million.
The IA noted that no client losses were reported in either case and that both firms cooperated with the regulator during the investigations.
