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29 Feb 2004

Formal Consolidation | 2004 RevEd

Insurance broking premium accounts

20.—(1) A financial adviser shall pay into a bank account maintained by it under section 32(1) of the Act all moneys received by it —

(a)	from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or proposed contract of insurance; or
(b)	from or on behalf of an insurer for or on account of an insured or intending insured.

(2) No financial adviser shall withdraw moneys from a bank account maintained by it under section 32(1) of the Act without the prior written consent of the Authority.

(3) Paragraph (2) shall not apply to any withdrawal of moneys from a bank account maintained by the financial adviser under section 32(1) of the Act for —

(a)	any payment to or for a person entitled to receive payment of the moneys, including itself in so far as it is entitled to receive payment for itself;
(b)	any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
(c)	any investment by way of deposits placed with any bank licensed under the Banking Act (Cap. 19); or
(d)	any repayment of moneys that were paid into the account in error.

(4) A financial adviser shall pay moneys received from the realisation of any investment made under paragraph (3)(c) into a bank account maintained by it under section 32(1) of the Act.

(5) If, upon the realisation of any investment made under paragraph (3)(c), the amount of moneys received in respect of the realisation is less than the amount of moneys invested, the financial adviser shall pay, into the account from which the moneys were withdrawn for investment, an amount equal to the difference between the amount invested and the amount realised.

(6) Subject to paragraphs (7), (8) and (9), a financial adviser shall pay into, or retain in, a bank account maintained by it under section 32(1) of the Act any interest or other income that is received by it under the bank account or from any deposit made under paragraph (3)(c).

(7) Subject to paragraph (8), interest or other income arising from any payment which is due to the insurer under or in relation to a contract of insurance where the cover commences on or after 1st October 2002, that is received by a financial adviser from —

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c), shall belong to the insurer, but may be retained by the financial adviser for its own benefit with the insurer’s prior consent, and need not be paid into, or retained in, a bank account maintained by it under section 32(1) of the Act.

(8) Interest or other income arising from any payment which is due to an insurer under or in relation to a contract of insurance where the cover commences on or after 1st October 2002 that is received by a financial adviser from —

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c), after the credit period shall not be retained by the financial adviser for its own benefit and shall immediately be paid over to the insurer to whom such payment is due.

(9) Interest or other income arising from any payment which is due to an insurer under or in relation to a contract of insurance where the cover commences before 1st October 2002 that is received by a financial adviser from —

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c), may be retained by the financial adviser for its own benefit and need not be paid into, or retained in, a bank account maintained by it under section 32(1) of the Act.

(10) A financial adviser which receives any payment which is due to the insurer under or in relation to a contract of insurance shall —

(a)	where the cover commences before 1st October 2002, pay the amount to the insurer not later than 31st December 2002; and
(b)	where the cover commences on or after 1st October 2002, pay the amount within the credit period.

(11) Paragraph (10)(a) shall not affect any agreement between the financial adviser and the insurer to pay any sum that is due to the insurer under or in relation to a contract of insurance before 31st December 2002.

(12) A financial adviser shall designate any bank account maintained by it under section 32(1) of the Act, and any deposit placed with a bank under paragraph (3)(c), as an insurance broking premium account, with or without other words of description.

(13) In this regulation —

“contract of insurance” includes a contract of insurance that is subsequently cancelled;

“credit period” means —

(a)	the period within which the financial adviser has agreed with the insurer to make payments of any amount due to the insurer under or in relation to a contract of insurance; or
(b)	90 days from the date of commencement of cover under the contract of insurance, whichever is the earlier;

“financial adviser” means a licensed financial adviser or an exempt financial adviser which carries on the business of arranging contracts of insurance in respect of life policies.

(14) Any financial adviser which contravenes this regulation shall be guilty of an offence.

Informal Consolidation | Amended S 462/2021

Insurance broking premium accounts

20.—(1) A financial adviser shall pay into a bank account maintained by it under section 32(1) of the Act all moneys received by it —

(a)	from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or proposed contract of insurance; or
(b)	from or on behalf of an insurer for or on account of an insured or intending insured.

(2) No financial adviser shall withdraw moneys from a bank account maintained by it under section 32(1) of the Act without the prior written consent of the Authority.

(3) Paragraph (2) shall not apply to any withdrawal of moneys from a bank account maintained by the financial adviser under section 32(1) of the Act for —

(a)	any payment to or for a person entitled to receive payment of the moneys, including itself in so far as it is entitled to receive payment for itself;
(b)	any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
(c)	any investment by way of deposits placed with any bank that holds a licence granted under section 7 or 79 of the Banking Act; or [S 462/2021 wef 01/07/2021]
(d)	any repayment of moneys that were paid into the account in error.

(4) A financial adviser shall pay moneys received from the realisation of any investment made under paragraph (3)(c) into a bank account maintained by it under section 32(1) of the Act.

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c),

shall belong to the insurer, but may be retained by the financial adviser for its own benefit with the insurer’s prior consent, and need not be paid into, or retained in, a bank account maintained by it under section 32(1) of the Act.

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c),

after the credit period shall not be retained by the financial adviser for its own benefit and shall immediately be paid over to the insurer to whom such payment is due.

(a)	any bank account maintained by it under section 32(1) of the Act; or
(b)	any deposit made under paragraph (3)(c),

may be retained by the financial adviser for its own benefit and need not be paid into, or retained in, a bank account maintained by it under section 32(1) of the Act.

(10) A financial adviser which receives any payment which is due to the insurer under or in relation to a contract of insurance shall —

(a)	where the cover commences before 1st October 2002, pay the amount to the insurer not later than 31st December 2002; and
(b)	where the cover commences on or after 1st October 2002, pay the amount within the credit period.

(13) In this regulation —

“contract of insurance” includes a contract of insurance that is subsequently cancelled;

“credit period” means —

(a)	the period within which the financial adviser has agreed with the insurer to make payments of any amount due to the insurer under or in relation to a contract of insurance; or
(b)	90 days from the date of commencement of cover under the contract of insurance,

whichever is the earlier;

“financial adviser” means a licensed financial adviser or an exempt financial adviser which carries on the business of arranging contracts of insurance in respect of life policies.

(14) Any financial adviser which contravenes this regulation shall be guilty of an offence.

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