A licensed insurance broker in Hong Kong has been convicted and fined for failing to submit its audited financial statements within the regulatory deadline.
This marks the first conviction of its kind initiated by the Hong Kong Insurance Authority (IA).
The Eastern Magistrates’ Courts ruled on March 19 that Aurex Insurance Brokers Limited breached section 73(1) of the Insurance Ordinance (Cap. 41) by not submitting its audited financial statements within six months of the financial year’s conclusion on two separate occasions. The company was fined HK$26,060.
Under regulatory requirements, licensed broker firms must file audited financial statements, an auditor’s report, and an auditor’s compliance report to demonstrate financial soundness and adherence to industry standards.
The failure to comply can result in penalties of up to HK$100,000, with an additional daily fine of HK$500 for continued noncompliance.
This enforcement action comes as the IA welcomes the 2025-26 Budget, which includes measures to expand the insurance industry while reinforcing market oversight.
Commenting on the measures in the 2025-26 Budget, the IA emphasised its role in reinforcing the city’s status as an international insurance and financial hub.
Among the initiatives welcomed by the regulator is the extension of the Pilot Insurance-linked Securities (ILS) Grant Scheme. This program, first introduced in 2021, has facilitated the issuance of catastrophe bonds in Hong Kong.
IA chairman Stephen Yiu stated that extending the scheme would contribute to the development of alternative risk transfer solutions. He added that a three-year extension would further support the expansion of Hong Kong’s ILS ecosystem.
Additionally, the IA is engaging with overseas insurers that maintain a presence in Hong Kong, assisting their transition back to the local market under a company re-domiciliation framework.
The 2025-26 Budget also outlined measures addressing broader economic trends, infrastructure development, and public finance management.
Financial Secretary Paul Chan emphasised the role of emerging technologies in economic growth, particularly artificial intelligence. The government plans to establish the Hong Kong AI Research and Development Institute and introduce a Pilot Manufacturing and Production Line Upgrade Support Scheme to modernise local industries.
Financial market reforms remain a priority, with upcoming initiatives to refine the listing regime, host the Hong Kong Global Financial and Industry Summit, and introduce new policies to support the gold market.
As part of long-term urban planning, the government reaffirmed its commitment to the Northern Metropolis project, which aims to expand land availability for technology and innovation industries. This includes the creation of a data facility cluster at Sandy Ridge and plans for new conference and exhibition centres.
