Findings from an investigation conducted by the Hong Kong Monetary Authority (HKMA) has led the Insurance Authority (IA) to impose disciplinary measures on Cheung Tak On, a technical representative (agent) affiliated with an Authorized Institution.
The actions include a two-month suspension of his licence and a monetary fine of HK$2,900. The decision was based on a comprehensive review of relevant information, including the findings from the investigation into Cheung’s conduct.
The HKMA investigation revealed that between January and February 2021, Cheung acquired a total of 20 gift vouchers, valued at HK$2,900, from his employer without their knowledge or authorization. These vouchers were initially meant as gifts for clients of the Authorized Institution but were not claimed. Cheung kept these vouchers for personal use without informing his employer.
Upon discovery of the misconduct, Cheung acknowledged his actions. He had used one of the vouchers, worth HK$50, and returned the remaining unutilised vouchers.
The IA determined that Cheung’s actions demonstrated a breach of ethical standards, thereby questioning his suitability as a technical representative (agent). As a result, the IA deemed disciplinary action necessary.
“Once you cross the line between right and wrong in your professional life, that line can begin to blur until one day, if you are not careful, it is eroded altogether,” IA head of market conduct Peter Gregoire said. “The consequences of this type of ethical fading can be devastating. That’s why it is vital to call it out right at the start and hold individuals accountable for their actions when they let their ethics slip. Disciplinary action calibrated and deployed at the appropriate level not only penalises wrongdoing but can help force a course correction at the right moment. That’s what we are aiming for in this case. In doing so, we also seek to reinforce the necessity of underpinning the insurance industry with a strong ethical culture.”
This case follows another by the regulator that saw it implement a six-year ban on a former insurance agent for the misappropriation and mishandling of premium payments from two policyholders.
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