ComplianceOne Insurance Newsletter – June 2025
The topics discussed in this monthly newsletter are as follows:
1. CPD Compliance Reporting Guidelines for 2024/2025
2. IA Conducts Undercover Inspections of Un-Licensing Activities
3. IA Enforces Retrospective Compliance with Broker Companies under SROs Regime
4. IA Bans Two Intermediaries for Fabricating Policies
Regulatory News
1.CPD Compliance Reporting Guidelines for 2024/2025
The IA has released comprehensive guidelines in a circular dated 6 June 2025, outlining the Continuing Professional Development (“CPD”) compliance reporting procedures for individual licensees and appointing principals for the Assessment Period 2024/2025 (1 August 2024 to 31 July 2025). This newsletter highlights the essential details.
Key Deadlines
Deadline | What to do before the deadline |
31 July 2025 | Individual licensees must complete their required CPD hours |
30 September 2025 | Individual licensees must submit CPD Declarations to the IA via Insurance Intermediaries Connect (“IIC”) or to their appointing principals |
31 October 2025 | Appointing principals must report the CPD compliance status of their appointed licensees to the IA |
How to accessing CPD Information via IIC
Individual Licensees: Log into IIC > select "CPD Requirement and Compliance Status" from the left menu to check required CPD hours and compliance status.
Appointing Principals: Use IIC Supervisor or Admin accounts to search individual licensees’ CPD status or download CPD Lists under the "Report" option, selecting "CPD hours required for the Assessment Period 2024/2025."
Reporting Procedures
Individual licensees can submit CPD Declarations in two ways:
1. Direct Submission via IIC: |
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2. Submission via Appointing Principals: |
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CPD Requirements and Penalties
Minimum CPD Hours: 15 hours, including 3 hours on "Ethics or Regulations," except for travel agents with restricted scope licenses (3 hours total).
Penalties:
Shortfall < 8 hours: $600 fine per hour, must be rectified by 31 October 2025, or face a 3-month suspension (continuing until resolved) and potential license revocation.
Shortfall ≥ 8 hours: $600 fine per hour, immediate 3-month suspension (continuing until resolved), with possible revocation if unresolved.
Non-submission by 30 September 2025: May trigger an IA investigation for fitness and propriety; false declarations risk license revocation and a 12-month ban.
SIGNIFICANCE:
The IA notes a rise in CPD compliance from 90% (2021/2022) to 99% (2023/2024) and urges full compliance in 2024/2025 to uphold professional standards in Hong Kong’s insurance market.
For further assistance, email cpd@ia.org.hk (general inquiries) or licensing@ia.org.hk (IIC-related matters).
Market News
2. IA Conducts Undercover Inspections of Un-Licensing Activities
The IA has recently taken proactive measures to protect the interests of policyholders and uphold the integrity of the insurance industry. Ms. Maria Tsui, Head of the Enforcement Department, highlighted the IA’s increased focus on street sales activities in Tsim Sha Tsui, which have raised concerns due to a surge in the number of sales personnel conducting promotional activities in the area.
On a weekend in early June 2025, the IA conducted a targeted surveillance operation in Guangdong Road, Tsim Sha Tsui. Undercover officers, acting as mystery shoppers, engaged with sales personnel to gather detailed information about these street sales practices. The findings from this operation have been shared with the relevant insurance companies to address any identified issues and prevent future non-compliance.
Passersby witnessed suspected IA’s Undercover Inspections (Source: Social Media – 3 May 2025)
IA’s Guidelines related to MCV Unlicensed referrers
In May 2024, IA issued Circular which outlines key principles to regulate referral business models for licensed insurance broker companies. This circular focuses particularly on long-term insurance products and clients from Mainland China, referred to as Mainland China Visitors (MCV). Its primary goal is to prevent unlicensed selling practices within the insurance industry.
Unlicensed referrers are restricted to introducing potential clients to licensed insurance brokers. They are explicitly prohibited from providing regulated advice, explaining insurance products, or engaging in any sales activities related to insurance products. Such sales activities must only be conducted by individuals or entities holding a valid license from the IA. Undertaking these actions without proper licensing is illegal and carries significant consequences.
Violations of these regulations can lead to criminal charges, especially in regions like Mainland China, where insurance laws are strictly enforced. Furthermore, non-compliance with the IA’s guidelines may result in severe disciplinary measures for licensed entities. These measures include, but are not limited to, suspension of licenses, substantial fines, and public reprimands.
SIGNIFICANCE:
Ms. Maria Tsui emphasized that the Enforcement Department is strengthening its monitoring capabilities to collect intelligence and detect any misconduct or harmful practices that could affect policyholders or tarnish the industry’s reputation. The IA is committed to early intervention, using public education and regulatory actions to deter wrongdoing before it escalates into systemic issues that could lead to severe disciplinary measures or criminal prosecution.
In addition to on-the-ground surveillance, the IA is leveraging technology and data tools to monitor online activities and social media platforms for intelligence gathering. Recognizing the value of industry collaboration, the IA is also working closely with industry organizations to encourage the sharing of information and knowledge, further enhancing its monitoring effectiveness.
Enforcement News
3. IA Enforces Retrospective Compliance with Broker Companies under SROs Regime
On 2 July 2025, the IA has taken disciplinary action against two licensed broker companies for failing to comply with essential regulatory standards aimed at protecting policyholders. These cases highlight the importance of maintaining separate client accounts and securing adequate professional indemnity insurance.
These violations breached guidelines under the three Self-Regulatory Organizations (“SROs”) and the current Insurance (Financial and Other Requirements for Licensed Insurance Broker Companies) Rules (Cap. 41L).
Case 1: Century Investment Planning Limited
Century Investment Planning Limited, a former licensed insurance broker company, received a public reprimand for the following breaches (incident occurred from April 2019 to March 2020):
Failure to deposit client monies into a separate account on multiple occasions.
Misuse of client funds.
Delayed settlement of premiums payable to an insurer.
Case 2: Unnamed Broker Company
A second broker company was fined $12,000 for inadequate professional indemnity insurance (Incident took place in 2019):
Miscalculation of required coverage under the SROs.
Resulting in a shortfall of $11.8 million in coverage.
No policyholders were harmed in either case, and both companies fully cooperated with the IA during the disciplinary proceedings.
SIGNIFICANCE:
The IA stresses that segregating client monies and maintaining sufficient professional indemnity insurance are non-negotiable requirements for insurance intermediaries. These safeguards are critical to ensuring policyholder security. The authority has made it clear that failure to comply will lead to proportionate disciplinary measures.
4. IA Bans Two Intermediaries for Favrucating Policies
On 12 June 2025, the IA announced the ban of two insurance intermediaries, Ms. LEUNG Wai Mei (“LEUNG”) and Ms. Ip Ka Ying (“IP”), from acting as insurance intermediaries for 12 months and 21 months respectively. This disciplinary action was taken due to their unethical practice of creating bogus policies to meet sales targets.
Details of the Misconduct
Ms. LEUNG Wai Mei: Fabricated two policy applications by misusing a client’s personal information. She certified a fake proof of identity for her son and attempted to conceal her actions by changing her correspondence address.
Ms. IP Ka Ying: Fabricated eight policy applications using personal details from clients and friends. Additionally, she fraudulently accepted exclusions of personal liabilities related to premises owned by two applicants.
The IA has described these actions as "iniquitous and premeditated," highlighting that such misconduct severely damages the trust and professionalism expected of insurance intermediaries.
SIGNIFICANCE:
The IA stresses that segregating client monies and maintaining sufficient professional indemnity insurance are non-negotiable requirements for insurance intermediaries. These safeguards are critical to ensuring policyholder security. The authority has made it clear that failure to comply will lead to proportionate disciplinary measures.
[End of ComplianceOne Insurance Newsletter – June 2025]
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