ComplianceOne Insurance Newsletter –
October 2026
The topics discussed in this monthly newsletter are as follows:
Regulatory Up
Enforcement News
ICAC Convicts Intermediary of Conspiracy to Defraud over Clients’ False Early MPF Withdrawals
IA Suspends Jian Yongqin for Three Months for Failing to Comply with Principal’s Internal Controls
Market News
Regulatory Updates
1. IA Launches e-Submission Function for Financial Returns by Licensed Insurance Broker Companies
On 5 November 2026, the IA launched a new e-FR Submission Function on the Insurance Intermediaries Connect (“IIC”) portal. This allows licensed insurance broker companies to submit the required financial documents electronically. Once submitted via the e-FR Submission Function, hard copies are generally not required.
There is a one-year transitional arrangement (parallel run) period from 5 November 2026 to 31 October 2027. During this period, the IA will continue to accept hard-copy submissions. After 31 October 2027, submissions should be made through the e-FR Submission Function unless the IA specifies otherwise.
Key Points to Note |
The submission must be approved by the Responsible Officer (“RO”), or by a director if there is no RO on the submission date. |
The IA reserves the right to request original copies of the Required Documents where considered necessary. |
During the parallel run period, brokers may choose either electronic submission via IIC or hard-copy submission (not both required for the same period). If hard copies for the latest financial year were already submitted before the launch, no duplicate electronic entry is required for that period. |
Immediate Action Required
i) Log in to your IIC account as soon as possible to verify credentials and review account administration arrangements (e.g. account delegation and user permissions).
ii) Study the guidance(s) and online demo walkthrough, which are available on the IA website (see below linkage):
User Guide of submitting Financial Returns electronically on Insurance Intermediaries Connect
SIGNIFICANCE:
This digitalisation initiative streamlines the statutory financial reporting process for licensed insurance broker companies while maintaining full accountability under the existing regulatory framework. Broker companies should prioritise familiarisation with the IIC function and guidance materials during the parallel-run period to ensure a smooth transition and continued compliance with the six-month submission deadline.
2. Mandatory Insurance Coverage on Motor and Employees’ Compensation Extended to Huanggang Port (皇崗口岸) Hong Kong Port Area
On 9 October 2026, the Government announced that it had entered into a market agreement with 45 insurers to extend the scope of coverage of their existing mandatory motor and employees’ compensation insurance policies to the Huanggang Port Hong Kong Port Area (“HKPA”).
Key Facts | Remarks |
Effective date | 31 July 2026
the day the <Huanggang Port Hong Kong Port Area Ordinance “皇崗口岸港方口岸區條例” (Cap. 659)> came into operation |
Official opening of the Huanggang Port | 12 October 2026 |
Policies covered | General Insurance Policies limited to: i) section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) ii) section 40 of the Employees’ Compensation Ordinance (Cap. 282) |
The effective date is 31 July 2026, the day the Huanggang Port Hong Kong Port Area Ordinance (Cap. 659) came into operation. The official opening of the Huanggang Port was on 12 October 2026.
The agreement covers policies required under section 4 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Cap. 272) and section 40 of the Employees’ Compensation Ordinance (Cap. 282). Coverage is extended at no additional cost to policyholders. This follows a similar arrangement for the Shenzhen Bay Port Hong Kong Port Area in 2007.
SIGNIFICANCE:
This pragmatic market agreement, facilitated with the IA and the industry, ensures continuous compliance with mandatory insurance requirements for policyholders entering or working in the HKPA, eliminates potential confusion, and minimises administrative burdens ahead of the port’s opening.
Although the agreement is between the Government and the 45 authorized insurers, licensed insurance intermediaries (including insurance broker companies) should still familiarise themselves with the arrangement. Intermediaries are expected to:
Accurately explain to clients that existing mandatory motor and employees’ compensation policies issued by the participating insurers now cover the HKPA at no extra premium (no separate extension or endorsement is required);
Avoid recommending or selling any unnecessary add-on cover for the HKPA;
When placing new business or renewals for clients with potential exposure to the HKPA, confirm that the insurer is one of the 45 participating insurers; and
Be prepared to respond to client enquiries about territorial limits, particularly for commercial vehicle and employees’ compensation policies.
Proper awareness helps intermediaries provide accurate advice, avoid client disputes, and reduce professional liability risks arising from incorrect information about coverage in the HKPA.
Enforcement News
3. IA Disciplines Six Intermediaries for Breaching Anti-Money Laundering and Counter-Financing of Terrorism Controls
On 14 October 2026, the IA took disciplinary action against six individuals by banning them from becoming insurance intermediaries or suspending their licences for periods of between six and 13 months.
These individuals contravened the internal controls put in place by their appointing insurers by assisting customers to make false declarations that they had purchased bank drafts involving some HK$7.3 million to settle premium payments, while doing so on their behalf.
See below for details of each individuals and enforcement action:
Name and License Number | Action Taken |
Ms. LAM Nam (林楠) (Licence number: IE4851) | Suspension of licence for 8 months, commencing on 24 August 2026. |
Ms Lang Chit (冷捷) (Licence number: IH6136) | Suspension of licence for 11 months, commencing on 25 September 2026. |
Ms. LIANG Shuxian (梁淑嫻) (Licence number: IF9212) | Suspension of licence for 13 months, commencing on 17 September 2026. |
Ms. NG Chi Wah (吳芷華) (Licence number: JD8060) | Prohibition from applying to be licensed for 9 months, commencing on 22 July 2026. |
Mr. YEUNG Chung Chak (楊忠澤) (Licence number: IE7224) | Suspension of licence for 6 months, commencing on 9 October 2026. |
Ms. ZHANG Xindan (張新丹) (Licence number: IM1120) | Prohibition from applying to be licensed for 9 months, commencing on 27 Aug 2026. |
Source: Register of Licensed Insurance Intermediaries
SIGNIFICANCE:
Ms. Maria Tsui, Head of Enforcement of the IA, stressed:
“Although robust internal controls are of vital importance in preventing Money Laundering and Financing of Terrorism (ML/FT) activities, strict compliance by licensed insurance intermediaries remains to be the key in safeguarding the status of Hong Kong as an international financial centre.”
She added that since ML/FT offences carry heavy penalties, licensed insurance intermediaries should keep abreast of and fully observe the prevailing regulatory requirements.
This serves as a timely reminder for all licensed insurance intermediaries to review their practices and ensure full compliance with AML/CFT requirements and the internal controls of their appointing insurers.
4. ICAC Convicts Intermediary of Conspiracy to Defraud over Clients’ False Early MPF Withdrawals
On 22 October 2026, the Independent Commission Against Corruption (ICAC) announced that Mr. WONG Kam-fai (“WONG”), aged 37, an MPF intermediary and then insurance agent of FWD Life Insurance Company (Bermuda) Limited, was convicted at the District Court of four counts of conspiracy to defraud and two counts of using a false instrument.
Between July 2021 and November 2022, WONG colluded with clients to apply for the early withdrawal of MPF totalling about HK$4.6 million using false statutory declarations and supporting documents claiming permanent departure from Hong Kong to the Chinese Mainland. The clients had never migrated and had no intention of doing so. False instruments included statutory declarations purportedly signed before a solicitor and employment agreements. WONG charged clients fees ranging from several thousand to tens of thousands of dollars.
Three clients, Mr. MAK Kwok-pui, Mr. NGAN Hon-wai and Ms. LI Chi-kwan, aged between 52 and 53, had earlier pleaded guilty. Deputy Judge Mr. Jason WAN Siu-ming adjourned the case to 5 November for mitigation and remanded WONG in custody; sentencing is set for 26 November.
SIGNIFICANCE:
This case highlights the risks of intermediaries facilitating fraudulent early MPF withdrawals through false declarations. It serves as a reminder of the severe criminal consequences for such misconduct and the importance of integrity in intermediary activities involving retirement scheme products.
Although this is an ICAC criminal and MPFA case, the conduct is relevant under the IA regulatory regime for insurance intermediaries. Helping clients with genuine needs is acceptable but assisting them to make false declarations or use false documents to obtain illegal benefits is not. Such behaviour would also raise serious fitness and properness concerns as a licensed insurance intermediary under the IA, in addition to potential disciplinary action and criminal liability.
5. IA Suspends Jian Yongqin for Three Months for Failing to Comply with Principal’s Internal Controls
On 16 October 2026, the IA suspended Ms. JIAN Yongqin (“JIAN”) (Licence number: IH4992) for three months for failing to comply with her principal’s internal controls.
Name and License Number | Action Taken |
Ms. JIAN Yongqin (Licence number: IH4992) | Suspension of licence for 3 months, commencing on 22 July 2026. |
Ms. JIAN failed to abide by controls requiring her to witness the client signing a declaration form in Hong Kong confirming the purchase of a bank draft to settle the premium payment. She electronically sent the form to two clients situated outside of Hong Kong. The clients signed and posted the forms back, after which Ms. JIAN affixed her signature to verify that she had witnessed the signing. She did not confirm the clients had personally signed the forms in Hong Kong. The forms were submitted to the insurer, which relied on her signature.
SIGNIFICANCE:
In this case, Ms. JIAN’s actions breached the “fit and proper” criteria under the Insurance Ordinance, adversely affecting her suitability as a licensed insurance intermediary.
Insurance intermediaries are reminded to exercise due care and diligence in complying with their principals’ internal controls. Failure to do so may mislead principals as to the actual situation and affect their decisions. In this case, Ms. JIAN’s actions breached the “fit and proper” criteria under the Insurance Ordinance, adversely affecting her suitability as a licensed insurance intermediary.
Market News
6. Asian Insurance Forum (亞洲保險論壇) 2026 to Spark Insightful Exchanges on Building Resilience amid Polycrisis
On 15 October 2026, the IA announced that it will host its annual flagship event, the Asian Insurance Forum (AIF) 2026, on 13 November 2026 under the theme “The Resilience Blueprint amid Polycrisis 「多維佈局 韌性致遠」”.
This ninth edition will bring together distinguished speakers from around the globe, including financial regulators, industry leaders and policymakers, to discuss risk management strategies in global multimodal trade amid evolving geopolitical landscapes, as well as the growing prominence of alternative investments and asset-intensive reinsurance.
**For more details, please refer to the AIF 2026 website.
Online registration for virtual attendance is open, and the event is a Type 7 Qualified CPD Activity under GL24.
SIGNIFICANCE:
The AIF continues to position Hong Kong as a hub for insightful exchanges on building industry resilience in a polycrisis environment, fostering collaboration among regulators, industry and policymakers.
7. Appointments and Re-appointments to the Disciplinary Panel Pool and Expert Advisor Panel of the Insurance Authority
On 2 October 2026, the IA informed the industry that it had appointed 6 new members and re-appointed 27 incumbent members to the Disciplinary Panel Pool (“DPP”), and appointed 3 new members and re-appointed 10 incumbent members to the Expert Advisor Panel (“EP”), for a three-year term commencing on 1 October 2026.
The DPP supports the IA’s disciplinary process under the Insurance Ordinance and the Anti-Money Laundering and Counter-Terrorist Financing Ordinance by making disciplinary decisions through Disciplinary Panels. The EP provides technical advice during investigations, advises on appropriate sanctions, and serves as a source of industry expertise and market intelligence.
Membership lists are available on the IA website as below:
SIGNIFICANCE:
These appointments strengthen the IA’s enforcement framework by ensuring access to diverse expertise, supporting fair, effective and robust disciplinary processes that uphold market integrity.
[End of ComplianceOne Insurance Newsletter – October 2026]
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