Hong Kong's insurance regulator, the Insurance Authority (IA), has instigated a conviction against Aurex Insurance Brokers, a licensed broker company. This is the first time the IA has instigated such an action.
On top of its conviction by the Eastern Magistrates’ Courts, Aurex Insurance Brokers was also fined HK$26,060 ($3.353) for failing to submit its audited financial statements to the IA within six months after the end of the financial year on two occasions, thereby contravening section 73(1) of the Insurance Ordinance (Cap. 41).
The audited financial statements, auditor’s report and auditor’s compliance report are important documents containing information necessary to assess whether a licensed broker company is capable of meeting the whole suite of regulatory requirements that render it worthy of being entrusted by members of the public to conduct their insurance business.
Any failure to comply with section 73(1) of the Insurance Ordinance attracts a fine at level six that amounts to $100,000 and a further fine of $500 for each day during which the offence continues.