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Restriction on granting of unsecured loans or advances to director and employee of or adviser engaged by registered insurance broker

Insurance Act 1966

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—(1) Without affecting section 162 of the Companies Act 1967, a registered insurance broker must not, on or after 1 October 2002, in respect of its business in Singapore, grant, directly or indirectly, any unsecured loan or unsecured advance —(a)to a director of the insurance broker, other than a director who is its employee; or(b)to an employee of the insurance broker, including a director who is its employee, or a person engaged by the insurance broker to provide technical advice to clients, which in the aggregate and outstanding at any one time exceeds the sum of $3,000.(2) A registered insurance broker must not, on or after 1 October 2002 —(a)increase the amount of any unsecured loan or unsecured advance granted to any person referred to in subsection (1)(a) before that date; or(b)increase the amount of any unsecured loan or unsecured advance granted to any person referred to in subsection (1)(b) before that date if the total amount granted to that person will exceed the sum stated in that subsection.(3) Any registered insurance broker which contravenes subsection (1) or (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $12,500 and, in the case of a continuing offence, to a further fine not exceeding $1,250 for every day or part of a day during which the offence continues after conviction.(4) In this section, “director” includes the spouse, father, stepfather, mother, stepmother, son, stepson, daughter, stepdaughter, brother or sister of a director.[35ZK

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