, Hong Kong
345 view s
/Pressmaster from Pexels

HKIA and SFC probe Tahoe Life's investment dealings

HKIA appointed last week joint and several managers to take control of the insurer.

Hong Kong’s Insurance Authority (HKIA) and the Securities and Futures Commission (SFC) have teamed up to tackle suspected irregularities concerning the investment portfolio of Tahoe Life Insurance Company.

“This united effort highlights our shared dedication to upholding the integrity of Hong Kong’s financial markets by ensuring no misconduct putting investors in harm’s way falls through the cracks between different regulators,” said Julia Leung, the chief executive officer of the SFC. 

“As close partners, the SFC and the IA will continue to work closely to ensure resilience, accountability and trust are firmly embedded in the financial sector,” Leung added.

The HKIA appointed last week joint and several managers to take full control of Tahoe Life's affairs and property, marking the culmination of diligent efforts over the past four years. 

In May 2020, the HKIA sought assistance from the SFC regarding certain investments made by Tahoe Life. Subsequent inspections by the SFC of licensed fund managers revealed that Tahoe Life's assets were channelled into financial instruments linked with a related party in Mainland China.

The SFC launched its own investigation and conducted a joint operation with the IA on an SFC-licensed fund manager in June 2021, a first since the two regulators signed a Memorandum of Understanding (MoU) in September 2020. 

The SFC later took disciplinary action against the fund manager. Both the SFC and the IA remain committed to fostering a compliance culture that upholds the highest standards of professionalism and integrity in the financial industry.

“The IA expresses deep appreciation to the SFC for providing valuable support during an investigation on related party transactions entered into by Tahoe Life. This bears testimony to the efficacy of the MoU in protecting the interest of policy holders and the image of Hong Kong as an international financial centre,” said Clement Cheung, Chief Executive Officer of the IA.

Follow the link s for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.