Singapore legislation
Section 41
Section 41
Insurance broking premium accounts
(1)
Every licensed financial adviser which receives any money —
from or on behalf of an insured or intending insured for or on account of an insurer in connection with a contract of insurance or a proposed contract of insurance; or
from or on behalf of an insurer for or on account of an insured or intending insured,must, for the purposes of this section, establish and maintain a separate account with a bank licensed under the Banking Act 1970.
(2)
The Authority may prescribe, in relation to an account established under subsection (1) —
the types of moneys that must be paid into or withdrawn from such account;
the manner in which moneys should be paid into or withdrawn from such account;
the manner in which moneys held in such account are to be invested;
the manner in which the proceeds from the investment of moneys held in such account are to be distributed;
the rights and obligations of any party in relation to moneys held in such account; and
any other matter which the Authority considers to be incidental to or necessary for this section.
(3)
A lien or claim on the moneys in any account established by any licensed financial adviser under subsection (1) is void unless the moneys in the account are for fees due and owing to the licensed financial adviser.
(4)
A charge or mortgage on the moneys in any account established by any licensed financial adviser under subsection (1) is void.
(5)
In this section, “moneys” means any sum received by a licensed financial adviser as agent for an insured or intending insured, including policy moneys, premiums and claims payments.
(6)
Any licensed financial adviser who contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.[32