Singapore legislation
Clause 32
Clause 32
Insurance broking premium accounts
(1)
Every licensed financial adviser shall, for the purposes of this section, establish and maintain a separate account with a bank licensed under the Banking Act (Cap. 19).
(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the types of moneys that must be paid into or withdrawn from such account;
the manner in which moneys should be paid into or withdrawn from such account;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) shall be 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) shall be 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 which contravenes subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $100,000.