Clause 31

by inserting, immediately after subsection (2), the following subsections:“(3) If at any time it appears to the Authority that the chief executive officer or a director of an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme has failed to perform his functions or is no longer a fit and proper person to be so appointed, the Authority may direct the agent to remove the chief executive officer or director, as the case may be, from his office, appointment or employment.(4) When determining, for the purposes of subsection (3), whether the chief executive officer or a director of an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme has failed to perform his functions, the Authority shall, without prejudice to any other matter it may consider relevant, have regard to such criteria as may be prescribed.(5) Before directing an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme to remove its chief executive officer or director from his office, appointment or employment under subsection (3), the Authority shall —

give the agent and the chief executive officer or director, as the case may be, notice in writing of the Authority’s intention to do so; and

in the notice referred to in paragraph (a), call upon the agent and the chief executive officer or director, as the case may be, to show cause within such time as may be specified in the notice why the chief executive officer or director, as the case may be, should not be removed.(6) If the agent and the chief executive officer or director, as the case may be, referred to in subsection (5) —

fails to show cause within the time specified under subsection (5)(b) or within such extended period of time as the Authority may allow; or

fails to show sufficient cause,the Authority shall give notice in writing to the agent of the date on which the direction to remove the chief executive officer or director, as the case may be, is to take effect.(7) Any agent, for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, which fails to comply with any direction of the Authority under subsection (3) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000. (8) No criminal or civil liability shall be incurred by an agent for any foreign insurer carrying on insurance business in Singapore under a foreign insurer scheme, or any person acting on behalf of the agent, in respect of anything done or omitted to be done with reasonable care and in good faith in the discharge or purported discharge of the obligations of the agent under subsection (3).”; and

by inserting, immediately after the words “foreign insurer scheme” in the section heading, the words “, and removal of chief executive officer or director of agent in certain circumstances”.