Singapore Central Bank reprimands insurers AIA, Aviva and Prudential

Singapore’s central bank said that it has reprimanded the local businesses of insurers AIA, Prudential and Aviva for breaching requirements related to risk management and supervisors’ pay.

The Monetary Authority of Singapore (MAS) said that its investigations found numerous instances where remuneration was paid to supervisors. And that is over sales of investment products and life policies, which violates its regulations. When there are failures in a financial institution, a MAS reprimand is issued. Because that may pose potential risks to its business, market participants and investors.

AIA Financial Advisers Private Limited, Prudential Assurance Company Singapore, Aviva Ltd and Aviva Financial Advisers Pte Ltd were those which are reprimanded. And none of these companies responded to give comments when asked. Ho Hern Shin, deputy managing director, financial supervision, gave a statement that the MAS has dealt firmly with these financial institutions to send a clear message to the industry on the importance of upholding high ethical standards.