Regulatory Alerts2020-01-13
Added
Restriction as to Receipt and Payment of Volume-Based Remuneration
The Monetary Authority of Singapore issued Circular No. ID 01/20 to enforce Section 35ZH of the Insurance Act, which prohibits insurers from paying and brokers from receiving volume-based remuneration. This restriction bans compensation solely tied to the number of contracts, total premiums, or sums insured, following instances where insurers made such payments to brokers without firm knowledge. The Authority warns that non-compliance constitutes a criminal offense punishable by a fine of up to $50,000, imprisonment for up to 12 months, or both.
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