The Securities and Futures Commission (SFC) and the Insurance Authority (IA) have collaborated to address suspected irregularities in the investment portfolio of Tahoe Life Insurance Company Limited. On 26 July 2024, the IA appointed Joint and Several Managers to take control of Tahoe Life’s affairs and property, following a four-year investigation. In May 2020, the IA sought the SFC’s assistance regarding Tahoe Life’s investments. Inspections revealed assets linked to a related party in Mainland China. The SFC launched its own investigation, leading to disciplinary action against a licensed fund manager in June 2021. This marks the first joint operation since the regulators signed a Memorandum of Understanding in September 2020. The SFC and IA emphasize their commitment to maintaining professionalism and integrity in Hong Kong’s financial industry.
SFC CEO Julia Leung highlighted the importance of this collaboration in upholding market integrity, while IA CEO Clement Cheung praised the SFC’s support in investigating related party transactions by Tahoe Life, underscoring the effectiveness of their cooperation in protecting policyholders and maintaining Hong Kong’s financial reputation.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR128