CIRC Cracks Down on Illegal Selling of Hong Kong Insurance Products in Chinese Mainland
Yicai Global
/SOURCE : Yicai
CIRC Cracks Down on Illegal Selling of Hong Kong Insurance Products in Chinese Mainland

(Yicai Global) June 16 -- China Insurance Regulatory Commission (CIRC) has stepped up its fight against illegal selling of Hong Kong insurance products in the Chinese mainland. Since the end of 2016, the Commission has taken special action to crack down on illegal agency and selling of Hong Kong insurance products across 10 provinces and municipalities, including Shanghai, Guangzhou, and Shenzhen, it said on its official WeChat account.

With the support of public security and cyberspace departments, it has stopped activities of one insurance agent and disposed 62 websites and WeChat accounts belonging to illegally operating agents, of which 35 were closed and 27 were ordered to rectify their illegal behaviors, CIRC said.

By online investigation and offline visiting, the insurance regulatory departments have screened out 67 websites, WeChat accounts, and organizations suspected of being agents for Hong Kong insurance products, and have conducted targeted investigations and disposed them respectively, the statement added.

In recent years, not only do the increasing illegal agency activity and selling of Hong Kong insurance products in China disturb the market order of domestic insurance industry by misleading consumers and increasing the cost for protection rights, but it also upsets the national foreign exchange management, leading to asset outflow and even money-laundering, it said. 

CIRC will stay focused on such illegal activities, in particular, the selling or facilitating the selling products of Hong Kong insurance companies or other Hong Kong organizations and will strictly investigate and prosecute them. 

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Keywords: CIRC , Hong Kong , Regulator , Insurance , Products , Illegal , Selling , INVESTIGATION , Closing , Wechat