Taijia Insurance surrenders all taxi policies, involving more than 7,000 vehicles. The Insurance Regulatory Bureau today (7th) took over Taijia's business and assets.
"Hong Kong 01" obtained a letter from the China Insurance Regulatory Bureau to Taiga Insurance on January 4 this year, stating that Taiga Insurance had been required to transfer more than US$154 million (approximately HK$1.2 billion) of assets from offshore private currency as early as October last year. When the account was transferred back to the company's bank account, Taiga had provided documents stating that the brokerage had been instructed to transfer the assets back. The China Securities Regulatory Commission discovered that Taiga subsequently withdrew the instruction.
The IA believes that the new evidence is a "blatant" violation of the instructions and also reminded that non-compliance is a crime.
The Insurance Regulatory Bureau will hold a press conference to explain the incident.
Taxi shortage | Taijia Insurance scolds the Insurance Regulatory Bureau for making things difficult and will report to the ICAC: Don’t you take over if you do a money-loss business?
Taxi shortage｜Insurance Regulatory Bureau takes over the insurance affairs and assets of Taiga, and holds a report this afternoon
"Hong Kong 01" obtained a confidential document sent by the China Insurance Regulatory Commission to Taijia Insurance on January 4.
The IA quoted Article 35(1) of the Insurance Industry Ordinance, “The IA may require any authorized insurer to take actions that the IA deems appropriate in relation to his affairs, business or property” and intervened on November 22 last year. The regulations require Taiga Insurance to transfer all assets deposited in the account of the brokerage "Nerico Brothers Limited" (NBL) to Taiga's BOCHK account before December 15.
This confidential document was signed by Lin Ruijiang, the executive director (general business) of the China Insurance Regulatory Commission, and Peter Gregoire, the legal director (market conduct) Guo Jiahua.
The China Insurance Regulatory Commission later obtained documents from Taiga Insurance. One of them was Taiga’s instruction on November 17 to NBL to transfer more than US$1.54 billion (approximately HK$1.2 billion) of assets to the Bank of China Hong Kong account; the other was on November 13 Japan’s instructions were to transfer NBL’s 20 million U.S. dollars back to the Bank of China’s Hong Kong account; there were also documents requesting the cancellation of NBL’s foreign exchange account.
IA reprimands Taiga for "blatantly"
However, on December 31, the China Insurance Regulatory Commission obtained new evidence from the China Securities Regulatory Commission, stating that Taiga had subsequently withdrawn its instructions to return the account and cancel the account.
The withdrawal instruction was sent by Fendy Lin, executive director of Taiga, by email.
The IA believes that the new evidence is a "flagrant" violation of instructions.
The China Insurance Regulatory Commission pointed out that failure to comply with the bureau’s intervention provisions constitutes a crime and can be fined 200,000 yuan and another individual can be imprisoned for two years.
Funds deposited in offshore private currency accounts
The IA further pointed out in the letter that the approximately HK$1.2 billion in the account of Nerico Brothers Limited was actually deposited in a private currency fund called Amber Hill ES Currency Arbitrage Fund SP, which is not located in Hong Kong. The IA pointed out that, Taijia Insurance did not notify the bureau of this arrangement.
The reporter has inquired about the incident with Taijia Insurance.
The China Insurance Regulatory Bureau will meet with reporters today (7th) afternoon.
