The Insurance Authority of Hong Kong (HKIA) and the Securities and Futures Commission (SFC) are jointly investigating alleged irregularities in the investment activities of Tahoe Life Insurance Company.
Julia Leung, CEO of the SFC, emphasized the importance of this coordinated effort. “Our collaboration underscores our commitment to maintaining the integrity of Hong Kong’s financial markets. We aim to ensure that no misconduct impacting investors is overlooked due to regulatory gaps,” Leung stated.
The HKIA recently appointed joint and several managers to oversee Tahoe Life’s operations and assets, a significant step after four years of intensive scrutiny.
The inquiry began in May 2020 when the HKIA sought the SFC’s assistance regarding questionable investments by Tahoe Life. SFC inspections revealed that Tahoe Life had invested in financial instruments associated with a Mainland China-related party.
The SFC launched its own probe, leading to a joint operation with the IA in June 2021—marking the first collaborative investigation since the two bodies signed a Memorandum of Understanding (MoU) in September 2020. Disciplinary action was subsequently taken against a licensed fund manager involved.
Both regulators are dedicated to fostering a culture of compliance and maintaining high standards of professionalism and integrity within the financial sector.
Clement Cheung, CEO of the IA, expressed gratitude to the SFC for its support in investigating Tahoe Life’s transactions with related parties. “This collaboration highlights the effectiveness of our MoU in safeguarding policyholder interests and reinforcing Hong Kong’s reputation as a global financial hub,” Cheung remarked.
