Hong Kong SFC & Insurance Authority Joined Forces to Tackle Suspected Irregularities of Tahoe Life Insurance Investment Portfolio, Investigations from Fund Managers Revealed Assets Were Channelled into Financial Instruments Linked to Related-Party in China Mainland
2nd August 2024 | Hong Kong
The Hong Kong Securities & Futures Commission (SFC) and the Insurance Authority (IA) have joined forces to tackle suspected irregularities of Tahoe Life Insurance investment portfolio, with investigations from fund managers revealing assets were channelled into financial instruments linked to related-party in China Mainland. Hong Kong Insurance Authority (IA) has taken control of all assets & operations of distressed Tahoe Life Insurance which has 92,000 life insurance policies valued at $2.3 billion, and is indirectly owned by troubled China developer Tahoe Group Chairman Huang Qisen. Tahoe Life Insurance was banned from issuing new life insurance policies since 2021. Tahoe Life Insurance had been unable to issue financial reports in 2022 & 2023. Deloitte Advisory Hong Kong & Deloitte Touche Tohmatsu have been appointed as joint managers to take control of Tahoe Life Insurance. Tahoe Life Insurance was formed in 2017 with the acquisition of Dah Sing Life Assurance by Tahoe Investment Group. Hong Kong SFC (26/7/24): “The Securities and Futures Commission (SFC) and the Insurance Authority (IA) have joined forces to tackle suspected irregularities concerning the investment portfolio of Tahoe Life Insurance Company Limited (Tahoe Life). The announcement made by the IA today (26 July 2024) to appoint Joint and Several Managers to take full control of the affairs and property of Tahoe Life represents the outcome of patient and assiduous work done over the past four years. Back in May 2020, the IA sought assistance from the SFC on information regarding certain investments made by Tahoe Life. Subsequent inspections carried out by the SFC on a few licensed fund managers revealed that the assets in question held by Tahoe Life were channelled into financial instruments linked with a related party on the Mainland. The SFC launched its own investigation, and conducted a joint operation with the IA on an SFC-licensed fund manager in June 2021, the first of its kind since the two regulators signed a Memorandum of Understanding (MoU) in September 2020. The SFC subsequently took disciplinary action against the fund manager. The SFC and the IA will continue with the efforts to foster a compliance culture in the financial industry that enshrines the highest standard of professionalism and integrity.”
“ Hong Kong SFC & Insurance Authority Joined Forces to Tackle Suspected Irregularities of Tahoe Life Insurance Investment Portfolio, Investigations from Fund Managers Revealed Assets Were Channelled into Financial Instruments Linked to Related-Party in China Mainland “
Julia Leung, the CEO of the SFC: “This united effort highlights our shared dedication to upholding the integrity of Hong Kong’s financial markets by ensuring no misconduct putting investors in harm’s way falls through the cracks between different regulators. As close partners, the SFC and the IA will continue to work closely to ensure resilience, accountability and trust are firmly embedded in the financial sector.”
Clement Cheung, CEO of Insurance Authority (IA): “The IA expresses deep appreciation to the SFC for providing valuable support during an investigation on related party transactions entered into by Tahoe Life. This bears testimony to the efficacy of the MoU in protecting the interest of policy holders and the image of Hong Kong as an international financial centre.”
Hong Kong Insurance Authority Takes Control of All Assets & Operations of Distressed Tahoe Life Insurance Which Has 92,000 Life Insurance Policies Valued at $2.3 Billion, Indirectly Owned by Troubled China Developer Tahoe Group Chairman Huang Qisen, Tahoe Life Insurance Banned from Issuing New Life Insurance Policies Since 2021, Tahoe Life Insurance Unable to Issue Financial Reports in 2022 & 2023, Deloitte Advisory Hong Kong & Deloitte Touche Tohmatsu Appointed as Joint Managers to Take Control of Tahoe Life Insurance, Tahoe Life Insurance was Formed in 2017 with Acquisition of Dah Sing Life Assurance
28th July 2024 – Hong Kong Insurance Authority (IA) has taken control of all assets & operations of distressed Tahoe Life Insurance which has 92,000 life insurance policies valued at $2.3 billion, and is indirectly owned by troubled China developer Tahoe Group Chairman Huang Qisen. Tahoe Life Insurance was banned from issuing new life insurance policies since 2021. Tahoe Life Insurance had been unable to issue financial reports in 2022 & 2023. Deloitte Advisory Hong Kong & Deloitte Touche Tohmatsu have been appointed as joint managers to take control of Tahoe Life Insurance. Tahoe Life Insurance was formed in 2017 with the acquisition of Dah Sing Life Assurance by Tahoe Investment Group.
Tahoe Life (26/7/24): “On 26 July 2024, the Insurance Authority (the “IA”) appointed Messrs. Lai Kar Yan (Derek), Kam Chung Hang (Forrest) and Cheng Man Lung of Deloitte as the Joint and Several Managers (the “Managers”) to take full control of the affairs, business and property of Tahoe Life Insurance Company Limited (“Tahoe Life”) in Hong Kong. Tahoe Life is incorporated in Bermuda, and is authorized to carry on long term insurance business in Hong Kong. Tahoe Life mainly engaged in writing life, annuity, and linked direct insurance. According to statistics published by the IA, Tahoe has over 92,000 in force policies as of 31 March 2024. The Managers are tasked to maintain operations of Tahoe Life to safeguard interest of its policyholders, and to take appropriate steps to assess the present financial position of Tahoe Life. All existing policies issued by Tahoe Life will not be affected by the appointment of the Managers. Tahoe shall maintain business operations as usual including policy administration, claims handling, and other customer service. Messrs. Lai Kar Yan (Derek), Kam Chung Hang (Forrest) and Cheng Man Lung are corporate rescue specialists from Deloitte China.”
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