Another FAP licence taken away

After being turned into the FMA by the insurer, the FMA has stripped the business of its FAP licence and has referred the matter to the police.

The licence belonged to Hope Group Limited (HGL), a Christchurch-based firm offering personalised risk advice including life and health, income protection, trauma and disability insurance.

The impacted insurer notified the FMA, which reviewed 14 insurance policy applications submitted on behalf of 13 clients. It found a series of conduct issues by the firm’s director, Junpu Wang. These included:

• Submitting duplicate policy applications with false customer information
• Completing an authority to accept a direct debit form on behalf of a client without obtaining their authentic signature
• Failing to get client consent for first and second policies with similar cover to remain active for a significant period, resulting in the client paying two premiums
• Misleading recommendations for promotional offers that clients weren’t eligible for
• Failing to ensure that clients understood the advice provided