Hong Kong’s Insurance Authority (IA) has warned brokerage firms against using unlicensed individuals to promote policy sales to mainlanders. This follows the arrest of an insurance broker and a referrer for alleged breaches during a joint operation by the IA and the Independent Commission Against Corruption. The IA noted some brokers use unlicensed individuals for regulated activities without proper supervision, referring mainland clients to buy long-term policies and earning referral fees. These practices often involve prohibited rebates and false statements from clients claiming all activities were conducted by brokers in Hong Kong. The IA is investigating other firms and insurers suspected of similar practices, emphasising the need for compliance and proper supervision in referral activities within the regulatory framework.