StudyingPaper 1

Switch exam

IIQE papers (insurance)

Paper 1Principles and Practice of Insurance✓Paper 3Long Term Insurance Paper 5Investment-linked Long Term Insurance

MPF intermediaries

MPFMPF Intermediaries Examination

IIQE Paper 1 Ethical and Other Related Issues question: statutory reporting obligation

IIQE Paper 1Ethical and Other Related Issues

A licensed agent suspects a client's premium comes from crime and reports it to her company's MLRO under its procedures. Her statutory reporting obligation:

A has been fully satisfied
B also needs a report from her to the IA
C is suspended until the MLRO has decided
D is met when the JFIU acknowledges the report

Show the answer and explanation

Answer: A. has been fully satisfied

Answer: has been fully satisfied. Once staff report suspicion to the MLRO under the institution's procedures, their statutory obligation is fully satisfied (OSCO s.25A(4)).Why not the others:• also needs a report from her to the IA: the report route is internal, then JFIU.• is suspended until the MLRO has decided: it is discharged, not suspended.• is met when the JFIU acknowledges the report: acknowledgement is not needed.Watch out: Thinking frontline staff must also report directly to the JFIU.Rule: The MLRO evaluates internal reports and, if there are grounds, discloses to the JFIU as soon as reasonable.Source: IA P1 Study Notes 2024 Ed. §7.4.7h, p.7/27; Organized and Serious Crimes Ordinance (Cap. 455) s.25A (e-Legislation, checked 31 Oct 2026)

Common mistake

Thinking frontline staff must also report directly to the JFIU.

Practise more IIQE Paper 1 Ethical and Other Related Issues questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Study note: Ethical and Other Related Issues IIQE Paper 1 practice questions & mock exams

Related IIQE Paper 1 questions

A broker fails to take reasonable care in arranging a client's cover, and the client suffers an uninsured loss. The client's most likely remedy is to An agent wants to give customers' personal data to another company so it can promote its products. Without the customers' prescribed consent, this would breach Which two of the following statements about the insurance provision in the anti-discrimination Ordinances are correct?

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →

Original study material written to the public IIQE Paper 1 syllabus. Independent, not endorsed by the Insurance Authority or the VTC. Verify figures and rules against current guidance before relying on them.