FORMER PRUDENTIAL AGENT LOSES CASE IN SINGAPORE

Singapore insurance agent GYC Financial Planning has lost a legal case against the local arm of UK-based assurer Prudential. The agency, owned by Goh Yang Chye, had claimed that its corporate manager agreement with Prudential Singapore was wrongfully terminated. Compensation was demanded. Mr Goh also claimed that Prudential Singapore breached a verbal agreement made in February 2004 that gave him the right to market Prudential Singapore’s products. Prudential had terminated the corporate manager agreement in February 2003, a week before a new Financial Advisers Act banned corporate agencies from representing assurers such as Singapore. However, Mr Goh’s company disagreed with Prudential’s interpretation of the new Act. Justice Judith Prakash accepted Prudential’s argument that it had no case to answer on the grounds that Mr Goh's evidence at face value alone did not establish any case and that the evidence he gave was so unsatisfactory or unreliable that his burden of proof had not been discharged. “Once the Act was fully effective, GYCFP, not being an individual, could no longer perform those functions for Prudential”, the judge said, adding that “there was, therefore, good reason for Prudential to terminate the agreement.”