MAS Reprimands The Royal Bank of Canada Entities for Contravention of Section 99B(3)(a) of the Securities and Futures Act and Section 23B(3)(a) of the Financial Advisers Act.

1      On 10 February 2012, MAS reprimanded Royal Bank of Canada (Asia) Limited [“RBCAL”] for contravention of section 99B(3)(a) of the SFA and Royal Bank of Canada (Singapore Branch) [“RBC”] for contravention of section 23B(3)(a) of the FAA.

2      Section 99B(3)(a) of the SFA provides that a principal shall not permit any individual to carry on business in any type of regulated activity on its behalf unless the individual is an appointed representative, provisional representative or temporary representative in respect of that type of regulated activity. Section 23B(3)(a) of the FAA provides that a principal shall not permit any individual to provide any type of financial advisory service on its behalf unless the individual is an appointed representative or provisional representative in respect of that type of financial advisory service.

3      RBCAL has contravened section 99B(3)(a) of the SFA as it had allowed seven individuals who were not appointed representatives, provisional representatives or temporary representatives of RBCAL to conduct the regulated activity of dealing in securities on its behalf during the period from 26 November 2010 to 23 August 2011.

4      RBC has contravened section 23B(3)(a) of the FAA as it had allowed two individuals who were not appointed representatives or provisional representatives of RBC, to conduct financial advisory activities on its behalf during the period from 26 November 2010 to 23 August 2011.

5      RBC and RBCAL have confirmed to MAS that they have put in place policies and procedures to prevent future recurrence.

MAS expects all financial institutions to ensure that they do not permit any individual to conduct any type of regulated activity under the SFA and FAA on their behalf unless the individual is an appointed or provisional representative in respect of that type of regulated activity or financial advisory service.

Last Modified on 26/11/2016