MAS Imposes Composition Amounts of $2,500 and $7,500 on Coutts & Co Ltd for Contraventions of Section 23B(3)(a) of the Financial Advisers Act (Cap.110) ["FAA"] and Section 99B(3)(a) of the Securities and Futures Act (Cap.289) ["SFA"] respectively

1          On 18 December 2013, Coutts & Co Ltd [“Coutts SG”] paid composition amounts of $2,500 and $7,500 in respect of contraventions of section 23B(3)(a) of the FAA and section 99B(3)(a) of the SFA respectively.

2         Section 23B(3)(a) of the FAA stipulates 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 or provisional representative in respect of that type of financial advisory service.  Section 99B(3)(a) of the SFA stipulates 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.

3          Coutts SG has contravened section 23B(3)(a) of the FAA as it allowed one of its representatives to provide the financial advisory service of advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning any investment product from 26 November 2010 to 6 July 2012 when he was not an appointed or provisional representative in respect of that type of financial advisory service.  Coutts SG has also contravened section 99B(3)(a) of the SFA as it allowed three of its representatives to carry on business in the regulated activity of trading in futures contracts from 26 November 2010 to 6 July 2012 when they were each not an appointed representative, provisional representative or temporary representative in respect of that type of regulated activity.

All financial institutions should ensure that they do not permit any individual to conduct any type of regulated activity under the SFA, or provide any financial advisory service under the FAA, on their behalf unless the individual is an appointed representative, provisional representative or temporary representative (as the case may be) in respect of that type of regulated activity or financial advisory service.

Last Modified on 26/11/2016