MAS Imposes Composition Amounts of $10,000 and $30,000 on Standard Chartered Bank for Contraventions of Section 23B(3) of the Financial Advisers Act (Cap.110) ["FAA"] and Section 99B(3) of the Securities and Futures Act (Cap.289) ["SFA"] respectively

1              On 4 March 2014, Standard Chartered Bank [“SCB”] paid composition amounts of $10,000 and $30,000 in respect of contraventions of section 23B(3) of the FAA and section 99B(3) 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              SCB has contravened section 23B(3) of the FAA as it allowed 38 of its representatives to provide one or more of the following financial advisory services on its behalf –

(a)    Advising others, either directly or through publications or writings, and whether in electronic, print or other form, concerning any investment product;

(b)   Advising others by issuing or promulgating research analyses or research reports, whether in electronic, print or other form, concerning any investment product;

(c)    Marketing of any collective investment scheme; and

(d)   Arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance,

before the respective names of the representatives were entered into the public register or before the relevant financial advisory services were duly reflected against their respective names in the public register for the period between 26 November 2010 and 28 July 2011.

4              SCB has also contravened section 99B(3) of the SFA as it allowed 27 of its representatives to carry on business in the regulated activity of dealing in securities and 1 representative to carry on business in the regulated activities of dealing in securities and advising on corporate finance before the respective names of the representatives were entered into the public register or before the relevant regulated activities were duly reflected against their respective names in the public register for the period between 26 November 2010 and 18 July 2013.

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