MAS Reprimands The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch for Contravention of Section 23B(3) of the Financial Advisers Act (Cap.110) ["FAA"]

1        On 27 November 2014, MAS reprimanded The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch (“HSBC”) for contravention of section 23B(3) of the FAA.

2        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        HSBC has contravened section 23B(3) of the FAA as it had permitted:

a) one representative, who was not an appointed or provisional representative in respect of the financial advisory services of –

i)    advising others, either directly or through publications or writings, and whether in electronic, print or other forms, concerning life policies; and

ii)   arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance,

to carry out such financial advisory services between 27 January 2012 and 26 February 2013; and

b) one representative, who was not an appointed or provisional representative in respect of the financial advisory service of advising others, either directly or through publications or writings, and whether in electronic, print or other forms, concerning securities other than collective investment schemes, to carry out such financial advisory service between 21 June 2012 and 19 March 2013.

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

Last Modified on 26/11/2016