Key Supervisory and Regulatory Initiatives

MARKET CONDUCT

Raising Standards in the Financial Advisory Industry
In the course of its supervision of FAs, MAS observed that most FAs have taken active steps to put in place controls, processes and procedures to comply with the business conduct requirements under the FAA. However, the standard of compliance varied across FAs.

In November 2004, MAS released an Information Paper on Good Practices for Licensed and Exempt Financial Advisers to highlight the good practices it has observed. The aim of sharing this information is to assist FAs in enhancing their advisory and sales process, the competency of their representatives, and their complaints handling and compliance functions. All FAs are encouraged to review the good practices set out in the paper to assist them in designing their own internal compliance systems, controls and procedures.