MAS IMPOSES A COMPOSITION AMOUNT OF $10,000 ON UNITED OVERSEAS BANK LTD FOR BREACH OF DISCLOSURE REQUIREMENTS

1 On 9 June 2006, United Overseas Bank Ltd ["UOB"] paid a composition amount of $10,000 for contravening FAA-N03 "Notice on Disclosure on Information to Clients and Product Information Disclosure" [the "Notice"]. A contravention of any requirement specified in a Notice constitutes a breach of section 58(1) of the Financial Advisers Act ["FAA"].

2 Between October 2002 and November 2004, UOB failed to disclose to clients the list of product providers for whom it distributed life policies. During the same period, the bank also failed to disclose to all its privilege banking clients the remuneration that it received from product providers for the recommendations made to clients.

3 This is the second time UOB has breached the disclosure requirements. UOB has since taken steps to comply with the disclosure requirements under the Notice.

In a disclosure-based regime, it is important for financial advisers to provide consumers with all relevant information when making recommendations. Financial advisers must have adequate systems and procedures to ensure that they make proper disclosures so that consumers can make informed financial decisions.