Response to "Protect Investors in Financial Products" by Mr Peter Wadeley (ST Forum, 6 August 2009)
Mr Peter Wadeley wrote that the Financial Advisers Act (FAA) should apply to all financial institutions in Singapore ("Protect investors in financial products", ST Forum, 6 August 2009).
In fact, it does. Any corporation which carries on the business of providing retail financial advisory services is required to obtain a financial adviser's license unless it is an exempt financial adviser under the FAA.
Financial institutions which are licensed under the Banking Act or registered under the Insurance Act and provide financial advisory services, such as Great Eastern Life Assurance Company Ltd, are considered exempt financial advisers. While they are not required to be separately licensed under the FAA, they are required to comply with the business conduct rules of the FAA when providing financial advisory services. These rules include ensuring that their representatives are properly qualified and that they have a reasonable basis for any recommendation.
Angelina Fernandez Director (Communications) Monetary Authority of Singapore