MAS seeks industry comments on Financial Advisers Regulations
Singapore, 6 March 2002. The Monetary Authority of Singapore ("MAS") is seeking industry comments on a number of draft documents relating to the Financial Advisers Act (No. 43 of 2001) ['FAA']. They are:
Financial Advisers Regulations ("FAR");
two Written Notices on the standards expected of financial advisers relating to: - Recommendations on Investment Products - Product Disclosure and Information to Clients; and
Guidelines on Standards of Conduct for Financial Advisers, which sets out the general standards expected of financial advisers and their representatives in conducting financial advisory activities.
2 The FAR is subsidiary legislation promulgated under the FAA, which was assented to by the President on 17 October 2001. The FAA consolidates and streamlines the different regulatory regimes governing the provision of financial advisory services for investment products, including the sale of unit trusts and life insurance, into a single piece of legislation. The FAA will provide a more flexible and integrated regulatory framework for entities engaging in financial advisory activities. It will also promote consistent professional standards across the industry.
3 The draft documents contain further details on the implementation of the new regime for financial advisers under the FAA.
4 Some of the key provisions and requirements in the FAR include:
Financial requirements for licensed financial advisers;
Criteria for approval of the Chief Executive Officer and duties of the Chief Executive Officer;
Restriction on the use of the term "independent"; and
Licence application procedures.
5 Industry participants have until 27 March 2002 to submit their comments on the draft documents.
6 MAS will be conducting a series of briefings to relevant industry participants on the FAA and FAR, and releasing further draft documents on other regulatory issues, including one on Training & Competence Requirements of Financial Advisers, for industry consultation. Details will be announced shortly.
7 To allow the affected parties to prepare themselves for the implementation of the FAA, MAS has also released a draft of the Financial Advisers (Transitional and Savings Provisions) Regulations ['FA(T&S) Regs'].
8 The FAR, Written Notices, Guidelines on Standards of Conduct for Financial Advisers, and FA(T&S) Regs, are available on MAS' website.