Enforcement Actions
Published Date: 21 June 2019

MAS Revokes the Financial Adviser’s Licence of International Financial Services (S) Pte. Ltd. for Failing to Comply with MAS’ Written Direction

Singapore, 21 June 2019…  The Monetary Authority of Singapore (MAS) has revoked the financial adviser’s (FA) licence of International Financial Services (S) Pte. Ltd. (IFS) with effect from 21 June 2019. This means that IFS is no longer permitted to carry on the business of providing financial advisory services in Singapore.

2          In September 2018, IFS informed MAS of its intention to cease the provision of financial advisory services. IFS is required under one of its licence conditions to ensure that its liabilities and obligations to all clients have been fully discharged or provided for prior to the cessation of its FA licence. To fulfil this licence condition, we asked IFS to submit an auditor’s certification to MAS, amongst other requirements, attesting to this.

3          When IFS failed to provide the auditor’s certification despite MAS’ repeated requests, MAS issued a written direction to IFS on 5 April 2019Pursuant to section 58(1) of the FAA. directing the company to provide, amongst others, the requisite auditor’s certification confirming that IFS has fully discharged or has sufficient means to discharge its liabilities and obligations to all clients prior to cessation of its FA licence.

4          IFS has failed to comply with MAS’ written direction.MAS has confirmed with the Financial Industry Disputes Resolution Centre (FIDREC) that as at 12 June 2019, there are no outstanding claims lodged at FIDREC against IFS or its representatives by its clients. Accordingly, MAS has revoked IFS’ FA licence under section 19(2)(c)(ii) of the Financial Advisers Act (FAA) for its failure to comply with MAS’ written direction.

5          MAS issues written directions to financial institutions in the public interest or for the protection of investors. MAS takes a serious view of financial institutions’ failure to comply with the conditions of their licence as well as written directions issued by MAS. MAS will not hesitate to take stern action including revocation of licences for any non-compliance with regulatory requirements.

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Additional Information

(A) Section 58(1) of the FAA
Under section 58(1) of the FAA, the Authority may, if it thinks it necessary or expedient in the interests of the public or a section of the public or for the protection of investors, issue written directions to, amongst others, a licensed financial adviser, to comply with such requirements as the Authority may specify in the written directions.

(B) Section 19(2)(c)(ii) of the FAA
Under section 19(2)(c)(ii) of the FAA, the Authority may revoke a financial adviser’s licence if it appears to the Authority that the licensed financial adviser has failed to satisfy any of its obligations under or arising from the FAA or any written direction issued by the Authority under the FAA.

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