Guidelines
Last Revised Date: 08 October 2018

Guidelines on Switching of Designated Investment Products [FAA-G10]

Guidelines on safeguards to guard against representatives advising clients to switch from one designated investment product to another in a manner detrimental to the client.

These guidelines apply to all licensed financial advisers and exempt financial advisers.

They set out the controls, processes and procedures that financial advisers should put in place to monitor switching and guard against representatives advising clients to switch from one designated investment product to another in a manner that would be detrimental to the client, including:

  • General obligations when making recommendations to clients.
  • Written disclosure requirements.
  • Monitoring of switching of designated investment products.
  • Remuneration structure to discourage undesirable switching.

Amendment Notes