Notices
Notice FAA-N16 Recommendations on Investment Products
Requirements for financial advisers and their representatives with respect to recommendations made on investment products.
Issued pursuant to:
This notice applies to:
- Licensed financial advisers and their representatives.
- Exempt financial advisers and their representatives.
- Service companies and their representatives exempt under regulation 29 of the Financial Advisers Regulations.
It sets out the standards to be maintained by financial advisers and representatives when making recommendations on investment products, including assessing a customer’s knowledge and experience in complex products. These requirements cover the following aspects:
- Know your client.
- Customer knowledge assessment.
- Needs analysis.
- Documentation and record keeping.
Amendment Notes
- 17 Sep 2021
- MAS Notice FAA-N16 (Amendment) 2021 (726.2 KB) takes effect from 9 Oct 2021, except for amendments in respect of paragraph 3 which are effective from 17 Sep 2021.
- 4 Jan 2019
- MAS Notice FAA-N16 (Amendment) 2019 takes effect.
- 08 Oct 2018
- MAS Notice FAA-N16 (Amendment No.3) 2018 (562.1 KB)takes effect.
- 09 Jul 2018
- MAS Notice FAA-N16 (Amendment No. 2) 2018 (521.3 KB) takes effect.
- 02 Jul 2018
- MAS Notice FAA-N16 (Amendment) 2018 (604.4 KB) takes effect.
- 01 Apr 2017
- MAS Notice FAA-N16 (Amendment) 2017 (73.6 KB) takes effect.
- 29 Apr 2015
- MAS Notice FAA (Amendment) 2015 (82.8 KB) takes effect.
- 11 Dec 2012
- MAS Notice FAA-N16 (Amendment) 2012 (167.5 KB) takes effect.
- 01 Jan 2012
- MAS Notice FAA-N16 (Amendment) 2011 takes effect.
Related to this Notice
-
FAQsPublished Date: 17 September 2021
FAQs on Notice on Recommendations on Investment Products (FAA-N16)
Provides guidance to financial advisers on the expanded scope of exemptions to Notice FAA-N16, when advising corporate clients on selected over-the-counter derivatives contracts for hedging purposes.
-
NoticesLast Revised Date: 28 June 2021
Notice 307 Investment-Linked Policies
Requirements and standards in relation to disclosure, investment guidelines, borrowing limits and operational practices for investment-linked policies.
-
NoticesLast Revised Date: 19 March 2021
Notice 302 Product Development and Pricing
Requirements for the development and pricing of life insurance products and investment-linked policy sub-funds.
-
Practice NotesLast Revised Date: 04 January 2019
Practice Note on Recommendations on Investment Products [FAA PN-02]
Provides guidance to financial advisers and their representatives on the assessment they must conduct on a client before recommending any complex investment product to their clients.
-
GuidelinesLast Revised Date: 08 October 2018
Guidelines for Conduct of Business for Execution-Related Advice [FAA-G08]
Guidelines on the standards dealers and their representatives are required to adhere to when providing execution-related advice to clients.
-
RegulationsLast Revised Date: 08 October 2018
Financial Advisers (Remuneration) Regulations 2015
Sets out the circumstances under which financial advisers are permitted to receive or accept remuneration.
-
NoticesLast Revised Date: 29 June 2018
Notice 318 Market Conduct Standards for Direct Life Insurer as a Product Provider
Requirements and standards for life insurers as product providers.
-
Subsidiary LegislationPublished Date: 09 March 2017
Insurance (Remuneration) Regulations 2015
Sets out that all licensed insurers are not allowed to pay volume or value-based incentives on the sale of any life policy excepted under stipulated conditions.
-
ConsultationsPublished Date: 29 June 2016
Proposed Legislative Amendments to Exempt Execution-Related Advice in respect of Listed Excluded Investment Products from the Financial Advisers Act
Proposed legislative amendments to the Financial Advisers Regulations to exempt execution-related advice on listed excluded investment products from the Financial Advisers Act and consequential amendments to the Notice on Recommendations on Investment Products.
- Consultation number:
- P006 - 2016
- Start date:
- 29 June 2016
- Closing date:
- 28 July 2016
- MAS response date:
- 30 December 2016
-
ConsultationsPublished Date: 02 October 2014
Consultation Paper on (1) Draft Legislation and Proposed Legislative Amendments to Effect the Policy Proposals under the Financial Advisory Industry Review; and (2) Proposed Legislative Amendments to Authorise Inspections by Foreign Regulatory Authorities under the Financial Advisers Act
Proposed legislative amendments to raise the competency of FA representatives and quality of FA firms; lower distribution cost by enhancing market efficiency; and promote a culture of fair dealing.
- Consultation number:
- P022-2014
- Start date:
- 02 October 2014
- Closing date:
- 03 November 2014
- MAS response date:
- 11 May 2015
-
ConsultationsPublished Date: 05 March 2013
Consultation Paper on Recommendations of the Financial Advisory Industry Review
Proposed recommendations aimed at raising the quality of financial advisers (FA) and competency of FA representatives, improving efficiency in the distribution of life insurance and investment products, and promoting a culture of fair dealing in Singapore.
- Consultation number:
- P004-2013
- Start date:
- 05 March 2013
- Closing date:
- 04 June 2013
- MAS response date:
- 30 September 2013
-
GuidelinesLast Revised Date: 20 February 2013
Guidelines on Fair Dealing - Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers [FAA-G11]
Guidelines for Board and Senior Management on implementing fair dealing outcomes to customers.
-
ConsultationsPublished Date: 21 February 2008
Proposed Guidelines on Fair Dealing - Board and Senior Management Responsibility for Delivering Fair Dealing Outcomes to Consumers
Proposed guidance for Board and Senior Management on the implementation of fair dealing outcomes to customers. The fair dealing outcomes include ensuring that consumers receive clear, relevant and timely information to make informed financial decisions and that financial institutions handle complaints in an independent, effective and prompt manner.
- Consultation number:
- P001 - 2008
- Start date:
- 21 February 2008
- Closing date:
- 21 May 2008
-
ActsPublished Date: 31 March 2007
Financial Advisers Act 2001
Governs the regulation of financial advisers in Singapore, including their representatives and supervisors.
-
ConsultationsPublished Date: 14 June 2004
Draft Guidelines on Switching of Designated Investment Products
Proposed guidance on safeguards to guard against representatives advising clients to switch from one designated investment product (i.e. a collective investment scheme, a life policy or any other investment product prescribed by MAS) to another, that is detrimental to the client.
- Consultation number:
- P006 - 2004
- Start date:
- 14 June 2004
- Closing date:
- 14 July 2004
- MAS response date:
- 26 October 2004