Requirements for financial advisers and their representatives with respect to recommendations made on investment products.
This notice applies to:
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:
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.
Requirements and standards in relation to disclosure, investment guidelines, borrowing limits and operational practices for investment-linked policies.
Requirements for the development and pricing of life insurance products and investment-linked policy sub-funds.
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.
Guidelines on the standards dealers and their representatives are required to adhere to when providing execution-related advice to clients.
Sets out the circumstances under which financial advisers are permitted to receive or accept remuneration.
Requirements and standards for life insurers as product providers.
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.
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.
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.
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.
Guidelines for Board and Senior Management on implementing fair dealing outcomes to customers.
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.
Governs the regulation of financial advisers in Singapore, including their representatives and supervisors.
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.
