A financial adviser shall report to the MAS, upon discovery of any of the following types of misconduct committed by its representatives:
(a) Acts Involving Fraud, Dishonesty or Other Offences of a Similar Nature.
(b) Acts Involving Inappropriate Advice, Misrepresentation or Inadequate Disclosure of Information.
(c) Failure to satisfy the Guidelines On Fit And Proper Criteria

For such cases, the financial adviser is expected to lodge a police report and submit to the MAS a copy of the police report, together with information (where available) relating to:
(i) the name of the police officer investigating the case; and
(ii) an update on the progress of the police investigation and result of the criminal proceeding (if any).

Acts Involving Inappropriate Advice, Misrepresentation or Inadequate Disclosure of Information: cases where its
representative:
(i) made a recommendation to a client without due consideration to his investment objectives, financial situation or particular needs;
(ii) made a deceptive, false or misleading statement to a client; or
(iii) failed to disclose to a client all material information relating to any designated investment product recommended by him, as specified in Notice No: FAA-N03, Notice On Information To Clients And Product Information Disclosure.

A serious breach of the financial adviser’s internal policy or code of conduct which would render the representative liable to demotion, suspension, or termination of the representative’s employment or arrangement with the financial adviser.

Where a misconduct has been committed for which the financial adviser required to report to the MAS the financial adviser shall submit to the MAS the relevant information in the form not later than 14 days after the discovery of the misconduct by the financial adviser. The Misconduct Report shall be lodged by the financial adviser through MASNET.

The Misconduct Report shall be lodged by the financial adviser through MASNET.

For the purpose of complying with the requirements, a financial adviser is expected to conduct internal investigations and keep proper records of the following:
(a) a summary of the facts of the case;
(b) interviews with relevant parties, such as the representative, his supervisor and the client;
(c) documentary evidence of the alleged misconduct;
(d) the investigator’s assessment and recommendation; and
(e) disciplinary action taken against the representative, if any.

Notice No: FAA-N15 sets out the obligations of the persons specified below in relation to the cancellation period of an unlisted debenture when they sell (whether directly or indirectly) an unlisted debenture to a client. This notice takes effect from 1 May 2011.
This notice shall apply to:
(a) holders of a financial adviser’s licence;
(b) exempt financial advisers;
(c) representatives of financial advisers;
(d) persons who are exempted under Regulation 29 of the FAR

Notice No: FAA-N15 does not apply to the following:
(a) unlisted debentures with tenures of three months or shorter;
(b) unlisted debentures which are exempt from prospectus requirements under the SFA; and
(c) purchases of unlisted debentures where the client is not an individual

“Beneficial owner”, in relation to a customer of a financial adviser, means the natural person who ultimately owns or controls the customer or the natural person on whose behalf a transaction is conducted or business relations are established and includes any person who exercises ultimate effective control over a legal person or legal arrangement.

“Core Principles” refers to the Core Principles for Effective Banking Supervision issued by the Basel Committee on Banking supervision, the Objectives and Principles for Securities Regulation issued by the International Organisation of Securities Commissions, or the Insurance Core Principles issued by the International Association of Insurance Supervisors;

Notice No: FAA-N06 is based on the following principles, which shall serve as a guide for all financial advisers in the conduct of their operations and business activities:
(a) A financial adviser shall exercise due diligence when dealing with customers, natural persons appointed to act on the customer’s behalf, connected parties of the customer and beneficial owners of the customer.
(b) A financial adviser shall conduct its business in conformity with high ethical standards, and guard against establishing any business relations or undertaking any transaction, that is or may be connected with or may facilitate money laundering or terrorism financing.
(c) A financial adviser shall, to the fullest extent possible, assist and cooperate with the relevant law enforcement authorities in Singapore to prevent money laundering and terrorism financing.

A financial adviser shall take appropriate steps to identify, assess and understand, its money laundering and terrorism financing risks in relation to:
(a) its customers;
(b) the countries or jurisdictions its customers are from or in;
(c) the countries or jurisdictions the financial adviser has operations in; and
(d) the products, services, transactions and delivery channels of the financial adviser.

A financial adviser shall:
(a) develop and implement policies, procedures and controls, which are approved by senior management
(b) monitor the implementation of those policies, procedures and controls,and enhance them if necessary;
(c) perform enhanced measures where higher risks are identified, to effectively manage and mitigate those higher risks; and
(d) ensure that the performance of measures or enhanced measures to effectively manage and mitigate the identified risks,

The appropriate steps referred to in the paragraph above shall include:
(a) documenting the financial adviser’s risk assessments;
(b) considering all the relevant risk factors before determining the level of overall risk and the appropriate type and extent of mitigation to be applied;
(c) keeping the financial adviser’s risk assessments up-to-date; and
(d) having appropriate mechanisms to provide its risk assessment information to the Authority.

A financial adviser shall identify and assess the money laundering and terrorism financing risks that may arise in relation to:
(a) the development of new products and new business practices, including new delivery mechanisms; and
(b) the use of new or developing technologies for both new and pre-existing products.

Where There Are Reasonable Grounds for Suspicion Prior to the Establishment of Business Relations or Undertaking of any Transaction Prior to a financial adviser establishing business relations or undertaking any transaction, where the financial adviser has any reasonable grounds to suspect that the assets or funds of a customer are proceeds of drug dealing or criminal conduct as defined in the CDSA, or are property related to the facilitation or carrying out of any terrorism financing offence as defined in the TSOFA.

Where There Are Reasonable Grounds for Suspicion Prior to the Establishment of Business Relations or Undertaking of any Transaction, the financial adviser shall:
(a) not establish business relations with, or undertake a transaction for, the customer; and
(b) file an STR, and extend a copy to the Authority for information.

A financial adviser shall perform the measures as required when:
(a) the financial adviser establishes business relations with any customer;
(b) there is a suspicion of money laundering or terrorism financing, notwithstanding that the financial adviser would not otherwise be
required under Notice No: FAA-N06 to perform the measures; or
(c) the financial adviser has doubts about the veracity or adequacy of any information previously obtained.

For the purposes of the above, a financial adviser shall obtain at least the following information:
(a) full name, including any aliases;
(b) unique identification number (such as an identity card number, birth certificate number or passport number, or where the customer is not a natural person, the incorporation number or business registration number);
(c) the customer’s:
(i) residential address; or
(ii) registered or business address, and if different, principal place of business, as may be appropriate;
(d) date of birth, establishment, incorporation or registration (as may be appropriate);

A financial adviser shall verify the identity of the customer, using reliable, independent source data, documents or information. Where the customer is a legal person or legal arrangement, a financial adviser shall verify the legal form, proof of existence, constitution and powers that regulate and bind the customer, using reliable, independent source data, documents or information.

A financial adviser shall verify the due authority of each natural person appointed to act on behalf of the customer by obtaining at least the following:
(a) the appropriate documentary evidence authorising the appointment of such natural person by the customer to act on his or its behalf; and
(b) the specimen signature of such natural person appointed.

A financial adviser shall not be required to inquire if there exists any beneficial owner in relation to a customer that is:
(a) Deleted with effect from 30 November 2015;

A financial adviser shall, during the course of business relations with a customer, observe the conduct of the customer’s account and scrutinise transactions undertaken throughout the course of business relations, to ensure that the transactions are consistent with the financial adviser’s knowledge of the customer, its business and risk profile and where appropriate, the source of funds.

Where there are any reasonable grounds for suspicion that existing business relations with or transactions for a customer are connected with money laundering or terrorism financing, and where the financial adviser considers it appropriate to retain the customer:

When a financial adviser (“acquiring financial adviser”) acquires, either in whole or in part, the business of another financial institution (whether in Singapore or elsewhere), the acquiring financial adviser shall perform the measures on the customers acquired with the business at the time of acquisition except where the acquiring financial adviser has:
(a) acquired at the same time all corresponding customer records (including CDD information) and has no doubt or concerns about the veracity or adequacy of the information so acquired; and
(b) conducted due diligence enquiries that have not raised any doubt on the part of the acquiring financial adviser as to the adequacy of AML/CFT.
measures previously adopted

A financial adviser shall screen a customer, natural persons appointed to act on behalf of the customer, connected parties of the customer and beneficial owners of the customer against relevant money laundering and terrorism financing information sources, as well as lists and information provided by the Authority or other relevant authorities in Singapore for the purposes of determining if there are any money laundering or terrorism financing risks in relation to the customer.

A financial adviser shall screen the persons referred to in the paragraph above:
(a) when, or as soon as reasonably practicable after, the financial adviser establishes business relations with a customer;
(b) on a periodic basis after the financial adviser establishes business relations with the customer; and
(c) when there are any changes or updates to:
(i) the lists and information provided by the Authority or other relevant authorities in Singapore to the financial adviser

A financial adviser shall not perform simplified CDD measures:
(a) where a customer or any beneficial owner of the customer is from or in a country or jurisdiction in relation to which the FATF has called for countermeasures;
(b) where a customer or any beneficial owner of the customer is from or in a country or jurisdiction known to have inadequate AML/CFT measures, as determined by the financial adviser for itself or notified to financial advisers generally by the Authority, or other foreign regulatory authorities; or
(c) where the financial adviser suspects that money laundering or terrorism financing is involved.

“Close associate” means a natural person who is closely connected to a politically exposed person, either socially or professionally;