Free-Look Period For Life Policies
The financial adviser shall disclose and explain to the client:
(a) the time frame for the client to reconsider his purchase of a life policy;
(b) the terms and procedures for exercising the free-look provision;and
(c) in the case of an investment-linked policy, that the risk of any fall in value of the underlying investment during the free-look period may have to be borne by the client.

Cancellation Period For Unit Trusts
Where the unit trust provides for a cancellation period, the financial adviser shall disclose and explain to the client:
(a) the time frame for the client to reconsider his purchase of a unit trust;
(b) the terms and procedures for exercising his right to cancel his purchase of units in the scheme; and
(c) that the risk of any fall in value of the units during the cancellation period would have to be borne by the client.

Notice No: FAA-N11 applies to any licensed or exempt financial adviser or its representative, who advises on any dual currency investment, except:
(a) where advice is given to an accredited investor, expert investor or institutional investor
(b) where advice is given to a high net worth individual as defined in the Guidelines on Exemption for Specialised
Units Serving High Net Worth Individuals
(c) where advice is given to any person outside Singapore

In addition to the Notice On Information To Clients And Product Information Disclosure [Notice No: FAA–N03], every financial adviser and its representative providing any financial advisory service to a client concerning a dual currency investment shall provide the client with a fair and adequate description of all material information, including the following:
(a) a description of the nature and mechanics of the dual currency investment
(b) any minimum investment amount in relation to the dual currency investment;
(c) the currencies from which the client can select at the time of investment;
(d) the investment duration offered by the deposit-taking institution in relation to the dual currency investment

“Introducing activity” means:
(a) introducing any client to an introducee in relation to the provision of any type or types of financial advisory service by the introducee; or
(b) the activity as referred and either or both of the following:
(i) recording the particulars of any client and forwarding such particulars to an introducee with the client’s consent;
(ii) providing factual information to any client on investment products.

Providing factual information to any client on investment products, including (where applicable) information on the name of the investment product, the product provider,the date on which the product is launched,the minimum subscription amount, and any fee or charge which may be imposed.

Where a financial adviser appoints a person as an introducer, it should take reasonable steps not to appoint an introducer whose carrying out of introducing activities is:
(a) if the introducer is a corporation, its sole business activity; and
(b) if the introducer is an individual, his full-time occupation;as the case may be.
(c)A financial adviser shall ensure that none of its employees or representatives enters into any arrangement with an introducer to carry out introducing activities.
(d)A financial adviser which engages the services of an introducer shall institute adequate control systems and procedures to ensure the proper conduct of the introducer.

The financial adviser is required to maintain a register containing the following particulars of the introducers appointed by the financial adviser, their:
(i) names;
(ii) places of business;
(iii) contact numbers;
(iv) business registration numbers or, in the case of individuals,identity card numbers

Exempt persons are exempted from the requirement to hold a FA licence in acting, whether directly or indirectly, as a financial adviser in giving advice in Singapore, either directly or through publications or writings, or by issuing or promulgating research analyses or research reports, concerning any investment product (other than life policies), to not more than 30 accredited investors on any occasion.

The principal shall ensure that any individual proposed to be a provisional representative is able to satisfy the following minimum entry requirements:
(a) he is at least 21 years old;
(b) he is in the process of relocating or has already relocated to Singapore;
(c) he possesses at least three years of working experience relevant to the type of financial advisory service that he will provide as a provisional representative; and
(d) he possesses at least a Bachelor’s degree or equivalent, or a professional qualification.

He possesses at least three years of working experience relevant to the type of financial advisory service that he will provide as a provisional representative.

Notice No: FAA-N13 shall apply to all licensed financial advisers, persons who are exempt from holding a financial adviser’s licence under Section 23(1)(a), (b), (c),(d) or (e) of the FAA, and their appointed representatives. It sets out the following:
(a) minimum entry requirements for appointed representatives;
(b) application of the Capital Markets and Financial Advisory Services Examination (“CMFAS Examination”) requirements to persons intending to provide financial advisory services as appointed representatives under the FAA;
(c) circumstances under which the CMFAS Examination requirements do not apply;
(d) obligations of licensed financial advisers and exempt financial advisers

The CMFAS Examination requirements apply to individuals who wish to provide any of the following types of financial advisory service:
(a) advising others, either directly or through publications or writings.
(b) marketing of any collective investment scheme; or
(c) arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance

The following investment products:
(i) securities (other than collective investment schemes);
(ii) collective investment schemes;
(iii) futures contracts;
(iv) contracts or arrangements for the purposes of leveraged foreign exchange trading;
(v) life policies

MAS Notice 117 (Training and Competency Requirement: Health Insurance Module) issued under the Insurance Act (Cap. 142) shall apply to appointed representatives of financial advisers who provide the financial advisory services concerning any life policy with accident and health benefits, but excluding such policy where accident and health
benefits are paid out only:
(a) in the event of an injury to, or disability of, the insured as a result of an accident;
(b) in the event that the insured becomes total and permanently disabled;
(c) on the death of the insured by accidental cause; or
(d) on the occurrence of a combination of the events as set out in (a) to (c) above.

The minimum academic qualification requirements are as follows:
(a) a full certificate in GCE ‘A’ Level4;
(b) an International Baccalaureate Diploma qualification;
(c) a diploma awarded by a polytechnic in Singapore; or
(d) any other academic qualification which is equivalent to the qualifictions set out in sub-paragraph (a), (b) or (c) above.

A representative who possesses specified qualifications and work experience or who confines the performance of financial advisory services to a limited segment of the market is not required to pass certain modules of the CMFAS Examination. A representative who possesses any of the following qualifications is not required to pass Module 6A, 8A or 9A (as may be applicable):
(i) a degree or higher qualification in finance, financial engineering or computational finance; or
(ii) Chartered Financial Analyst (CFA) by the CFA Institute, USA

Specified Types Of Financial Advisory Services
The CMFAS Examination requirements shall not apply to any representative who confines the performance of financial advisory services in respect of:
(b) any investment product to:
(i) an accredited investor as defined in Regulation 2(1) of the FAR;
(ii) an institutional investor as defined in Regulation 2(1) of the FAR;
(iii) a related corporation of the licensed financial adviser for whom the representative acts;
(iv) a person that is connected to the licensed financial adviser for whom the representative acts

Retaking Of CMFAS Module 5 will not apply to:
(a) as of 18 February 2004, was a representative of an exempt financial adviser providing execution-related advice, and has completed a non-examinable course on Module 5 by 17 August 2004; or
(b) is or was a representative of an exempt financial adviser who had commenced the provision of execution-related advice within 12 months from 18 February 2004, and has completed a nonexaminable course on Module 5 within six months from the date of commencement of the activity, unless such individual has ceased the provision of execution-related advice for an exempt financial adviser for a period exceeding three years.

The Institute of Banking & Finance (“IBF”) administers Modules 6, 6A and 7, while the Singapore College of Insurance (“SCI”) administers Modules 5, 8, 8A, 9 and 9A. Details of the syllabus and examination format of these modules may be obtained from IBF and SCI.

The Authority expects appointed representatives of financial advisers to undergo continuing education so as to keep abreast of developments in the financial advisory industry and update their skills and knowledge in relation to the type of financial advisory services which they provide. In this regard, a principal must include the structured continuing professional development (“CPD”) training undertaken by its appointed representatives in its assessment on whether its appointed representatives remain fit and proper in respect of their provision of financial advisory services.

The total of the Core CPD hours and Supplementary CPD hours is referred to as the Total Annual CPD hours.

The total of the Pro-rated Core CPD hours and Pro-rated Supplementary CPD hours is referred to in this Notice as the Total Pro-rated CPD hours.

Pro−rated minimum number of training hours in Ethics = Total number of days appointed as an appointed representative of the particular principal in the calendar year/365 X 4 hours.

Pro−rated minimum number of training hours in Rules and Regulations =
Total number of days appointed as an appointed representative of the particular principal in the calendar year/365 X 8 hours

Pro−rated minimum number of Supplementary CPD hours = Total number of days appointed as an appointed representative of the particular principal in the calendar year/365 x Supplementary CPD hours

An individual who is an appointed representative of a particular principal for an aggregate period of less than 183 days in a calendar year and is unable to complete his Total Pro-rated CPD hours by the end of that calendar year, may carry over his unfulfilled Total Prorated CPD hours to the next calendar year (“New Calendar Year”) on the condition that he completes his unfulfilled Total Pro-rated CPD hours by the end of the New Calendar Year.

For purposes of calculating Supplementary CPD hours or Pro-rated Supplementary CPD hours, as applicable, an appointed representative who completes at least 2 hours of structured CPD training10 on:
(a) Medishield Life Scheme content;
(b) shield plan content; or
(c) a combination of MediShield Life Scheme content and shield plan content

Circumstances Under Which The CPD Requirements Do Not Apply
i)do not apply to an individual who has been appointed as an appointed representative of any financial adviser for the first time, for the period starting on the date of his first appointment as an appointed representative and ending on the last day of the same calendar year.
ii)Where an appointed representative (a) is required to take or re-take 1 or more applicable modules under the CMFAS Exams in any calendar year.
(b) passes the applicable module or applicable modules under the CMFAS Exams
iii) do not apply to the appointed representative for the period of the entire calendar year in which he passes the applicable module or applicable module.

Under Section 58(5) of the FAA, any person who contravenes any requirement specified in a written direction issued by the MAS (which would include Notice No: FAA-N13), shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000 and, in the case of a continuing offence, to a further fine not exceeding $2,500 for every day or part thereof during which the offence continues after conviction.