Section 23C(4) of the FAA states that an individual shall cease to be an appointed representative in respect of any type of financial advisory service on the date:
(a) he ceases to be the principal’s representative or to provide that type of financial advisory service on behalf of the principal, the fact of which has been notified to the MAS;
(b) his principal ceases to provide that type of financial advisory service;
(c) the licence of his principal is revoked or lapses or a prohibition order under Section 59 of the FAA is made against his principal prohibiting it from providing that type of financial advisory service;
(d) the individual dies;

Section 23D(1) of the FAA provides that a provisional representative in respect of a type of financial advisory service is an individual:
(a) who satisfies the entry requirements;
(b) who intends to undergo an examination in order to satisfy the examination requirements;
(c) whose name is entered in the public register of representatives as a provisional representative.

Section 23D(3) of the FAA provides that a provisional representative shall immediately cease to be one:
(a) upon the expiry of the period of time as specified by the MAS;
(b) if he fails to comply with any condition or restriction imposed on him under Section 23K of the FAA;
(c) upon his principal informing the MAS of the satisfaction of the examination requirements as specified for that or any other type of financial advisory service; or
(d) on the occurrence of such other circumstances, as the MAS may prescribe.

Section 23F(1) of the FAA provides that a principal who desires to appoint an individual as an appointed or provisional representative in respect of any type of financial advisory service shall lodge the following documents with the MAS in such form (Forms 3A and 3B) and manner as the MAS may prescribe:
(a) a notice of intent by the principal to appoint the individual as an appointed or provisional representative;
(b) a certificate by the principal that the individual is a fit and proper person;
(c) in the case of a provisional representative, an undertaking by the principal to undertake such responsibilities in relation to the
representative as may be prescribed.

Regulation 4A(3) of the FAR provides that a principal who submits a certificate shall keep, in such form and manner, copies of all information and documents which the principal relied on in giving the certificate, for a period of five years from the date of lodgment.

Where a change occurs in any particulars of the appointed or provisional representative in any document required to be furnished to the MAS, the principal shall, no later than 14 days after the occurrence of such change,furnish particulars of such change to the MAS, in the prescribed form (Form 18) and manner. Form 18 is available on the MAS website.

Regulation 4A(4) of the FAR provides that for the purpose of Section 23F(1)(c) of the FAA, a principal shall undertake all of the following responsibilities in relation to its provisional representatives:
(a) To put in place measures to properly supervise the activities and conduct of the representative
(b) To put in place measures, including proper training, to ensure that the representative understands and complies with all Singapore laws
(c) To ensure that the representative is accompanied at all times by an authorised person
(d) To ensure that the representative sends concurrently to any of the authorised persons all electronic mail that he sends to any client or member of the public in the course of providing any financial advisory service.

Under Section 23J(1)(a) to (f) of the FAA, the MAS may refuse to enter the name and other particulars of an individual in the public register of representatives, or refuse to enter an additional type of financial advisory service for an appointed representative in that register, or revoke the status of an individual as an appointed or provisional representative if:
(a) he or his principal has not provided the MAS with such information or documents as the MAS may require;
(b) he is an undischarged bankrupt, whether in Singapore or elsewhere;
(c) execution against him in respect of a judgement debt has been returned unsatisfied in whole or in part;
(d) he has, whether in Singapore or elsewhere, entered into a compromise or scheme of arrangement with his creditors, being a compromise or scheme of arrangement that is still in operation.

In addition, the MAS stipulates additional requirements for provisional representatives. Section 23J(1)(s)(i) and (ii) of the FAA read with Regulation 4B(3) of the FAR provides that the MAS may refuse to enter the name and other particulars of the individual in the public register of representatives as a provisional representative if:
(a) The period between the date of his ceasing to be so licensed,authorised or regulated in a foreign jurisdiction and the date of his proposed appointment as a provisional representative exceeds 12 months.

Section 25(1) of the FAA provides that a licensed financial adviser shall disclose,to every client and prospective client, all material information relating to any designated investment product that the licensed financial adviser recommends to such person, including:
(a) No licensed financial adviser shall, with intent to deceive, make a false or misleading statement as to:
 any amount that would be payable in respect of a proposed contract in respect of any investment product; or
 the connection with the provision of any financial advisory service;
(b) the benefits to be, or likely to be, derived from the designated investment product and the risks that may arise from the designated investment product;

No licensed financial adviser shall, with intent to deceive, make a false or misleading statement as to:
 any amount that would be payable in respect of a proposed contract in respect of any investment product; or
 the effect of any provision of a contract or a proposed contract in respect of any investment product; or
 the connection with the provision of any financial advisory service;

Section 27(1) of the FAA provides that no licensed financial adviser shall make a recommendation, with respect to any investment product, to a person who may reasonably be expected to rely on the recommendation, if the licensed financial adviser does not have a reasonable basis for making the recommendation to that person.

Section 27(3) of the FAA provides that where:
(a) a licensed financial adviser, in making a recommendation to a person, does not have a reasonable basis for making the recommendation;
(b) the person, in reliance on the recommendation, does a particular act, or refrains from doing a particular act;
(c) it is reasonable, having regard to the recommendation and all other relevant circumstances, for the person to do that act, or to refrain from doing that act,as the case may be, in reliance on the recommendation; and
(d) the person suffers loss or damage as a result of doing that act, or refraining from doing that act, as the case may be,
then, without prejudice to any other remedy available to that person, the licensed financial adviser is liable to pay damages to that person in respect of that loss or damage.

Where a licensed financial adviser or any of its representatives, in its or his marketing of any collective investment scheme, receives client’s money or property, such money or property shall be handed over to:
(a) The provider of the collective investment scheme;
(b) A holder of a capital markets services licence under the SFA to provide custodial services for securities which is authorised by the client to receive the client’s money or property; or
(c) A person exempt under the SFA from holding a capital markets services licence to provide custodial services for securities which is authorised by the client to receive the client’s money or property

Not later than the business day immediately following the day on which the licensed financial adviser or representative receives the money or property,unless the licensed financial adviser or any of its representatives has the client’s prior written consent to hand over after the specified date.

Regulation 20(3) of the FAR states that no financial adviser shall withdraw moneys from a bank account maintained by it, unless for any of the following circumstances:
(a) any payment to or for a person entitled to receive payment of the moneys, including itself in so far as it is entitled to receive payment for itself;
(b) any payment to or for an insurer in respect of amounts due to the insurer under or in relation to a contract of insurance;
(c) any investment by way of deposits placed with any bank licensed under the Banking Act (Cap. 19); or
(d) any repayment of moneys that were paid into the account in error.

Regulation 20(13) of the FAR defines “credit period” as the period within which the financial adviser has agreed with the insurer to make payment of any amount due to the insurer under or in relation to a contract of insurance;or 90 days from the date of commencement of cover under the contract of insurance, whichever is earlier.

Individuals are not prohibited from purchasing life policies from unlicensed overseas insurers. However, financial advisers are required to seek the approval of the MAS, should they wish to place their clients’ life insurance risks with unlicensed overseas insurers. This is to ensure that no financial adviser is being used by unlicensed overseas insurers to assist them to write domestic Singapore risks, since unlicensed overseas insurers are not allowed to carry on insurance business in Singapore as an insurer.

Section 34(1) of the FAA provides that no licensed financial adviser shall, with intent to deceive, in relation to a proposed contract of insurance:
(a) write on a form, being a form that is given or sent to an insurer, any matter that is material to the contract and is false or misleading in a material particular;
(b) omit to disclose to the insurer any matter that is material to the proposed contract;
(c) advise or induce the intending insured to write on a form, being a form that is given or sent to the insurer, any matter that is false or misleading in a material particular; or
(d) advise or induce the intending insured to omit to disclose to the insurer any matter that is material to the proposed contract.

Furthermore, Section 34(2) of the FAA states that no licensed financial adviser shall, with intent to deceive, in relation to a claim under a contract of insurance:
(a) fill up, in whole or in part, a form, being a form that is given or sent to an insurer, in such a way that the form is false or misleading in a material particular;
(b) omit to disclose to the insurer any matter that is material to the claim;
(c) induce the insured to fill up, in whole or in part, a form, being a form that is given or sent to the insurer, in such a way that the form is false or misleading in a material particular; or
(d) advise or induce the insured to omit to disclose to the insurer any matter that is material to the claim.

Section 36(1) of the FAA states that where a licensed financial adviser sends a circular or written communication in which he makes a recommendation, whether expressly or by implication, with respect to any securities, he shall include in the circular or other communication, in type not less legible than that used in the remainder of the circular or other communication, a concise statement of the nature of any interest in, or any interest in the acquisition or disposal of the securities that he, or a person associated with or connected to him, has at the date on which the circular or other communication is sent.

The licensed financial adviser has a duty to disclose potential and actual conflict of interest to its clients or prospects. Before establishing a client relationship, a financial adviser should fully:
(a) disclose all material information or facts that may compromise its objectivity or independence, or impair its ability to make unbiased and objective recommendations; and
(b) disclose to the clients its relationship with the financial institutions in respect of the products which it is providing advice on or recommending.

Section 36(8) of the FAA states that a licensed financial adviser who contravenes this “conflict of interests” section shall be guilty of an offence and be liable on conviction to a fine not exceeding S$25,000, or to imprisonment for a term not exceeding 12 months or to both.

A related issue here is that the MAS also imposes a condition that all licensed financial advisers and its representatives who provide financial advisory service in respect of securities would have to maintain a register of its interests in securities. Regulation 20A(1) of the FAR requires the licensed financial adviser and its representatives to:
(a) maintain in Form 12 (Form 12 is available on the MAS website) a register of his interests in securities;
(b) enter in the register, within seven days after the date that he acquires any interest in securities, particulars of the securities in which he has an interest and particulars of his interest in those securities;
(c) retain that entry in an easily accessible form for a period of not less than five years after the date on which such entry was first made; and
(d) ensure that a copy of the register is kept in Singapore.

Furthermore, when there is any change in any interest in securities, the relevant person is required to enter the particulars of the change in the register within seven days from the date of the change and retain the entry for five years.

Regulation 18(2) of the FAR provides that: “director” includes the spouse, father, step-father, mother, step-mother, son, adopted son, step-son, daughter, adopted daughter, step-daughter, brother, step-brother, sister or step-sister, of the director.

Regulation 18(2) of the FAR provides that: ”market value”, in relation to assets which are securities listed for quotation, or quoted, on a securities exchange or an overseas securities exchange, means:
(i) the last transacted price of the securities traded on the securities exchange or overseas securities exchange on the immediately
preceding business day;
(ii) if there was no trading in the securities on the immediately preceding business day, then, subject to point (iii) below, the lower of the transacted price and last bid price of the securities; or
(iii) if there was no trading in the securities in the immediately preceding 30 days.

“unsecured advance”, “unsecured loan” or “unsecured credit facility” includes:
(i) any advance or loan made without security;
(ii) any advance, loan or credit facility made with security, where the advance, loan or credit facility or any amount due and owing
thereunder at any time exceeds:
(A) the market value of the assets constituting that security
(iii) any guarantee or performance bond entered into by the licensed financial adviser.
(iv) any credit facility without security, whether it has been drawn-down or not.

Regulation 13(2) of the FAR provides that for the purposes of Section 56(2) of the FAA, the MAS shall have regard to the following criteria in determining whether to grant its approval in respect of an application made:
(a) whether the licensed financial adviser has provided the MAS with such information relating to the appointee or director as the MAS may require;
(aa) whether the appointee or director has had a prohibition order under Section 59 of the FAA made against him that still remains in force;
(b) whether the appointee or director is an undischarged bankrupt in Singapore or elsewhere;
(c) whether execution against the appointee or director in respect of a judgment debt has been returned unsatisfied in whole or in part;

Regulation 14 of the FAR provides that for the purposes of Section 57(2) of the FAA in determining whether a chief executive officer, director or executive director of a licensed financial adviser has failed to discharge the duties of his office, the MAS shall have regard to whether the chief executive officer, director or executive director has:
(aa) put in place compliance function and arrangements that are commensurate with the nature, scale and complexity of the business of
the licensed financial adviser.
(b) identified, addressed and monitored the risks associated with the business activities of the financial adviser;
(c) ensured that the business activities of the financial adviser are subject to compliance checks;
(d) set out in writing the limits of the discretionary powers of each officer, committee, sub-committee or other group of persons of the financial adviser