For the purposes of ongoing monitoring, a financial adviser shall put in place and implement adequate systems and processes, commensurate with the size and complexity of the financial adviser, to:
i. monitor its business relations with customers
ii. detect and report suspicious, complex, unusually large or unusual patterns of transactions
iii. incorporated or established outside Singapore but are subject to and supervised for compliance with AML/CFT requirements consistent with standards set by the FATF.

There are Two classes of Representatives under the Financial Advisory Act.

Section 32 of the FAA requires every licensed FA to maintain a separate account with a bank for its life insurance broking premiums. Only circumstances of money can be withdrawn:
(a) any payment to or for a person entitled to receive payment of the money, 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 money that was paid into the account in error.

When there is any change in any interest in securities the relevant person required to enter the particulars of the change in the register within 7 days from the date of the change and retain the entry for five years.

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 the value of the units during the cancellation period would have to be borne by the client.

i. A financial adviser shall ensure that none of its employees or representatives enter into any arrangement with an introducer to carry out introducing activities.
ii. 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.
iii. It should take reasonable steps not to appoint an introducer carrying out of introducing activities is, if the introducer is a corporation, its sole business activity.
iv. It should take reasonable steps not to appoint an introducer carrying out of introducing activities is, if the introducer is an individual, his full-time occupation.

Exempt persons are exempted from the requirement to hold an FA license 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 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.

Directions ensure compliance by explaining specific instructions in detail to financial institutions or other specified persons. They have
the legal effect, meaning that the MAS can specify whether a contravention of a direction is a criminal offence.

Subsidiary legislation spells out in greater detail the requirements that financial institutions or other specified persons (e.g. a financial adviser’s representative) have to adhere to. Subsidiary legislation has the force of law and may specify that contravention is a criminal offence.

The Financial Advisers Regulations (FAR) came into effect as subsidiary legislation to give effect to the provisions of the Financial Advisers Act. The FAR is prescribed by the Monetary Authority of Singapore.

“The sale of functionally similar products, such as Single Premium Investment-linked Policies and trusts, would be subject to similar rules and standards.” under FAA.

The income of a person in the preceding 12 months is not less than $300,000 or it’s equivalent in value in a foreign currency.

A company licensed under the Insurance Act is exempt in Financial advisor.

The person exercising its power in relation to a company as its chief executive officer under the Companies Act is not an excluded financial advisor under FAA.

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 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 the value of the underlying investment during the free-look period may have to be borne by the client.

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 the 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

Exempt persons are exempted from the requirement to hold an FA license 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.

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

All existing financial advisers’ licenses will no longer have to be renewed.

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.