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 license of his principal is revoked or lapses or prohibition order under Section 59 of the FAA is made against his principal prohibiting it
from providing that type of financial advisory service;
(d) if the individual dies

Regulation 8A of the FAR provides that for the purpose of Section23C(4)(e) of the FAA unless the MAS has revoked or suspended the status of an individual as an appointed representative, the individual shall cease to be an appointed representative

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
(d) whose status as a provisional representative has not currently been revoked or suspended and who has not currently been prohibited by the MAS from providing that type of financial advisory service

The financial adviser shall make reasonable efforts to document the basis, and such documentation shall include the
following:
I. the client’s statement of his investment objectives, financial situation, and particular needs
II. the financial adviser’s reasonable basis for making the recommendation to the client having regard to the information obtained from the client
III. the financial adviser’s assessment of the disadvantages of the investment product based on the circumstances of the client.

Notice No: FAA-N03 shall apply to the following classes of persons:
(a) licensed financial advisers;
(b) exempt financial advisers;
(c) representatives of financial advisers;
(d) persons who are exempted under Regulation 29 of the FAR; and
(e) representatives of persons who are exempted under Regulation 29 of the
FAR.

A financial adviser shall disclose the following, in writing, to a client:
(a) it’s business name, business address, and telephone number;
(b) the type(s) of financial advisory service that it is authorized to provide under the FAA;
(c) the type of investment product in respect of which it is authorised to provide financial advisory service;
(d) any other type of activity carried out by the financial adviser which is not regulated by the MAS if any and
(e) the product providers whose products the financial adviser procures on behalf of its clients

The financial adviser shall disclose and explain to the client the nature and objective of the product, including:
I. whether the product is a life policy or units in a collective investment scheme;
II. whether the product is meant for protection, savings or investment; and
III. the investment strategy of the product.

The appointment of a provisional representative shall be valid for a period of up to three months from the date when the name of the representative is entered into the public register of representatives 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

An insurer should make payment as redemption proceeds to policyholders in respect of ILP sub finds which invest in another collective investment scheme within T + 7 business days.

In relation to a beneficiary of a trust designated by characteristics or by class, the financial adviser shall obtain sufficient information about the beneficiary to satisfy itself that it will be able to establish the identity of the beneficiary:
(a) before making a distribution to that beneficiary; or
(b) when that beneficiary intends to exercise vested rights.
(c) an entity listed on a stock exchange outside of Singapore that is
subject to:
(i) regulatory disclosure requirements; and
(ii) requirements relating to adequate transparency in respect of its beneficial owners
(d) a financial institution set out in Appendix 6A of this chapter;
(e) a financial institution incorporated or established outside Singapore that is subject to and supervised for compliance with AML/CFT requirements consistent with standards set by the FATF; or
(f) an investment vehicle where the managers are financial institutions-
(i) set out in Appendix 6A of this chapter; or
(ii) incorporated or established outside Singapore but are subject to and supervised for compliance with AML/CFT requirements consistent with standards set by the FATF

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

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.

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.

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.

The AML/CFT compliance officer includes
I. promoting compliance with the notice and these guidelines
II. informing employees and officers and representatives promptly of regulatory changes.
III. ensuring a speedy and appropriate reaction to any matter in which ML/Tf suspected
IV. reporting, or overseeing the reporting of, suspicious transactions;

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.

Section 27 Act requires licensed financial advisers to have a reasonable basis for any recommendation made, with respect to any investment product, to a person who may reasonably be expected to rely on the recommendation

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

i. Introducing any client to an introducee in relation to the provision of any type or types of financial advisory service by the introducee.
ii. Recording the particulars of any client and forwarding such particulars to an introducee with the client’s consent.
iii. Providing factual information to any client on investment products.

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

“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.

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.

The practice is meant to guide specified Institutions of persons or administrative procedures related to such as licensing

Regulation should set standard baseline requirements of board application and provide for the exercise to supervisory judgment to set high standards for commit exception when directed by particular circumstances of a financial institution.